Category Archives: Business

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.

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.

Sega Q3 2025 report doesn’t reveal Metaphor: ReFantazio initial performance of a full quarter

Sega Sammy Holdings Inc. recently released its Q3 2025 earnings report, revealing a mix of successes and challenges for the gaming giant. The report, released on February 7, 2025, showcased impressive sales figures for some of their flagship titles, while also highlighting areas that need improvement.

One of the standout performers in Sega’s portfolio was Sonic X Shadow Generations. This enhanced remaster of the beloved platformer Sonic Generations has surpassed 2 million copies sold worldwide since its launch in October 2024. The game received rave reviews for its new Shadow Generations campaign, which allowed players to delve deeper into the backstory of the enigmatic Shadow the Hedgehog.

The success of Sonic X Shadow Generations can be attributed to its nostalgic appeal and the introduction of new gameplay mechanics, such as Chaos Control and Chaos Snap, which set Shadow apart from Sonic. The game’s sales were further boosted by the release of the Sonic the Hedgehog 3 movie, which reached $460 million in worldwide box office revenue.

Metaphor: ReFantazio: A Strong Debut

Another notable mention in Sega’s earnings report was Metaphor: ReFantazio, a JRPG developed by Atlus. The game made a remarkable debut, selling 1 million copies on its first day of release. While Sega did not provide updated sales figures for Metaphor: ReFantazio in the report, the initial numbers indicate a strong start for the title.

Metaphor: ReFantazio has been praised for its engaging story, rich character development, and innovative combat system. The game’s success is a testament to Atlus’ ability to create compelling RPG experiences that resonate with fans.

Challenges and Cancellations

Despite the successes, Sega’s earnings report also highlighted some challenges. The company announced the cancellation of Football Manager 25, citing external discussions and careful consideration with Sega. This decision reflects the company’s commitment to focusing on its most promising projects and ensuring the highest quality for its fans.

As Sega moves forward, the company is optimistic about its future prospects. With strong sales from Sonic X Shadow Generations and the promising start of Metaphor: ReFantazio, Sega is well-positioned to continue its growth in the gaming industry. The company’s focus on innovative gameplay, engaging stories, and cross-media synergy will be key to its success in the coming years.

Hi-Rez Studios and SMITE: Navigating Through Layoffs and Uncertainty

Hi-Rez Studios, known for creating engaging multiplayer games like SMITE, Paladins, and Rogue Company, has recently faced significant challenges that have led to a series of layoffs. These layoffs have not only affected the development teams but also raised concerns about the future of their games.

Founded in 2005 by twins Todd and Erez Reznik, Hi-Rez Studios has built a reputation for nurturing long-lasting and inclusive gaming communities. Over the years, the studio has expanded its portfolio with titles like SMITE, Paladins, and Rogue Company, each contributing to its growth and success.

The Layoffs and Their Impact

In early February 2025, Hi-Rez Studios announced a new wave of layoffs that impacted developers across SMITE’s design, production, and esports teams. According to reports, around 50-60 developers were affected, with the studio ending development on SMITE 1, Paladins, and Rogue Company to prioritize the development of SMITE 2. This decision has left many fans and employees concerned about the future of these beloved games.

The layoffs at Hi-Rez Studios are part of a broader trend in the gaming industry, where studios are facing financial pressures and the need to streamline operations. Hi-Rez’s CEO, Stewart Chisam, previously explained that the layoffs were necessary to ensure the long-term success of SMITE 2. However, the decision to cut staff has been met with mixed reactions from the gaming community.

The Future of SMITE

Despite the layoffs, SMITE 2 remains the primary focus of Hi-Rez Studios. The new game, built on Unreal Engine 5, offers significant improvements in graphics and gameplay, promising a more immersive experience for players1. However, the development of SMITE 2 has not been without its difficulties, and the recent layoffs have added to the uncertainty surrounding the game’s future.

Hi-Rez Studios and SMITE have come a long way since their inception, but the recent layoffs have highlighted the challenges faced by the studio. While the future remains uncertain, Hi-Rez’s commitment to its games and communities gives hope for a brighter future. As SMITE continues to evolve, it will be exciting to see what new adventures and improvements Hi-Rez has in store for its dedicated community.

The first earning report of Kadokawa Corporation with Sony owning 10% of shares

Kadokawa Corporation recently released its earnings report for the third quarter of fiscal year 2024, and the results have been quite promising. However, a significant development within the company has garnered considerable attention: Sony’s strategic investment in Kadokawa and its implications for FromSoftware, a subsidiary of Kadokawa known for its critically acclaimed video games.

Sony’s Stake in Kadokawa: In a strategic move, Sony has increased its ownership stake in Kadokawa to 10%, making it the largest external shareholder. This investment marks a significant milestone in the relationship between the two companies, which have a history of collaboration in various entertainment sectors, including gaming and media production.

FromSoftware’s First Earnings Report Under Sony’s Influence: With Sony’s backing, FromSoftware has reported its first earnings under this new partnership. The results have been encouraging, reflecting the potential synergies between the two companies.

  • Revenue Boost: FromSoftware’s revenue saw a remarkable increase, driven by the successful launch of new game titles and the continued popularity of existing franchises like Dark Souls and Elden Ring.
  • Market Expansion: Leveraging Sony’s extensive distribution network and marketing prowess, FromSoftware has been able to expand its market reach, particularly in North America and Europe.
  • Enhanced Development Capabilities: The collaboration has enabled FromSoftware to access additional resources and expertise, leading to improvements in game development processes and overall product quality.

Financial Performance: Kadokawa’s overall financial performance for the third quarter ended December 31, 2024, has also shown positive growth.

Highlights:

  • Sony’s Stake: Sony has increased its stake in Kadokawa Corporation to 10%, making it the largest shareholder.
  • FromSoftware’s Earnings: With Sony’s backing, FromSoftware, known for titles like Dark Souls and Elden Ring, is expected to see significant growth in its earnings.
  • Strategic Alliance: The partnership aims to enhance digital content and entertainment offerings, including joint ventures in live-action films, TV dramas, and anime.

Financial Performance:

  • Revenue: Kadokawa reported a revenue of ¥21.12 billion for the third quarter ended December 31, 2024, which is approximately $139.8 million based on the current exchange rate of 1 USD = 151.41 JPY.
  • Earnings: The company posted earnings of ¥1.75 billion for the trailing twelve months (TTM) ending December 31, 2024, which translates to approximately $11.5 million.
  • Year-over-Year Growth: Kadokawa’s earnings for 2024 (TTM) showed a significant increase of 35.67% compared to the previous year.

Kadokawa’s strategic alliance with Sony and other partners has played a pivotal role in driving growth and innovation across its business segments.

  • Business Alliances: In addition to the partnership with Sony, Kadokawa has formed a business alliance with Kakao piccoma to expand its digital content and entertainment offerings.
  • Capital Alliances: The company has issued new shares through third-party allotments to strengthen its capital base, ensuring sustainable growth and resilience.

Looking ahead, Kadokawa remains optimistic about its growth prospects, driven by its strategic alliances and continued focus on digital content and entertainment. The partnership with Sony, in particular, is expected to yield long-term benefits, enhancing Kadokawa’s position in the global entertainment industry.

FromSoftware, as a key subsidiary, stands to gain significantly from this collaboration, with the potential for further innovation and success in the gaming sector.

In conclusion, Kadokawa’s recent earnings report and strategic alliance with Sony underscore the company’s commitment to growth and innovation. The positive impact on FromSoftware’s performance highlights the potential for continued success in the dynamic and competitive entertainment industry.

Take-Two Interactive doubles down on Grand Theft Auto VI release on earnings report

Take-Two Interactive, one of the leading names in the gaming industry, recently announced its financial results for the third quarter of fiscal year 2025. The company reported net bookings of $1.37 billion, a 3% increase compared to the previous year. This performance was within the company’s projected guidance range, and Take-Two reaffirmed its full-year net bookings outlook of $5.55 billion to $5.65 billion.

The earnings report highlighted the strong performance of several core franchises, including NBA 2K25, Grand Theft Auto Online, and Red Dead Redemption 2. The company’s CEO, Strauss Zelnick, expressed confidence in the upcoming release schedule, which includes highly anticipated titles such as Sid Meier’s Civilization VII, Mafia: The Old Country, and Grand Theft Auto VI (GTA 6).

GTA 6 Release Update

During the earnings call, Zelnick provided an update on the much-anticipated Grand Theft Auto VI. The game is still on track for a Fall 2025 release, although Zelnick mentioned the possibility of a slight “slippage”. He emphasized that while the company feels confident about the release date, they are cautious about making absolute guarantees2.

The announcement has generated significant excitement among fans, as GTA 6 is expected to be a major blockbuster. The company has not yet revealed the exact release date, but they assured investors that more information will be provided in due course.

In addition to GTA 6, Take-Two also announced the release of Borderlands 4 sometime in 2025. The company’s robust pipeline includes other titles such as Project ETHOS and CSR 3, further solidifying its position as a powerhouse in the gaming industry.

Take-Two Interactive’s Q3 2025 earnings report paints a promising picture for the company’s future. With strong financial performance and an exciting lineup of upcoming releases, the company is poised for continued growth. The anticipation surrounding GTA 6 is a testament to the enduring popularity of the franchise and the high expectations of gamers worldwide.

Bandai Namco grew at Q3 2025

Bandai Namco Holdings Inc. recently released its consolidated financial report for the third quarter (nine months) of the fiscal year ending March 31, 2025. Here’s a detailed breakdown of their earnings:

  • Net Sales: $6.29 billion, a significant increase of 23.8% compared to the same period last year.
  • Operating Profit: $1.34 billion, showing a remarkable growth of 129.0%.
  • Recurring Profit: $1.41 billion, up by 106.9%.
  • Profit Attributable to Owners of Parent: $1.00 billion, an increase of 113.1%.
  • Basic Earnings per Share (EPS): $1.97.
  • Diluted Earnings per Share (EPS): $1.97.

Financial Position (in USD)

  • Total Assets: $7.50 billion as of December 31, 2024.
  • Net Assets: $5.50 billion as of December 31, 2024.
  • Equity Ratio: 73.2% as of December 31, 2024.

Cash Dividends (in USD)

  • Annual Cash Dividends: $0.60 per share for the fiscal year ending March 31, 2025.

Bandai Namco has revised its projections for the fiscal year ending March 31, 2025, with an optimistic outlook for continued growth in net sales and profits.

Bandai Namco’s impressive financial performance reflects its strong market position and successful strategies. The company’s focus on innovation and expansion is likely to drive further growth in the coming years.

EA had a thing to say about is Q3 2025 for Dragon Age: The Veilguard

Electronic Arts (EA) recently announced its Q3 FY25 earnings, revealing a mix of successes and challenges across its portfolio. The company reported net bookings of $2.215 billion for the quarter, with notable performances from several franchises.

EA SPORTS FC 25 continued its strong momentum, achieving record success with the Team of the Year event, driving engagement levels above expectations. The franchise has grown more than 70% over the last five fiscal years, making it one of the biggest sports entertainment properties in the world.

American Football also saw double-digit growth in weekly active users year-over-year, and remains on pace to surpass $1 billion in net bookings for fiscal year 2025.

However, not all games performed as expected. Dragon Age: The Veilguard, despite receiving positive reviews from critics and players, did not resonate with a broad audience. EA CEO Andrew Wilson attributed this to the game’s lack of live service features, which are increasingly sought after by modern gamers. The game’s sales performance missed projections by 50%, reaching only about 1.5 million players.

Despite these challenges, EA remains confident in its long-term strategy and has announced a $1 billion accelerated stock repurchase program, bringing total stock repurchases to $2.5 billion within the first year of its $5 billion authorization.

Despite the strong performance in certain areas, EA faces challenges in maintaining its growth trajectory. Analysts have noted that EA’s revenue guidance for the next quarter is lower than expected, with adjusted earnings projected at $3.08 per share.

The company has missed Wall Street’s revenue estimates four times over the last two years, indicating potential volatility in its financial performance.

AMD closes the year 2024 in green and with official release of RDNA4

AMD reported record revenue of $7.7 billion for Q4 2024, which was a 24% increase year-over-year. The company also achieved a gross margin of 51% and a non-GAAP gross margin of 54%. For the full year 2024, AMD reported record revenue of $25.8 billion, a 14% increase from the previous year. The company’s operating income for the year was $1.9 billion, and net income was $1.6 billion.

AMD’s CEO, Dr. Lisa Su, highlighted that 2024 was a transformative year for the company, with significant growth in their Data Center segment and strong earnings expansion.

The company also saw record revenue from its AMD Instinct accelerator products.

Of course RDNA4 and the Radeon RX 9070 XT family topic could not be avoided on the conference call with AMD’s inverstor.

And with this, Lisa Su confirmed the launch of their next-generation RDNA 4 architecture and the Radeon RX 9070 XT graphics card. Scheduled for release on March 6, 2025, these GPUs are set to revolutionize the mainstream and mid-range gaming market.

A review of all that is currently public knowledge…

RDNA 4 marks a significant leap forward for AMD, focusing on improved ray tracing performance and AI-powered upscaling technology. The architecture will utilize a 4nm TSMC process node, enhancing density and efficiency3. Key features include:

  • Optimized Compute Units (CUs): RDNA 4 introduces optimized CUs for better performance.
  • Supercharged AI Compute: Enhanced AI capabilities for advanced upscaling and image stabilization.
  • Improved Ray Tracing: Significantly better ray tracing performance compared to previous generations.
  • Better Media Encoding: Enhanced media encoding quality for a smoother gaming experience.

Radeon RX 9070 XT: Specifications and Performance

The Radeon RX 9070 XT is AMD’s flagship offering in the RDNA 4 lineup. Here are the key specifications:

  • Stream Processors: 4,096 SPs
  • Compute Units: 64 CUs
  • Memory: 16GB GDDR6 with a 256-bit memory bus
  • Memory Speed: 20 Gbps
  • Bandwidth: 640 GB/s
  • Base / Boost Clocks: 2.40 GHz / 2.97 GHz
  • PCIe Support: PCIe 5.0

The RX 9070 XT is designed to compete with NVIDIA’s GeForce RTX 5070 Ti, offering top-tier performance at a more affordable price. AMD’s focus on mainstream gaming means the RX 9070 XT aims to provide high-quality 4K gaming experiences with improved ray tracing and AI-powered upscaling.

The statement that you wanted to hear from Twitch CEO

The livestreaming industry has been in a state of constant evolution, with Twitch long serving as the dominant force in the space. However, as competition heats up, other platforms have begun to challenge Twitch’s supremacy in unique ways.

In a recent interview with Fast Company, Twitch CEO Dan Clancy addressed the biggest rivals in the industry: YouTube, TikTok, and Kick.

His candid remarks offer a fascinating look into the state of livestreaming today.

Clancy didn’t mince words when discussing the competitive landscape. In the interview, he remarked:

“[TikTok] was the first platform that didn’t just copy Twitch. YouTube just made Twitch on YouTube. Facebook just made Twitch on Facebook. Kick downright copied the site.”

This statement raises an interesting question: Have these platforms merely imitated Twitch, or have they introduced innovative features that set them apart?

While Clancy suggests YouTube simply replicated Twitch, the reality is more nuanced. YouTube offers several advantages that Twitch lacks, particularly in terms of video quality and accessibility. Features such as the ability to pause and rewind livestreams, higher resolution streaming using advanced codecs like H.265 and AV1, and robust content archiving make YouTube a compelling alternative for certain creators.

However, despite these advantages, many users and streamers wish YouTube would take inspiration from Twitch in other areas. Its chat functionality, live discovery experience, and overall engagement tools lag behind Twitch’s, making it a less interactive experience for livestream communities.

Then, a focus on TikTok which I think it was unavoidable.

Unlike other competitors, TikTok has introduced a radically different take on livestreaming. TikTok’s algorithm-driven content discovery allows streamers to reach new audiences in a way that Twitch does not. Unlike Twitch’s channel-based model, where viewers typically follow a handful of familiar streamers, TikTok’s approach is designed to surface new content dynamically, making it easier for up-and-coming creators to gain traction.

This shift in how livestreaming is discovered and consumed has made TikTok a formidable competitor in capturing audience attention.

Another expected reaction was Clancey’s Point of View about Kick and for the CEO, Kick is a “downright copied the site” is not without merit, as Kick’s interface, chat features, and streaming model bear a strong resemblance to Twitch.

However, it is accepted that Kick differentiates itself by offering significantly higher revenue splits for creators, an appealing prospect for those looking to maximize earnings. While Twitch’s community and long-standing reputation keep it in the lead, Kick’s aggressive monetization policies make it an enticing alternative.

Beyond competing with direct rivals, Clancy emphasized that Twitch’s real competition isn’t just other livestreaming services—it’s the entire media landscape. He explained:

“What we’re doing is competing for your time.”

This broader perspective acknowledges that Twitch is vying against not just YouTube, TikTok, and Kick, but also traditional entertainment forms such as television, movies, and social media platforms. With attention spans shrinking and digital entertainment becoming more fragmented, Twitch must find innovative ways to keep users engaged and returning to the platform.

A major factor keeping Twitch relevant is its deeply rooted sense of community. Clancy illustrated this by sharing the experience of popular streamer LilyPichu:

“LilyPichu is the best example, because she liked the fact that she was getting this check, but she was so looking forward to the day when the contract ended, because then she could come back. It’s because of that sense of belonging and home. That’s not just for their viewers, it’s also for them.”

This anecdote underscores the emotional connection that streamers and their audiences develop on Twitch. Unlike other platforms, where livestreaming is often just one aspect of a broader content ecosystem, Twitch thrives on fostering direct interaction and loyalty between streamers and viewers.

This sense of belonging translates to strong subscription metrics and engagement rates, making it harder for competitors to pull streamers away permanently.

The Future of Livestreaming: Where Does Twitch Go from Here?

As Twitch navigates an increasingly competitive landscape, it must continue to innovate while leveraging its community-driven strengths. Enhancements in monetization options, better content discovery tools, and improvements in stream quality could help Twitch maintain its dominance. Meanwhile, rivals like YouTube, TikTok, and Kick will continue refining their own strategies, ensuring that the battle for livestreaming supremacy remains intense.

One thing is certain: the livestreaming industry is evolving rapidly, and the platforms that prioritize both creator support and viewer experience will be the ones to thrive. Whether Twitch can maintain its lead will depend on its ability to adapt while staying true to the community-first ethos that has defined it from the start.