Square Enix’s HD Gaming Unit Loses $63 Million After Marvel’s Avengers Launch
Marvel’s Avengers was one of Square Enix’s biggest releases in years, but the game’s big sales were not enough to help Square Enix’s HD Games business turn a profit for the latest period.
Square Enix’s HD Games business unit–which includes Marvel’s Avengers, Final Fantasy VII Remake, and others–posted an estimated loss of 6.5 billion yen for the latest period, which works out to a loss of around $63 million USD. Net sales jumped significantly to 23.7 billion yen ($~230 million USD), but the cost of goods sold was more significant, leading to a loss. Square Enix also reported that it saw greater digital sales of catalog games during the period, but again, not enough to turn a profit overall.
The HD Games business is just one of Square Enix’s many categories. Overall, the company posted sales of 172 billion yen (up 43 percent) and a profit of 16 billion yen (up 46 percent) for the latest period, so the downturn in the HD Games business was not enough to impact the company’s overall bottom line.