r/ffxivdiscussion: Square Enix MMO Net Sales for each patch since 2.0 release (graph)
Lots of good statistical data in this thread on /r/ffxivdiscussion concerning SE's net sales for each patch since 2.0 release. Take a look at all the graphs and charts the author put together.
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Original Post:
I collected a lot of data from Square Enix's Presentation Materials (https://www.hd.square-enix.com/eng/i...planatory.html) and after cleaning it up, made a graph showing the net sales for the MMO division corresponding to each patch of FFXIV, as well as a chart showing Square Enix's net sales with MMOs, HD games and Mobile/Browser games in the same periods.
Square Enix MMO Net Sales for each patch since 2.0 release (graph in billions of JPY - https://i.imgur.com/PzT6eLd.png)
Square Enix's net sales with MMOs, HD games and Mobile/Browser games in the same periods (chart in billions of JPY - https://i.imgur.com/ncqKNOh.png)
Square Enix MMO Net Sales for each patch since 2.0 release (graph in millions of USD - https://i.imgur.com/EYLPR8e.png)
Square Enix's net sales with MMOs, HD games and Mobile/Browser games in the same periods (chart in millions of USD - https://i.imgur.com/lBetpde.png)
• Why are there so many patches clumped together in one date?
The dates correspond to the date in which the financial department makes a report of the financial results. If one or more patches release in that three-month period, all of those patches will be listed in the data-point. Meaning, between the starting point and the endpoint of that datapoint, the revenue that was collected corresponds to the listed patches.
• Why not Operating Income instead of Net Sales?
Because the specific information of Operating Income for the department of MMOs isn't always available. In some years (especially from March 2024 onwards) they have very good information transparency, but in other years even the net sales information is hard to get.
• What is the meaning of Net Sales if you don't have Operating Income?
Operating Income would subtract the costs and expenses. While Net Sales shows the consumer adherence to the product (and indirectly the intent of purchase of the consumer base of the product), Operating Income takes that and subtracts Cost of Sales, adds Reversal of provision for sales returns, then subtracts Provision for sales returns, Packaging freight charge, Advertising expense, Sales promotion expense, Allowance for doubtful accounts, Compensation for directors, Salaries, Provision for bonuses, Net periodic pension costs, Provision for directors’ retirement benefits, Welfare expense, Rental expense, Commission fee, Depreciation and amortization, and Other unlisted expenses (I was never able to find what they mean by 'Other').
In turn, the important information that Operating Income could give us would be the cost of development that they had for the specific release of which that financial report pertains to. Still, however, that information is available for only a few years. If there is interest, I can provide a table or graph with that limited information.
• The numbers on the source presentations sometimes are much bigger than the ones in the Graph. Why?
Because in some years Square was sneaky and instead of providing the specific amount of revenue for that timeframe of three months, they informed the year-to-date. In some other years, they did that without even informing that they were doing year-to-date. There is a good portion of years where they also cleanly and neatly provide the specific information for that period of three months only, and not the year-to-date. That was nervewracking.
• Is there any other interesting information in the presentations?
Yes, the total sales of Digital Entertainment (HD Games + MMO + Browser/Mobile) over different regions (Americas, Europe, Japan, other Asian countries). It's possible to see in some quarters the sales growing in Japan but not growing in the Americas, or vice-versa. (https://i.imgur.com/XVEqw4Y.png)
• I don't like graphs and charts. Do you have a table?
Sure, here you go. (https://i.imgur.com/C6PmlQU.png)
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Notable Comments:
I think people are confused how positive this actually is. You can't compare the numbers directly given how much the Yen has devalued vs the dollar from EW > DT. The dollar is up about 36% higher today than it was three years ago and this is a massive source of problems for japanese companies. In short:
"From late 2020 to first half 2024, the yen depreciated against the dollar by about 60% (From 101 yen per dollar in the second half of 2020 to 162 yen per dollar in the first half of 2024.), giving rise to serious concern in Japan about long-term prospects for the currency.
The sharp fall in the value of the currency has led some companies, including Modec, to stop presenting their financial statements in Japanese yen"
The game has probably lost around about a third of its revenue from the EW peak.
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Sidenote: the revenue from the Mogstation is included in there, which might explain the data-points in which there are drops from active players (looking at Lucky Bancho) while at the same time the MMO net sales goes up instead of down.
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Some of this change (a loss in real dollar terms, as other comments have pointed out) might also involve declines in DQX or especially FFXI, as those are also under the MMO division umbrella and have their finances basically rolled-in with XIV's. I know that XI in particular has had a rough last few years with player activity slowly decreasing as the last story content was finished and there being a general feeling of repetition and little to do except the same few endgame events with super high requirements (solo-unfriendly) once you've achieved what you wanted. A drop in the bucket compared to XIV but this is not just solely a XIV graph. In fact an individual XI subscriber is probably worth a bit more than a XIV one given how XI almost requires a few extra dollars a month in equipment slot subscription expansions to be playable at an endgame level. But that might even out by someone in XIV that makes a cash shop purchase or two every so often. Hard to say.
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And yet here we are, with one piece of new content every 4 months, and the company is making close to record profits.
The correlation between profits and development just isn't there, they make more and don't re-invest it.
Reply: Oh we can check that by paying attention to the Content Production Account. On the other hand, the financial information available doesn't discriminate the Content Production Account between MMO, HD Games and Mobile/Browser. Looking at the massive revenue from Mobile though it does seem to me that, at least from June 2019 onwards, the revenue from Mobile has been kind of soft carrying the investments in the other two.
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Interesting to see the game is at a peak of income right now while it feels like literally no one is happy or playing the game. Perception on social media really is just... Fake.
Reply: I said as much elsewhere, but the chart is misleading. The yen is worth a lot less today than the EW peak. The game is probably down about a third from there.
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Source:
https://www.reddit.com/r/ffxivdiscus...atch_since_20/
Feel free to visit the thread yourselves or discuss this topic below, cheers.