Square Enix Reports Loss of 6.5 Billion Yen

After a disasterous launch for Marvel's Avengers, gaming giant Square Enix has reported a massive revenue loss.

Lewis Webster
24th November 2020
Japanese game giant Square Enix has reported a loss of around 6.5 billion Yen in their latest financial report. The news comes not long after the release of the very promising Marvel’s Avengers video game that has failed to turn in a reasonable profit for the company.

Launched back in September of this year, Marvel’s Avengers had a noticeably tumultuous launch; selling strong early on, the game began to plummet in popularity and attention, which was surprising given the intensity of the game’s promotion. “While the challenges 2020 has surfaced are many, it’s also instilled a strength in us; to reassemble a team divided by geography and life circumstances, and come back stronger, united by a mission to do right by you,” said Scot Amos, the head of the game’s developers, Crystal Dynamics.

Recent data has shown that the Avengers video game has lost up to 96% of its player-base within the first two months since launch. Costing 100 million US dollars to develop, the game has only sold around 3 million copies, which allegedly has made up a significantly large portion of Square Enix’s 6.5 billion Yen profit loss.

While the game does feature controversial micro-transactional features for cosmetic items and the like, it is likely still not enough to generate an acceptable amount of revenue. A major content update was also delayed recently, possibly explaining the rapid loss of interest and drop-offs in player numbers.

Recent data has shown that the Avengers video game has lost up to 96% of its player-base within the first two months since launch.

Launching the game so close to the release of next-generation consoles has likely also had a significant impact upon the reception of the game and in turn, sales. Whether or not the sale of Marvel’s Avengers will improve with its upcoming release on next-generation hardware is yet to be seen. Only time will tell.

[Featured Image: Flickr]
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AUTHOR: Lewis Webster
I'm a 20 year-old first year student currently studying English Literature with Creative Writing. Particularly interested in gaming, TV, music and film.

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