In a newly published results briefing covering the first half of the financial year, the company notes that net sales and operating income within its digital entertainment business have fallen year on year. This is despite the fact that titles like Outriders, NieR Replicant ver.1.22474487139…, NEO: The World Ends with You, and Life is Strange: True Colors were all released during that time frame – something that Square puts down to the “challenging comparison” created by the previous year’s launches, which include Final Fantasy VII Remake.
“While NEO: The World Ends with You was well received by users, it has underperformed our initial expectations,” Square Enix says. “We have plans to release Life is Strange: True Colors for Nintendo Switch, as well as Life is Strange Remastered Collection in the near future. We are hoping for both titles to continue to sell well over the long term.”
In the first half of this financial year, Square has booked net sales of ¥168.9 billion (down ¥3.8 billion YoY), operating income of ¥29.1 billion (down ¥2.5 billion), ordinary income of ¥31.4 billion (up ¥900 million), and net income attributable to parent company shareholders of ¥22.9 billion (up ¥6.9 billion). Its full results release can be read here.