Square Enix FY2003 Results Briefing

Square Enix achieved record financial performance for the fiscal year ending March 2004, reporting 63,202 million yen in total sales and an operating profit of 19,398 million yen. This 30.7% operating margin was primarily driven by the success of the Final Fantasy XI online service and the expansion of the Fullmetal Alchemist franchise within the publishing division. Despite incurring non-recurring costs associated with post-merger office consolidation and the bankruptcy of its subsidiary DigiCube, the company successfully stabilized its operations and established a foundation for international growth.

Looking toward the fiscal year ending March 2005, the company projects continued momentum with forecasted sales of 76 billion yen and an operating profit of 21.5 billion yen. The long-term strategic vision centers on a transition toward a network-centric business model. By anticipating that ubiquitous connectivity will diminish the importance of traditional vertical integration, the company aims to leverage its position as a content provider to capture greater value in an increasingly interconnected global market.

To execute this strategy, the company is moving away from sequential content porting in favor of a polymorphic content approach. This methodology prioritizes the creation of high-concept intellectual property designed for simultaneous deployment across multiple platforms. Supporting this shift are investments in community management for online services and strategic technological partnerships, such as the collaboration with Intel. Furthermore, the company is aggressively expanding its global footprint by securing top-tier talent in North America, Europe, and China, ensuring that its development and business structures are fully integrated to meet the demands of a diverse, international audience.