SQUARE ENIX HOLDINGS CO., LTD.
1H FY2020/3 Financial Results Briefing Session Q&A
Date/Time: November 7, 2019 (Thurs); 7:00-8:00 pm (JST)
Main Speaker: Yosuke Matsuda, President and Representative Director
Q: What is your outlook for the earnings contribution from “FINAL FANTASY XIV” in 2H and beyond?
A: Historically MMO sales have declined over time, but we look for this release to outperform the momentum generated by the previous expansion.
Q: Please tell us about the scale of sales for “DRAGON QUEST WALK” and about sales trends for other titles.
A: We are not disclosing the exact figures, but “DRAGON QUEST WALK” made a fair contribution to earnings.
Q: Why did the HD Game sub-segment generate an operating loss even though sales were higher in 2Q than 1Q?
A: “DRAGON QUEST XI S: Echoes of an Elusive Age – Definitive Edition” did not debut until September 27, so we saw greater impact from the amortization of its development costs than from its earnings. Also, we posted an impairment loss on our content production account. We cannot offset these factors with repeat sales.
Q: The average sales price in the HD Games sub-segment was lower than in 1Q. Do you look for continued impact in 1H and beyond?
A: Nintendo Co., Ltd. was the overseas publisher for “DRAGON QUEST XI: Echoes of an Elusive Age S,” which was released in 2Q. As such, overseas sales figures for that title included deductions for licensing fees, which made the average sales price seem low.
Q: Please tell us what you expect from arcade operations at the Amusement segment in 2H and beyond.
A: While impact from the higher consumption tax has been limited, conditions were challenging in October due to typhoons and floods. We believe that we will be able to keep business results brisk on the whole, excluding unexpected factors such as natural disasters.
Q: How much was posted as the impairment loss on the content production account?
A: We posted ¥2.35 billion in 1H.