Square Enix’s recent financial report revealed that despite strong game sales, profits were lower than anticipated. This was attributed to factors like high development costs for Final Fantasy XVI and lower-than-expected sales of Final Fantasy VII Rebirth, leading to a decline in the HD Games segment’s profitability.
Capcom has experienced a decade of consistent profit growth, largely driven by the digital shift in gaming. The company has leveraged the convenience and affordability of digital sales, achieving a massive 93% digital revenue share in FY23. Capcom’s strategy of aggressive discounting for its vast game catalog has been key to capturing new users and driving this growth.
