Square Enix‘s share price in Japan has dropped by nearly 15% following the company’s latest earnings release.
The publisher reported its Q2 2023 earnings on Friday, during which it stated that revenue had increased around 14% year-on-year but profits had dropped around 65%.
When the Tokyo Stock Exchange closed on Friday, Square Enix’s share price sat at ¥6,366. When it opened earlier today, however, the price had dropped to ¥5,566 and stayed around this figure throughout the day, dropping to ¥5,457 at one point.
This is the lowest the company’s share price has been since May 2022 and, according to Bloomberg, its worst intraday drop in three years.
Bloomberg also claims that one of the reasons for Square Enix’s underwhelming financials is the launch of Final Fantasy 16.
The publication cites three separate sources who attended Square Enix’s post-earnings call, all of whom claimed president Takashi Kiryu said the game’s initial sales, in Bloomberg’s words, “did not meet the high end of the company’s expectations”.
Kiryu also reportedly said that “slow adoption of the PS5” was also a limiting factor in Final Fantasy 16’s sales, and that the end of hardware shortages should open up opportunities to boost software sales.
PS5 exclusive Final Fantasy 16 shipped and digitally sold three million copies within a week of its release in June, according to publisher Square Enix.
The figure means Final Fantasy 16’s release sales were roughly in line with those of Final Fantasy 7 Remake’s launch, which managed around 3.5 million copies in ten days (albeit on PS4, which had a larger installed base).
The last numbered instalment, Final Fantasy 15, remains the series’ fastest-selling entry with 5 million units shipped and sold digitally in its first 24 hours alone. This was across multiple platforms, however.