Square Enix physical game sales down in Q1, but digital still 'strong'

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Square Enix has released its latest quarterly results for the three months ending June 30th 2017, and the company's net sales increased by 11.3 per cent year-on-year to reach 57bn, the company has reported. Operating income, meanwhile, rose by 43.9 per cent to 12.8bn.

The company's digital entertainment division also showed a growth in net sales last quarter, increasing by 17.7 per cent to hit 44.1bn, while operating income rose to 13.7bn – an increase of 44.9 per cent year-on-year.

However, Square Enix notes this was partly down to the "strong download sales" of previously released catalogue titles such as Nier: Automata, as revenue from packaged games, including both new first and third party titles, actually fell last quarter, prompting a decline in net sales.

This shouldn't be too much of a problem next quarter, however, as Square Enix will finally be able to take into account the already phenomenal sales of Dragon Quest XI: Echoes of an Elusive Age, which released on July 29th in Japan to the tune of 2m sales across its 3DS and PS4 formats. A western release is expected sometime next year.

Square Enix's smart devices and PC division continues to do well, however, with its line-up of mobile titles showing "strong performances" compared to this time last year. Sales from Final Fantasy XIV's latest Stormblood expansion also resulted in a growth of net sales and operating income, as well as an increase in the number of monthly subscribers.