The 2020 Japanese fiscal year, which ended on March 31st, was an interesting year for almost every developer, publisher, and major company in the games industry. Due to the effects of the COVID-19 pandemic, some game developers, like Nintendo,continue to thrive into the new fiscal yearas its major player base increased due to lockdown standards even as they slowly ease up.
Capcom was another game developer who has seen a successful 2020 fiscal year with promising beginnings into its 2021 year, thanks to the success ofMonster Hunter RiseandResident Evil Village,already breaking expectations in sales and personal recordsfor the company. Square Enix is another company to reveal its 2020 fiscal year earnings and plans for 2021 onward, however, its success relies on several promises the company hopes to achieve.
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Square’s financial success was comparable to Nintendo and Capcom as net sales for the entire company increased over 27% from the previous year while overall income increases over 44%, both setting record numbers for the developer. Video game sales increased to 40% and income from said sales grew to 43%. While major release titles such asFinal Fantasy 7: Remakebrought the company success,sales from Square’s existing catalog of gamesbecame stagnant, conversely.
Square’s goals for this fiscal year are to increase the number of sales of its titles well into the fiscal year of 2024, with plans of creating new IPs in the form of HD games, strengthen existing IP through supported content, and releasing new titles for major IP on a yearly basis. The success ofFF7Rproved to Square that the remastered approach to older IP titles leads to a successful financial run, with the company setting its sights on the PS5 marketthrough the exclusive Yuffie episode inFinal Fantasy 7 Remake Intergrade.
New “HD” titles for existing IPs are also included, a declaration that Square will be expected to make with the release ofNEO: The World Ends With Youin July 2021.NEOis the sequel to2007’s cult classicThe World Ends With You, a title that has recently seen an HD remaster on the Switch in 2018. The MMO market this fiscal year is another target that Square has its eyes set, as while recurring income has been at a record high due to heavy promotion ofFinal Fantasy 14’sfree and generous trial, the lack of a major expansion release in 2020 had seen a decline in net sales for Square.
The release ofEndwalkerexpansion later this year leads to the expectation for an increase in sales for the MMO market as well as the recurring revenue from new and returning players. Square also has plans to “expand recurring income by using expansion packages,” further backing the claim thatthe mainFinal Fantasy 14campaign will continue for at least another five years. With plans set on a successful 2021 and further plans to revive and support IPs for years to come, Square’s roadmap will continue to sate fans of its many franchises as surprises lay in store for its dedicated fanbase.
