Square Enix from a investor relations briefing held back in Nov 6th, have outlined some intriguing content, especially for Marvel Avengers.
With the Avengers being hot property and striking gold for Disney. The Marvel Avengers videogame was picked up by Square Enix and the potential/protected, to be a big hit on consoles didn’t exactly go to plan.
The Avengers fell quite short when it launched and was under par to Square Enix projections in terms of sales.
Yosuke Matsuda of Square Enix said:
“The HD Games sub-segment posted an operating loss as initial sales of “Marvel’s Avengers” were lower than we had expected and unable to completely offset the amortization of the game’s development costs. In the second half of the fiscal year (“2H”), we hope to make up for slow initial sales by offering ample additional content to grow our sales.”
Fast forward to the Q&A about Marvel Avengers:
Q: “I estimate that the HD Games sub-segment booked an operating loss of around ¥7 billion in 2Q. Would the sub-segment have turned a profit if sales of “Marvel’s Avengers” had covered the amortization of its development costs? The loss seems too great to be explained solely by costs associated with that title outweighing its sales in 2Q. Are there any other factors we should assume contributed to the operating loss? Also, should we assume that there is still a fair amount of that title’s development costs to be amortized in 3Q?”
A: “Absent factors associated with “Marvel’s Avengers” the sub-segment would have been in the black. In addition to the amortization of that game’s development costs, another significant factor associated with the title was the fact that we undertook a major advertising campaign at the time of its launch to make up for delays in our marketing efforts resulting from the COVID-19 pandemic. There is a certain amount of development costs still to be amortized in 3Q, but we want to recoup it by growing our sales going forward.”
Q: “What do you expect the profitability of “Marvel’s Avengers” to look like in 3Q?”
A: “Our intention is first and foremost to work to expand sales in order to improve its profitability.”
Q: “You say that initial sales of “Marvel’s Avengers” were lower than you had expected. Were the reasons for that not something you could have anticipated and done something about?”
A: “We engaged in ample preparations ahead of the launch, but it is true that there were aspects in which we were wanting. We intend to leverage the lessons we learned from this experience in future game development efforts.”
Kate Bishop is the latest content to be heading to Marvel Avengers. The protégé of Hawk-Eye coming December 8th.
Source: Square Enix