Daily Archives: February 10, 2025

Business, Games, Gaming, News

SHIFT UP continues the financial grind with Stella Blade heading to its 1st anniversary

Shift Up, the South Korean game developer behind Stellar Blade and Goddess of Victory: Nikke, has reported record-breaking revenue and operating profit for the year 2024. The company’s financial success can be attributed to the strong performance of these two titles, which have captured the attention of gamers worldwide.

Stellar Blade, an action-adventure game set in a post-apocalyptic world, was released on PlayStation 5 on April 26, 2024. The game follows the protagonist, Eve, as she embarks on a mission to reclaim Earth from monstrous creatures known as Naytibas. Stellar Blade has been praised for its stunning visuals and engaging combat mechanics, which emphasize precise timing and strategic parrying.

In 2024, Stellar Blade generated $43 million in royalties for Shift Up, thanks to constant updates, collaborations (such as the Nier: Automata DLC), and a dedicated player base. The game’s success on PlayStation 5 has paved the way for a highly anticipated PC release in 2025, which is expected to further boost its revenue.

Meanwhile, Goddess of Victory: Nikke is an immersive sci-fi RPG shooter that has taken the mobile gaming market by storm. Released on Android and iOS in 2022 and later on Windows in 2023, the game features a gacha system and a variety of unique characters with distinct combat specialties5. Players command a squad of Nikkes, humanoid weapons created to reclaim Earth from the Rapture invasion.

In 2024, Goddess of Victory: Nikke generated $105.4 million in revenue, accounting for 69.6% of Shift Up’s total revenue. Despite fierce competition in the mobile gaming market, the game managed to retain its player base through regular events, collaborations, and updates1. Shift Up also plans to officially launch the game in China in 2025, with pre-registrations already meeting expectations.

Shift Up’s total revenue for 2024 reached $151.4 million, a 30.4% increase from the previous year. The company’s operating profit was $102.3 million, up 33.8% year-over-year, while net profit grew 33.7% to $98.2 million. These impressive financial results mark a record year for Shift Up in terms of revenue and operating income1.

Looking ahead, Shift Up plans to expand its workforce to 400-420 employees by the end of 2025. The company is also working on a new game titled Project Witches, which is expected to launch after 2027. Additionally, Shift Up will continue to support and update Stellar Blade and Goddess of Victory: Nikke, ensuring that both games remain popular among players.

Shift Up’s success in 2024 is a testament to the company’s innovative game design and ability to engage players with captivating content. With Stellar Blade and Goddess of Victory: Nikke leading the charge, Shift Up is well-positioned to continue its growth and dominance in the gaming industry.

Business, Games, Gaming, News

Square Enix’s Latest Earnings Report: A Mixed Bag of Results

Square Enix recently released its financial earnings report for the nine months ending December 31, 2024. The report paints a mixed picture of the company’s performance, with some segments showing growth while others experienced declines.

Financial Overview

Square Enix reported a decrease in net sales, which fell to ¥248.5 billion from ¥257.6 billion the previous year. This decline was primarily attributed to weakness in existing titles within its mobile and PC browser sub-segment. Despite this, the company saw a 70.3% increase in operating profit for its HD games subsection, reaching ¥4.6 billion ($30.2 million). This growth was driven by lower development costs and advertising expenses, as well as stronger-than-expected sales of Dragon Quest 3 HD-2D.

Game Performance Highlights

  1. Dragon Quest 3 HD-2D: This remake exceeded expectations, contributing significantly to the HD games sub-segment’s profitability. The game’s modernized graphics and nostalgic appeal resonated well with fans, leading to stronger sales than initially anticipated.
  2. Final Fantasy 14: Dawntrail: Released in July 2024, this expansion for Final Fantasy 14 saw a 26.4% rise in net sales for the MMO sub-segment, reaching ¥44 billion ($288.6 million). The expansion’s success helped offset some of the declines in other areas1.
  3. Mobile and PC Browser Games: This sub-segment faced significant challenges, with a 58.5% decline in operating profit to ¥5.6 billion ($36.7 million). Despite the launch of the puzzle RPG Emberstoria in November 2024, the segment struggled due to weakness in existing titles and a valuation write-down associated with content production.

Looking ahead, Square Enix remains optimistic about its future prospects, with no changes to its forecast for the fiscal year announced during its FY24 results last May. The company is banking on upcoming titles and continued growth in its successful segments to drive future performance.

Business, Games, Gaming, News

Nihon Falcom will keep going despite Q1 2025 could have been better

Nihon Falcom recently released their first-quarter earnings for 2025. The company reported a significant decline in revenue, which was JP¥374.0 million (approximately $2.47 million), a 46% decrease compared to the same quarter in 2024. The earnings per share (EPS) also saw a drop to JP¥7.88 (approximately $0.05), compared to JP¥29.09 (approximately $0.19) in Q1 2024.

Focus on Games Highlights

Nihon Falcom has been a pioneer in the JRPG genre, with notable series like Ys, Dragon Slayer, and The Legend of Heroes. Here are some highlights of their recent focus on games:

  1. Ys Series: The Ys series continues to be a flagship franchise for Nihon Falcom, with recent titles like Ys VIII: Lacrimosa of Dana and Ys IX: Monstrum Nox receiving critical acclaim. These games have been well-received for their engaging storylines and polished gameplay, contributing significantly to the company’s product sales.
  2. The Legend of Heroes: This series has expanded significantly, with titles like Trails of Cold Steel IV and Trails into Reverie gaining popularity among fans. The latest entry, The Legend of Heroes: Kai no Kiseki, has sold over 8 million copies across various platforms, boosting the company’s product sales.
  3. Multi-Platform Releases: Nihon Falcom has been focusing on releasing their games across multiple platforms, including PlayStation, Nintendo Switch, and PC, to reach a broader audience. This strategy has helped increase their market presence and attract new players.
  4. Western Localization: The company has put greater emphasis on English translations and releases of their games, making them accessible to Western audiences. This effort has paid off, as Western fans have shown strong interest in Nihon Falcom’s titles, contributing to their global reach.

Despite the recent dip in earnings, Nihon Falcom’s dedication to innovation and quality has solidified their reputation as a leading developer in the JRPG genre. Their upcoming releases, including Ys X and a new installment in the Trails series, are expected to further boost their performance in the coming quarters.

Editorial, Games, Gaming, News, Playstation

A perfect moment to remember the 2011 Playstation Network crisis

The PlayStation Network (PSN) hacking incident of 2011 remains one of the most significant cybersecurity breaches in gaming history. This event not only disrupted services for millions of users but also exposed the vulnerabilities inherent in even the most robust digital infrastructures.

As we reflect on this infamous incident, it’s crucial to understand its lasting effects and how it correlates with the recent PSN outage on February 8, 2025.

The 2011 PlayStation Network Hack: A Timeline of Chaos

The hacking incident began in April 2011 when an “external intrusion” compromised the personal details of approximately 77 million PSN accounts. The breach exposed sensitive information such as usernames, passwords, email addresses, physical addresses, and even credit card details. The attack lasted for 23 days, during which Sony had to take the PSN offline to rebuild its security infrastructure.

The aftermath saw Sony offering compensation to affected users and facing scrutiny from government officials worldwide.

The immediate impact of the hack was a massive disruption of services. Users were unable to access their accounts, purchase games, or engage in online multiplayer activities. The breach also led to a significant loss of trust in Sony’s ability to protect user data, resulting in a tarnished brand image. Financially, the incident cost Sony an estimated $171 million, including compensation payouts and the expenses associated with enhancing security measures.

In the long term, the hack prompted a reevaluation of cybersecurity practices within the gaming industry. Sony implemented stricter security protocols, including the encryption of credit card information and the introduction of two-factor authentication for account logins. These measures have since become standard practices across the industry, highlighting the importance of robust cybersecurity in protecting user data.

The February 8, 2025 PSN Outage: Echoes of the Past

Fast forward to February 8, 2025, and the PSN experienced another significant outage. This recent disruption, which lasted nearly 20 hours, saw users unable to access the PlayStation Store, PlayStation Plus, and multiplayer games. The timing of the outage, coinciding with a promotional weekend for a popular game, only added to the frustration of millions of gamers.

While Sony has yet to confirm the cause of the outage, many users and experts speculate that it could be the result of another cyberattack. The parallels between the 2011 hack and the recent outage are striking, with both incidents resulting in prolonged service disruptions and raising concerns about the security of user data.

And labeling as “operational issue” and the implicit attempt that this incident will quiet down with time, doesn’t help the “gaming PTSD” that some of those of have the 2011 incident still fresh even almost 14 years later.

The Importance of Vigilance and Preparedness

The recurring nature of these incidents underscores the need for constant vigilance and preparedness in the face of cyber threats. For users, it’s essential to monitor account activity and be wary of suspicious communications requesting personal information. Sony’s recommendations during such events include checking bank statements for unauthorized transactions and avoiding sharing personal information in response to unsolicited requests.

For companies like Sony, investing in advanced cybersecurity measures and maintaining transparent communication with users during outages are critical steps in rebuilding and sustaining trust. The gaming community’s resilience and adaptability in the face of these challenges are also commendable, as gamers continue to find ways to stay connected and engaged despite disruptions.

The infamous PlayStation Network hacking of 2011 and the recent February 8, 2025 outage serve as stark reminders of the ever-present threat of cyberattacks. These incidents highlight the importance of robust cybersecurity measures, proactive monitoring, and transparent communication. As the gaming industry continues to evolve, so too must its approach to protecting user data and ensuring uninterrupted service. By learning from the past and preparing for the future, we can hope to minimize the impact of such disruptions and maintain a secure and enjoyable gaming environment for all.