Wednesday, August 8, 2012

Here's A Break-Down of Square Enix's 2nd Quarter Loss

Video game company Square Enix has already posted its earnings report for the 3-month period ended June 30, 2012. Hint: A loss.

To sum up this PDF, looks like the company's digital entertainment division is in a slump because of their console games. Meanwhile, the handhelds were strong due to strong sales of Dragon Quest Terry's Wonderland 3D. Their mobile game Final Fantasy Brigade helped the company deliver good results within its target platform while sales in PC and Smartphone were "okay."

In other divisions of the company, their Amusement segment (think Arcade) did not experience growth while the Publication segment (think Manga and Full Metal Alchemist) experienced favorable growth due to comic book sales. The Merchandising division also has experienced growth due to strong IP. Square Enix always has a strong IP.

What does Square Enix has to do about it?

Actually, none, to put it bluntly. Looks like the company is aware of this expected scenario due to their new strategy of networking and digital advancement of every segment to new ways of delivering content, especially to the smartphones which continually grows. This, according to them is an opportunity to capture new profit. That's why establishing a profit base is important at this point. In other words, all their efforts will turn to profit, albeit delayed right now.

In other news, Square Enix has just released two key games in North America, Kingdom Hearts 3D and Theatrythm: Final Fantasy. Later in Japan, Bravely Default: Flying Fairy is coming. Next year Lara Croft will be back and more fragile than ever in a brand new Tomb Raider game. Final Fantasy III will be hitting the new console OUYA too! These games, I bet Square Enix knows will mean a lot and will be important in their next earnings reports until 2013.

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