Square Enix reports loss of $48 million thanks to Marvel’s Avengers
Square Enix has reported a rather staggering loss of ¥5 billion (roughly $48 million) in its HD Games segment following the underwhelming performance of Marvel’s Avengers.
Developed by Crystal Dynamics, Marvel’s Avengers released back in September to mixed critical reception, and it seems this has led the live service experience to underperform and fall to attract a consistent audience of players.
This information comes from the company’s latest financial results, which seems to indicate that Marvel’s Avengers sold around 3 million copies by the end of September, so this number could have increased in the weeks and months since. Regardless, it isn’t performing to the expectation put forward by Square Enix.
While total sales numbers weren’t disclosed by the publisher, it is speculated they are 60% of the expected total. Tokyo-based analyst Daniel Gibson provides a more nuanced perspective on the situation.
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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 is adamant it can turn Marvel’s Avengers around with the upcoming next-gen release and continued schedule of new heroes and other content. Kate Bishop is confirmed to arrive in the coming months, while a number of other characters have been datamined by players such as Black Panther and She-Hulk. Time will tell whether it can foster a more active audience.
Here’s what we thought of the superhero adventure in our 3.5/5 review: “Marvel’s Avengers has proven to be a pleasant surprise, even if its live service identity arguably hinders the true potential of its world, story and characters. Engaging combat and rewarding progression have established a solid foundation for Crystal Dynamics to build upon with new heroes and scenarios in the months and years to come.”
Despite Marvel’s Avengers, Square Enix still made a healthy profit compared to 2019 thanks to the likes of Final Fantasy XIV and Final Fantasy 7 Remake, both of which enjoyed huge success this year. The latter even earned our Game of the Year award.
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Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
Professional conduct
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
