Square Enix hopes DLCs will help with profits
Square Enix has revealed that it has yet to recoup the development costs for Marvel’s Avengers, helmed by Crystal Dynamics.
This is according to Square Enix president Yosuke Matsuda, who spoke about the game at a recent financial briefing. “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,” he said.
However, the company still has hope that the game will eventually turn a profit through the release of forthcoming DLCs, such as the previously announced Kate Bishop pack. “We hope to make up for slow initial sales by offering ample additional content to grow our sales,” Matsuda added.
Later, during the Q&A portion of the briefing, the Matsuda also explained that without the losses attributed to Marvel’s Avengers, the HD Games segment would have turned a profit. “Absent factors associated with Marvel’s Avengers, the sub-segment would have been in the black,” Matsuda said.
“In addition to the amortisation 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.”
It was previously reported that Square Enix had lost an estimated US$62million from July to September 2020, the quarter it released Marvel’s Avengers.
Last month, Crystal Dynamics announced that the next-gen version of Marvel’s Avengers would be pushed back to 2021. The developer said that the delay would give its team “time to deliver a next-gen experience showcasing all that this game is meant to be”.