SQUARE ENIX HOLDINGS CO., LTD.
Q3 FY2022/3 Financial Results Briefing Session Q&A
Date/Time: February 4, 2022 (Fri); 6:30-7:30 pm (JST)
Main Speaker: Yosuke Matsuda, President and Representative Director
Q: What feedback have you gotten on the Epic Games Store version of “FINAL FANTASY VII REMAKE INTERGRADE,” which you launched in December 2021? Also, why have you only offered it via the Epic Games Store?
A: We have seen a fair response. I cannot go into the specific reasons why we chose the Epic Games Store, but our decision was the outcome of our comparative analysis of a variety of different factors.
Q: It seems like the new smartphone games you launched in Q2 and Q3 are struggling. Did that impact Q3 earnings? Please also tell us about your outlook and strategy for smartphone games going forward.
A: We wrote down the value of some of our titles in Q3. To date, we have primarily used outsourcing to develop our smartphone games, but going forward we want to make changes, including stepping up our internal development efforts.
Q: Starting in mid-December 2021, you suspended sales of the Starter and Complete editions of “FINAL FANTASY XIV” because of server congestion. Given that you resumed sales in late January 2022, is it possible that the sustained booking of revenue from those products will keep MMO earnings high going forward?
A: We believe that we can expect those products to generate a certain amount of revenue in Q4 and beyond. I hope that you will watch for forthcoming information that we provide regarding our intentions for “FINAL FANTASY XIV” and base your earnings estimates on that.
Q: Is it possible that factors in the external environment such as the uptake of next-generation consoles and new titles from your peers could impact the release dates of your own new HD games?
A: We do intend to consider the release dates for our new titles based on conditions such as the semiconductor supply shortage and our peers’ schedules.
Q: Why did you generate more revenue from HD games in Q3 than in Q1?
A: That is due to factors such as the Q3 release of “Marvel’s Guardians of the Galaxy” and other new titles, as well as initiatives we undertook during the holiday season that led to additional sales of existing titles.
Q: With game developer salaries rising globally, what is your thinking on how you should invest in talent?
A: In addition to achieving sales and profit growth, we at the same time want to invest in our human capital, including by providing attractive compensation packages.