Full Financial Results Briefing Session for the nine-month period ended December 31, 2018 ("1-3QFY2019/3"): http://www.hd.square-enix.com/eng/news/pdf/19q3Outline.pdf
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Slides:
On 3Q 2019 (Oct-Dec):
Q4 2019 (Jan-Mar 2019) outlook:
Q&A:
On why Shadow of the Tomb Raider and Just Cause 4 got off to a weak start:
On planning to consolidate their existing 11 Busines Divisions (internal teams at SE Japan) into 4 business units at the end of 2019:
On their FY2020/3 (Fall 2019) release schedule:
Refresher that since last year SE has been expecting a huge spike in operating income for FY2020 (April 2019-March 2020), which I can only imagine is due to FFVII Remake and/or Avengers releasing? I've been long speculating that FFVII Part 1 could release Late 2019/Early 2020.
Also, David Gibson, an investor working in Tokyo who assumedly attended that briefing session on Feb 5 posted this afterwards:
FFVIIR-1 THIS YEAR, BALEE
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Slides:
On 3Q 2019 (Oct-Dec):
Our 3Q plan was premised on the HD Games sub-segment offsetting sluggishness in the Games for Smart Devices/PC Browsers sub-segment, but results were disappointing as we sold fewer copies of the HD game "JUST CAUSE 4" on launch than we had expected. Both net sales and operating income declined YoY at the Digital Entertainment segment. 3Q at the HD Games sub-segment was marked by growth in the holiday season of digital sales, especially of "SHADOW OF THE TOMB RAIDER," and by the launch of "DRAGON QUEST BUILDERS 2." Meanwhile, while we released "JUST CAUSE 4," we sold fewer units on launch than we had anticipated and were therefore unable to offset charges such as the amortization of development costs.
Q4 2019 (Jan-Mar 2019) outlook:
---I will next discuss our full-year outlook. In 4Q, we expect to achieve significant improvement in earnings with the help of titles such as "KINGDOM HEARTS III" and "Romancing SaGA Re;universe." Global shipments (including digital downloads) of "KINGDOM HEARTS III" have already exceeded 5 million units, and we expect sales volume to grow even further by the end of the fiscal year. In addition, "Romancing SaGA Re;universe," which we launched in December, is outperforming our expectations.
Q&A:
On why Shadow of the Tomb Raider and Just Cause 4 got off to a weak start:
Q: Why did "SHADOW OF THE TOMB RAIDER" and "JUST CAUSE 4" get off to a weak start? If initial sales volumes are lower than they traditionally have been but digital sales are extending the lifetimes of games, don't you need to change the timing of your advertising efforts?
A: We think the main reason is that we were unable to provide an experience that was novel enough that players would choose to buy them before any of the other numerous major titles on the competitive landscape. Also, while it is true that we are seeing a shift away from sales of boxes to digital downloads, with this many titles competing with one another, initial sales are definitely an important element in increasing user awareness. For that reason, we do need to engage in a certain amount of advertising just ahead of a new title's launch.
On planning to consolidate their existing 11 Busines Divisions (internal teams at SE Japan) into 4 business units at the end of 2019:
Q: At your 2Q earnings briefing, you discussed changing your policy to developing smart device titles, but how has that gone?
A: The titles we launched in 3Q were already set for release prior to the change in our approach, so they are not reflective of any change. As of FY2020/3, we plan on reorganizing and consolidate the 11 existing business divisions at SQUARE ENIX CO., LTD. into four business units in order to increase the efficiency of our workflows, make more effective use of our resources, and consolidate our expertise with the aim of improving profitability.
On their FY2020/3 (Fall 2019) release schedule:
Q: What can you tell us about the timeline for your FY2020/3 releases?
A: I cannot go into any detail at the moment, but I believe we will be able to make various announcements in the leadup to this year's E3.
Q: How likely are you to reach your operating income target of ¥40-50 billion with the lineup you have planned for FY2020/3?
A: We believe operating income of ¥40-50 billion will be attainable in FY2020/3 with the lineup we currently have planned, but we still see risk of deviating from our target depending on when we release new titles and on how our development efforts progress.
Refresher that since last year SE has been expecting a huge spike in operating income for FY2020 (April 2019-March 2020), which I can only imagine is due to FFVII Remake and/or Avengers releasing? I've been long speculating that FFVII Part 1 could release Late 2019/Early 2020.
Also, David Gibson, an investor working in Tokyo who assumedly attended that briefing session on Feb 5 posted this afterwards:
FFVIIR-1 THIS YEAR, BALEE
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