Square Enix’s earnings drop is a sign that the company needs to rethink its business model. NFTs are here to stay, and Square Enix will be looking into them in order not to miss out on this lucrative future market.
Square Enix has reported a drop in earnings and the number of subscribers for its games, but the company’s shares have risen. This is due to an increase in subscriptions for FFXIV: A Realm Reborn and the release of NFTs on Oct. 31st.
After its latest earnings call, Square Enix is wiping its brow and thanking its fortunate stars that things didn’t turn out worse. The studio had to tell investors that net sales had dropped somewhat in the past six months compared to a year before, owing to the absence of a breakthrough success during that time.
Square Enix made $1.48 billion in sales in the last six months, with a decrease in operating income ($254.7 million) and an increase in ordinary income ($276.6 million).
Square Enix’s primary silver lining comes from its massively multiplayer online role-playing game (MMORPG) business. MMO revenues enjoyed “rapid rise” in the previous six months — a 32.5 percent year-over-year gain — owing to a tidal surge of players swamping Final Fantasy XIV, a World of Warcraft-induced phenomena we highlighted earlier this year.
Final Fantasy XIV gamers are dealing with the news that the highly anticipated Endwalker expansion has been postponed until early December as of late night.
The fact that Square Enix is dabbling in the contentious realm of NFT and blockchain is perhaps the most troubling revelation in this study. The firm has already produced its first NFT digital cards and is “considering a strong debut into blockchain gaming,” according to the press statement.
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