Square Enix's game division, Digital Entertainment – HD Games, has posted an operating loss of more than $48 million (¥5 billion/£36 million).
While the publisher stopped short of giving a definitive reason for the loss, the period the financial report reflects includes fiscal information up to the end of September 2020, the same month its expensive, live-service title, Marvel's Avengers, was released.
As detailed by our pals at PC Gamer (opens in new tab), the publisher didn't release the sale figures of Crystal Dynamics' highly-anticipated superhero game, but it's MMO division – which concerns games like Final Fantasy XIV – posted profits across both periods.
Marvel Avengers- it looks like the total cost of the game is closer to $170m-$190m given they only expenses 70% of cost in the qtr plus marketing costs. Why someone didn’t say stop post the multiplayer beta will remain a mystery . Square are adamant they can make a recovery ....November 7, 2020
Japanese-based industry analyst David Gibson posited on Twitter that the loss was driven by Marvel's Avengers as "volumes were 60 per cent of plan", adding it's been implied that the "game cost over $100m to make but only sold 3 m[million] or so. Ouch".
"It looks like the total cost of the game is closer to $170m-$190m given they only expenses 70% of cost in the [quarter] plus marketing costs," Gibson added. "Why someone didn’t say stop post the multiplayer beta will remain a mystery. Square are adamant they can make a recovery…"
In related news, Crystal Dynamics recently confirmed that Marvel's Avengers won't reach PS5, Xbox Series X and Series S until 2021 (opens in new tab).
In a new State of the Game post, the developer confirmed that until the official launch next year, you can still play the game on next-gen consoles via backwards compatibility, by inserting the disc or re-downloading Marvel's Avengers. This will grant faster loading times and increased frame rates, and you'll still be able to play with friends on current-gen consoles.
To see all the other superheroes that will be joining the game over the coming months, check out our Marvel's Avengers game DLC (opens in new tab) guide.