Square Enix has reportedly lost $48million following ‘Marvel’s Avengers’ release

Square Enix’s HD games division reported earnings following Marvel’s Avengers release show a $62million loss for the company.

Read More: There’s something sadly soulless about video game digitalisation

The latest earnings report from the company reveals that the first half of the fiscal year showed growth, while a $62million loss was shown after the release of Marvel’s Avengers, per Video Games Chronicle.

During that same period – three months which ended on September 30 – its also been reported that the overall net sales for the Japanese company were ¥23.7billion, showing a 30 per cent decrease from the previous quarter which boasted ¥34.1billion.

The first quarter had Final Fantasy VII Remake launching on a single platform, whilst Marvel’s Avengers released on multiple systems, indicating a loss for the company.

Games industry analyst, David Gibson, also took to Twitter to report new details on the company’s losses, including the potential development costs of Marvel’s Avengers. Gibson stated that Square Enix reported a ¥6.5billion “loss for HD Games driven by Marvel Avengers” and that the company “would not say how many sold but that volumes were 60% of plan.”

According to Gibson, the details imply that the “game cost over $100m to make but only sold 3m or so”. He later added: “The total cost of the game is closer to $170m-$190m given they only expenses 70% of cost in the [quarter] plus marketing costs.”

Marvel Avengers- it looks like the total cost of the game is closer to $170m-$190m given they only expenses 70% of cost in the qtr plus marketing costs. Why someone didn’t say stop post the multiplayer beta will remain a mystery . Square are adamant they can make a recovery ….

— David Gibson (@gibbogame) November 7, 2020

The company recently spoke out about the dwindling player numbers for Marvel’s Avengers and said “confident” it will see players returning to the game, following reports of a diminishing player base. It later released a blog post confirming the delay of the next-gen versions and Kate Bishop expansion, with details on how the game will move forward in the future.

In great detail, it explained how it aims to push the game forward and will focus on four pillars to do so: performance and stability, multiplayer and matchmaking, rewards and late-game content. It stated that the problems highlighted do not align with the company’s “value of craftsmanship” and will be adding new “community-driven features” to reinvigorate the game.

In NME’s review of Marvel’s Avengers, the game was described as “movie magic [that] turns to dust thanks to [an] uninspired grind”, but praised its “fantastic storyline and well-realised characters”.

The post Square Enix has reportedly lost $48million following ‘Marvel’s Avengers’ release appeared first on NME Music News, Reviews, Videos, Galleries, Tickets and Blogs | NME.COM.

Read more: nme.com