Square Enix posts losses of $48m following the release of Marvel's Avengers

Iron Man flies with his hand outstretched, ready for battle
(Image credit: © 2020 MARVEL)

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, 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. 

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.

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 guide.

Vikki Blake
Weekend Reporter, GamesRadar+

Vikki Blake is GamesRadar+'s Weekend Reporter. Vikki works tirelessly to ensure that you have something to read on the days of the week beginning with 'S', and can also be found contributing to outlets including the BBC, Eurogamer, and GameIndustry.biz. Vikki also runs a weekly games column at NME, and can be frequently found talking about Destiny 2 and Silent Hill on Twitter. 

Latest in Action
Tomb Raider
5 years after Avengers, 2 years after its last layoffs, and who knows how long before Perfect Dark and Tomb Raider return, Crystal Dynamics announces another round of layoffs
Naoe looks over at a dense, lush, green forest in Assassin's Creed Shadows from a viewpoint
Getting Assassin's Creed Shadows on PS5 and Xbox Series X was all about adding "dynamism" to the open world, but the devs seem most proud about the trees
Naoe and Yasuke walk in the sunset in a screenshot from Assassin's Creed Shadows
Following Assassin's Creed Shadows controversy, Baldur's Gate 3 publishing director says "every big AAA game could be better," but players shouldn't be mad "just because some dude told you to"
Assassin's Creed Shadows Wanted Status
How to remove Wanted status in Assassin's Creed Shadows
Naoe kills a target with a black and white filter over the camera highlighting the red of blood spray in Assassin's Creed Shadows, with an On The Radar orange frame
Assassin's Creed Shadows "has a little bit of Tarantino flavor", but its real secret ingredient is intrigue: "It's almost like you're watching an episode of Shogun"
God of War
20 years later, God of War's original monster art has been revealed: behold this army of stick figures slapped on a whiteboard, no clue Kratos is coming for them
Latest in News
Tomb Raider
5 years after Avengers, 2 years after its last layoffs, and who knows how long before Perfect Dark and Tomb Raider return, Crystal Dynamics announces another round of layoffs
AI Limit
"AI is not as effective as it might appear": Dev of AI-focused Soulslike RPG says they didn't use any AI-generated content and it can't match "genuine creativity"
Fantastic Four: 1234 #2 cover excerpt
Sue Storm and Namor are officially both in Avengers: Doomsday, and fans are wondering if Reed Richards has something to worry about
The First Berserker: Khazan protagonist
The First Berserker: Khazan isn't even out yet, but the new Soulslike RPG already has over 1,300 94% positive reviews on Steam from early buyers
fool me once
Harlan Coben’s new novel is set to be "more of a sequel" to the hit Netflix series Fool Me Once: "I don’t know any time that’s ever happened"
Naoe looks over at a dense, lush, green forest in Assassin's Creed Shadows from a viewpoint
Getting Assassin's Creed Shadows on PS5 and Xbox Series X was all about adding "dynamism" to the open world, but the devs seem most proud about the trees