Square Enix's financial results are deteriorating, but Final Fantasy XIV is continuing to be a success

Square Enix's financial results are deteriorating, but Final Fantasy XIV is continuing to be a succe ...

Square Enix held its annual earnings call this week, which revealed some surprising surprises. In the first quarter of the current fiscal year, from April to June, the company appeared to suffer from underwhelming statistics in many of its key business segments, with one notable exception.

Despite a decrease in both total net sales and operational income of 15.5% and 16.7% respectively in Q1 2022, the company's MMO division saw a jump in revenue, including its flagship title Final Fantasy XIV. While the company's HD games division did not reach the levels of previous years or its mobile gaming segment found new entries inadequate to offset existing performances, the MMO division which comprises just three games saw strong growth year on year.

Square Enix stated in the report that it would no longer release any additional Final Fantasy XIV expansions this financial year, instead focusing on user retention through a variety of operational initiatives. The most recent expansion, Endwalker, was released back in December 2021, and traditionally the major expansions are released every couple of years, with some minor modifications between.

The whole report would give a lot of credence to the games-as-a-service business model, although some high-profile July releases such as Live A Live and Powerwash Simulator are not included, and the remainder of the year will see much-anticipated releases including Forspoken and Crisis Core Final Fantasy VII Reunion.