The Amusement

Games Lift: Batch 1 Selected Projects

Gamecity Hamburg announced on August 26, 2020 the five projects chosen for the first batch of its new Games Lift incubator, a program designed to help early-stage Hamburg developers turn game ideas into professional-quality products and enter the games industry.

• Gamecity Hamburg launched the Games Lift incubator in 2020 to provide financial support, infrastructure, and professional mentorship to emerging local game developers.
• Five projects were selected from 16 applicants: Alchymia, Crumbling, Leif's Adventure: Netherworld Hero, Luna Park, and Ninja Brigade.
• Each of the five selected teams receives 15,000 euros in funding, access to a co-working space, and a three-month intensive workshop program.

Square Enix Holdings Financial Results Briefing: FY2020/3

Square Enix Holdings reported financial results for the fiscal year ended March 31, 2020, highlighting a period of mixed performance across its diverse business segments.

• Square Enix's FY ended March 31, 2020 net sales fell ¥10.7 billion year over year to ¥260.5 billion, yet operating income rose ¥8.1 billion to ¥32.7 billion.
• Net income attributable to parent shareholders increased ¥2.0 billion to ¥21.3 billion, so profits grew despite the revenue decline.
• Digital Entertainment, the main revenue driver, generated ¥188.6 billion in net sales (about 72% of the group total), with growth in MMO and mobile led by expansion packs and new titles like "DRAGON QUEST WALK".

Capcom Financial Highlights: Fiscal Year Ended March 31, 2020

Capcom’s financial performance for the fiscal year ended March 31, 2020, demonstrates a strategic shift toward high-margin digital distribution, resulting in record-high profits despite a year-over-year decline in net sales.

• Capcom achieved record-high profits for the fiscal year ended March 31, 2020, with an operating income of 22.83 billion yen, marking seven consecutive years of profit growth.
• The company’s digital sales ratio reached 76.8 percent, reflecting a successful strategic shift toward high-margin digital distribution despite a decline in total net sales to 81.59 billion yen.
• Monster Hunter World: Iceborne sold over 5 million units, while the base game Monster Hunter: World surpassed 15.5 million cumulative units, serving as the primary drivers for the Digital Contents segment.

Sega Sammy Holdings 3Q Fiscal Year 2020 Results: Major Questions

The third-quarter fiscal year 2020 briefing for Sega Sammy Holdings provides an overview of the company’s operational performance and strategic outlook across its Pachislot, Pachinko, and Entertainment Contents segments.

Creative Transfer Games: Hamburg

Gamecity Hamburg announced on February 19, 2020 that applications were open for the Creative Transfer funding program, aimed at helping small German game developers present their studios, games, and projects at national and international conventions and conferences.

• The Creative Transfer program provides German independent game studios with subsidies covering up to 80% of travel expenses for industry conventions.
• Eligible studios must be headquartered in Germany and maintain a staff of no more than 20 permanent employees.
• Funding caps are set at 1,000 euros for domestic events and 2,000 euros for international gatherings.

Financial Results: Nine-Month Period Ended December 31, 2019

Square Enix Holdings Co., Ltd. reported its financial results for the nine-month period ending December 31, 2019, demonstrating significant growth in profitability compared to the same period in the previous fiscal year.

• Square Enix reported a strong nine-month performance for the period ending December 31, 2019, with operating income rising to 27.7 billion yen, a significant increase from 12.3 billion yen in the same period of the previous fiscal year.
• The Digital Entertainment segment's MMO business drove growth through the release of expansion packs for 'FINAL FANTASY XIV' and 'DRAGON QUEST X,' which led to a sharp increase in subscriber numbers.
• Games for smart devices and PC browsers saw improved year-over-year performance, bolstered by the successful releases of 'Romancing SaGa Re;univerSe' and 'DRAGON QUEST WALK.'

Capcom Consolidated Financial Results: 9 Months FY2019

Capcom’s consolidated financial results for the nine-month period ending December 31, 2019, demonstrate a strategic shift toward high-margin digital distribution, resulting in improved profitability despite a decline in overall net sales.

• Capcom achieved a 37.1% increase in operating income to 18,448 million yen and a 42.3% rise in net income to 13,065 million yen for the nine months ending December 31, 2019, despite a 13.6% decline in net sales.
• The company’s shift toward high-margin digital distribution successfully offset a 13.6% drop in total net sales, as evidenced by the Digital Contents segment reporting a 30.1% increase in operating income despite a 15.2% decline in segment sales.
• Monster Hunter World: Iceborne served as a primary performance driver with over 3.2 million units shipped, supported by continued sales of catalog titles Resident Evil 2 and Devil May Cry 5.

Square Enix Holdings 2Q FY2020/3 Financial Results Briefing

Square Enix Holdings reported positive financial growth for the first half of the fiscal year ending March 31, 2020.

• Square Enix reported strong H1 FY2020/3 growth with net sales of ¥120.7 billion (up 8.2% YoY) and operating income of ¥15.9 billion (up 62.9% YoY).
• The Digital Entertainment segment's MMO sub-segment and mobile titles like 'Dragon Quest Walk' and 'Romancing SaGa Re;univerSe' were primary drivers of financial performance.
• The HD Games sub-segment recorded an operating loss due to development cost amortization and a ¥2.35 billion impairment loss on content production.

Financial Results Briefing Session: Six-Month Period Ended September 30, 2019

Square Enix Holdings Co., Ltd. reported its financial results for the six-month period ending September 30, 2019, reflecting a period of growth driven by strong performance in its digital entertainment and publication segments.

• Square Enix reported a strong first half for the fiscal year ending March 31, 2020, with net sales reaching 120.7 billion yen and operating income rising to 15.9 billion yen, a significant increase from 9.7 billion yen in the same period the previous year.
• The Digital Entertainment segment's MMO business saw growth in both net sales and operating income, driven by the release of the 'Final Fantasy XIV: Shadowbringers' expansion pack and an increase in paying subscribers.
• Games for smart devices and PC browsers performed well, with net sales and operating income rising due to the continued success of 'Romancing SaGa Re;univerSe' and the September 2019 launch of 'Dragon Quest Walk'.

Capcom Consolidated Financial Results: 6 Months Ended September 30, 2019

Capcom’s consolidated financial results for the six-month period ending September 30, 2019, demonstrate a strategic shift toward high-margin digital sales, resulting in significant profit growth despite a decline in total net sales.

• Capcom achieved significant profit growth for the six months ending September 30, 2019, with net income rising 43.7% to 9,846 million yen and operating income increasing 33.2% to 13,992 million yen.
• Total net sales declined 14.0% to 37,272 million yen, a result of the company's strategic transition from physical package sales to higher-margin digital distribution.
• The Digital Contents segment drove performance, as operating income for the division grew 23.4% despite a 14.7% decline in segment net sales.

Square Enix Holdings Financial Results Briefing: Fiscal Year Ended March 31, 2019

Square Enix Holdings reported financial results for the fiscal year ended March 31, 2019, characterized by a divergence between top-line growth and bottom-line contraction.

• Square Enix grew net sales 8.2% to ¥271 billion in the fiscal year ended March 31, 2019, but operating income fell 35.7% to ¥24.5 billion and net income attributable to parent shareholders dropped 28.5% to ¥18.4 billion.
• Revenue growth was driven by major HD game releases, namely Kingdom Hearts III, Shadow of the Tomb Raider, and Just Cause 4.
• The profit decline was attributed to high development and release costs, underperformance in the smart device and PC browser sub-segment, and the discontinuation of operations at Studio Istolia.

Square Enix Holdings Financial Results: Fiscal Year Ended March 31, 2019

Square Enix Holdings reported financial results for the fiscal year ended March 31, 2019, reflecting a period of revenue growth tempered by declining operating margins.

• Square Enix reported net sales of 271.0 billion yen for the fiscal year ended March 31, 2019, but operating income fell significantly to 24.5 billion yen, down from 38.1 billion yen in the previous year.
• The Digital Entertainment segment, the company's largest revenue driver, saw operating income drop from 43.4 billion yen to 29.0 billion yen, resulting in an operating margin contraction of 8.5 percentage points to 14.2%.
• Digital sales in the HD games segment have grown by an annual average of approximately 40% over the past five years, with digital downloads accounting for 40% of total HD sales in FY2019/3.