Game Publishing
Documents
2016 Annual Report
To spread happiness across the globe by providing unforgettable experiences To spread happiness across the globe by providing unforgettable experiences This philosophy represents our company’s mission and the beliefs for which we stand. The Square Enix Group provides high-quality content, services, and products to help those customers create their own Each of our customers has his or her own definition of happiness.
- Net sales for the fiscal year ended March 31, 2016, exceeded ¥200 billion for the first time, reaching ¥214,101 million, a 27.5% increase from the prior fiscal year, and operating income increased by 58.4% to ¥26,018 million.
- The MMO domain, specifically "DRAGON QUEST X" and "FINAL FANTASY XIV," generated stable earnings, with new content and expansion packs released in the fiscal year ended March 2016 successfully retaining and attracting players.
- The Amusement Business Segment saw brisk performance with year-on-year existing revenue topping 100%, driven by strong demand from foreign tourists, especially from Asia, and the successful rollout of an e-money system.
- The company plans to expand localization efforts beyond EFIGS (English, French, Italian, German, Spanish) to include Chinese (simplified), Arabic, and Portuguese to access growing consumer markets in China, the Middle East, and Latin America.
- Capital expenditures decreased by ¥176 million to ¥5,872 million in the fiscal year ended March 31, 2016, primarily due to the relocation of subsidiaries' offices.
Dragon Quest: Reimagined
The document presents a comprehensive overview of several flagship role‑playing franchises, focusing on recent releases and cumulative sales achievements. It highlights the launch of “Dragon Quest: Reimagined” on February 5, 2026, available in a bundled package across Nintendo Switch 2, PlayStation 5, Xbox Series X|S, Steam, and Microsoft Store. The title is positioned as a high‑definition 2D remake developed by KLabGames, with a projected global shipment of over 95 million units as of June 2025. The text also references the broader “Dragon Quest” series, noting its continuous evolution since 1986 and its adoption of modern technologies such as 3D mapping, cloud gaming, and cross‑platform connectivity.
The “Final Fantasy” section cites cumulative sales of 204 million units for the series, emphasizing its long‑standing appeal since 1987 and its expansion into Western markets. Platforms listed include PlayStation 5, Steam, Epic Games Store, and Nintendo Switch 2, with a focus on the franchise’s visual innovation and narrative depth. The document underscores the series’ global reach, with sales data aggregated across multiple regions.
Additionally, the “Kingdom Hearts” entry reports 38 million units shipped worldwide by June 2025, noting its collaborative origin with Disney and Square Enix. The overview includes platform details for the original PlayStation 2 release and mentions forthcoming titles slated for various consoles. Overall, the document serves as a market snapshot of key RPG franchises, detailing launch dates, platform coverage, sales milestones, and development partnerships across the industry.
- The Final Fantasy series has reached 204 million units in cumulative global sales since its 1987 debut.
- Dragon Quest: Reimagined, a high-definition 2D remake developed by KLabGames, launched on February 5, 2026, for Nintendo Switch 2, PlayStation 5, Xbox Series X|S, Steam, and Microsoft Store.
- The Dragon Quest franchise reported a projected global shipment of over 95 million units as of June 2025.
- The Kingdom Hearts franchise, a collaboration between Disney and Square Enix, has shipped 38 million units worldwide as of June 2025.
- Major RPG franchises are increasingly utilizing modern technologies including 3D mapping, cloud gaming, and cross-platform connectivity to maintain market relevance.
2025 Annual Report
Purpose C O N T E N T S Creating New Worlds With Boundless Imagination 03 Financial Highlights Creating New Worlds With Boundless Imagination 03 Financial Highlights 04 A Message to Our Stakeholders to Enhance People’s Lives.
- In the fiscal year ended March 2025, Square Enix Holdings recorded net sales of ¥324.5 billion (a decline from the previous fiscal year) but an increase in profit, with operating income at ¥40.5 billion, ordinary income at ¥40.9 billion, and profit attributable to owners of parent at ¥24.4 billion.
- The Game sub-segment saw increased net sales and profit due to the release of "FINAL FANTASY XIV: Dawntrail" and "The Apothecary Diaries" series, despite a decline in the Games for Smart Devices/PC Browsers sub-segment due to weak existing titles and the absence of prior year royalty income.
- The Merchandising segment reported net sales of ¥19.0 billion (up 0.8% from the prior fiscal year) and operating income of ¥6.0 billion (up 7.2%), driven by strong sales of new character merchandise related to popular Group IP.
- Square Enix Holdings is collaborating with the Matsuo Lab at the University of Tokyo’s School of Engineering on a sponsored course focused on simulations and deep learning, and with the Graduate School of Film and New Media at Tokyo University of the Arts on a joint research project.
- The company has an alliance with gumi Inc. for the development and distribution of mobile online and blockchain games, and another alliance to study establishing a dedicated platform for blockchain games.
Results: What's Next - Focus on Cash Flow
The analysis outlines a strategic pivot toward cash‑flow optimization for the company, driven by recent shifts in the VR market and a need to secure additional financing. Revenue growth in 2024 reached PLN 190.4 million, largely supported by the launches of Project Maverick and Project Echo, as well as the January 2024 release of Bulletstorm VR. However, profitability suffered due to write‑offs of the Red and Bifrost projects and a decline in 2Q revenues linked to Gemini negotiations, resulting in an EBITDA of PLN 12.9 million and a net loss of PLN 175.3 million.
Operationally, the organization is trimming non‑essential spend and restructuring office space and team composition to reduce overhead. The workforce, which expanded from 612 employees in 2020 to 756 by the end of 2024, is being realigned with a focus on critical projects. The company has ceased further investment in VR development following the 2024 platform subsidy withdrawal, redirecting resources toward AAA and compact‑AAA titles.
Future initiatives include two new work‑from‑home projects with Sony Interactive Entertainment, the self‑publishing of Project Bison (the final VR title from PCF Group) slated for Q4 2025, and an early‑access release of Lost Rift in 2025. Krafton’s waiver of ROFO/ROFR rights for Bifrost and Victoria frees the company to seek external publishers. Scenario analysis is underway to identify additional funding sources, ensuring liquidity while maintaining a lean operational model across global studios in Warsaw, Montreal, Newcastle, Dublin, Katowice, and Rzeszów.
- The company reported 2024 revenue of PLN 190.4 million, but incurred a net loss of PLN 175.3 million and an EBITDA of PLN 12.9 million due to project write-offs and revenue declines.
- Management is pivoting away from VR development following the withdrawal of platform subsidies, shifting focus toward AAA and compact-AAA titles.
- The organization is implementing a cost-reduction strategy that includes restructuring office space and realigning the workforce, which had grown to 756 employees by the end of 2024.
- Krafton has waived its ROFO/ROFR rights for the Bifrost and Victoria projects, allowing the company to pursue external publishing partners for these titles.
- Future production includes two new projects with Sony Interactive Entertainment, the self-publishing of the final VR title Project Bison in Q4 2025, and an early-access release of Lost Rift in 2025.
Półroczne sprawozdanie zarządu z działalności Grupy Kapitałowej: H1 2021
WARSZAWA, 29 WRZ ŚNIA 2021 ROKU sp ółka akcyjna ~~2 1~~ Za okres 1.01.2021 – 30.06.2021 r. 29 WRZE ŚNIA PCF Półroczne sprawozdanie z działalności Grupy Kapitałowej PCF Group Spółka Akcyjna 2 0 oraz spółki PCF Group Spółka Akcyjna za okres 1.01.2021 – 30.06.2021 r. GROUP (dane w tys. zł, chyba że zaznaczono inaczej) ~~2 1~~ Niniejsze Półroczne sprawozdanie Zarządu z działalności Grupy Kapitałowej PCF Group S.A.
- PCF Group S.A. acquired 100% of Game On Creative Inc. for PLN 29,369,385.59 on April 27, 2021, and indirectly acquired the Phosphor Games, LLC development team (now People Can Fly Chicago, LLC) on April 23, 2021, which began operations on May 1, 2021.
- The company increased its share capital by PLN 7,754.28 to PLN 599,004.52 through the issuance of 387,714 Series D ordinary bearer shares at an issue price of PLN 75.75 per share, with the subscription agreement signed on May 31, 2021.
- PCF Group S.A. began developing a new self-published game using new intellectual property in May 2021, following the strengthening of its development team and acquisition of production and publishing competencies in April 2021.
- The game 'Outriders', released on April 1, 2021, did not generate royalty payments for PCF Group S.A. from Square Enix Limited for the period of April 1 to June 30, 2021, indicating that net sales did not cover the publisher's costs, and the game did not achieve a Metacritic score high enough for increased royalty percentages.
- Tangible fixed assets increased by PLN 5.8 million to PLN 9.1 million by June 30, 2021, and right-of-use assets increased by PLN 13.9 million to PLN 25.5 million, primarily due to the acquisition of Game On Creative Inc. and the recognition of a new office lease in Montreal.
Śródroczne skonsolidowane sprawozdanie finansowe: Q1 2022
(dane w tys. zł, chyba że zaznaczone inaczej) AL. SOLIDARNOCI 171 TEL +48 22 887 34 30 (dane w tys. zł, chyba że zaznaczone inaczej) Grupa Kapitałowa PCF Group Spółka Akcyjna – wybrane dane w przeliczeniu na EUR PLN EUR od 01.01 do od 01.01 do od 01.01 do od 01.01 do 31.03.2022 r. 31.03.2021 r. 31.03.2022 r. 31.03.2021 r.
- PCF Group's net profit for Q1 2022 was 13,931 thousand PLN, a significant increase from 7,818 thousand PLN in Q1 2021.
- Total revenues for Q1 2022 reached 50,354 thousand PLN, up from 30,871 thousand PLN in Q1 2021, primarily driven by 'Produkcja na zlecenie' (production for hire) segment.
- The company's equity increased to 275,995 thousand PLN as of March 31, 2022, from 259,542 thousand PLN on December 31, 2021.
- Basic and diluted earnings per share (EPS) rose to 0.47 PLN in Q1 2022, compared to 0.27 PLN in Q1 2021.
- PCF Group's core business is video game production, and its operations do not exhibit seasonality or cyclicality in the interim period.
Półroczne sprawozdanie Zarządu z działalności Grupy Kapitałowej PCF Group S.A.: 1 stycznia 2024 – 30 czerwca 2024
WARSZAWA | 30 WRZENIA 2024 ROKU PEOPLE PÓEROCZNE SPRAWOZDANIE ZARZADU Z DZIAEALNOSCI GRUPY KAPITALOWEJ PCF GROUP S.A. ORAZ SPÓEKI PCF GROUP S.A. ZA 0KRES 01.01.2024 - 30.06.2024 za okres 01.01.2024 – 30.06.2024 r. (dane w tys. zł, chyba że zaznaczono inaczej) Niniejsze półroczne sprawozdanie z działalności Grupy Kapitałowej PCF Group S.A. i spółki PCF Group S.A. za okres 01.01.2024 – 30.06.2024 r. zostało sporządzone na podstawie § 70 ust. 1 pkt 4, 6, 7 oraz § 71 ust.
- PCF Group S.A. reported a 29% increase in sales revenue, reaching PLN 70.1 million in H1 2024, up from PLN 54.3 million in H1 2023, driven by the release of Bulletstorm VR and revenue from Project Maverick, despite a decrease in revenue from Project Gemini.
- The cost of services sold increased by 134% to PLN 84.4 million in H1 2024 (from PLN 36.0 million in H1 2023), primarily due to increased costs associated with Project Maverick and Bulletstorm VR production.
- PCF Group S.A. terminated two revolving credit agreements with Bank Pekao S.A. totaling PLN 30 million and EUR 4.426 million, effective September 2024, without having utilized any of the credit.
- The company signed a short-term executive agreement on January 30, 2024, with Square Enix Limited to continue development on Project Gemini, following the expiration of the previous agreement, to finalize strategic discussions.
- PCF Group S.A. faces significant revenue concentration risk, with ongoing production and publishing agreements for Project Gemini (Square Enix Limited), Project Maverick (Microsoft Corporation), and Project Echo (Krafton Inc.).
Annual Financial Report: PCF Group 2024
ZA ROK OBROTOWY ZAKONCZONY 31 GRUDNIA 2024 ROKU wybrane dane w przeliczeniu na EUR PLN EUR 31.12.2024 r. 31.12.2023 r. 31.12.2024 r. 31.12.2023 r. Sprawozdanie z sytuacji finansowej Aktywa 315 161 502 508 73 756 115 572 Zobowiązania długoterminowe 7 303 12 382 1 709 2 848 Zobowiązania krótkoterminowe ...
- PCF Group experienced a significant net loss of EUR 53,106 in 2024, worsening from a loss of EUR 14,277 in 2023.
- The company's operating loss also substantially increased to EUR 55,351 in 2024 from EUR 18,395 in 2023.
- Despite the losses, sales revenue grew from EUR 26,585 in 2023 to EUR 38,673 in 2024.
- Net cash flow from operating activities increased significantly to EUR 12,146 in 2024 from EUR 4,873 in 2023.
- PCF Group is exposed to currency risk as most costs are in PLN while most revenues are in EUR and USD, though a contract with Square Enix Limited for "Project Gemini" includes provisions against EUR/PLN exchange rate changes.
Letter to Shareholders: 2024
The letter explains that 2024 was a challenging year for the video‑game industry and for PCF Group S.A., prompting decisive actions to protect financial stability. In April, the company discontinued the Dagger project after a partner withdrawal and recorded a 100 % write‑off of its costs, followed by the cancellation of Red in September. These decisions reduced consolidated earnings for the first half of 2024 and lowered fixed‑asset values by PLN 7.7 million. The board also halted work on Victoria and Bifrost in December, laying off over 120 employees; a PLN 154.964 million impairment was booked for Bifrost, while Victoria’s costs were retained due to an upcoming early‑access release.
To counter market headwinds, the board launched a strategic options review in August aimed at securing external investment or restructuring. The effort failed, leaving the group to reassess short‑ and long‑term plans. Concurrently, the company tightened its self‑publishing pipeline, focusing on work‑for‑hire (WFH) contracts. In early 2024, a short‑term agreement with Square Enix for Gemini led to a workforce reduction of 30 staff, yet the project’s revenue only covered direct costs. New WFH deals were secured with Krafton (Echo), Sony Interactive Entertainment (Delta), and Microsoft (Project Maverick), bolstering revenue streams.
The VR segment was largely exited, with Incuvo’s Bison slated as the final title. Game On, another subsidiary, saw limited improvement in 2024‑25. Overall, the letter acknowledges losses and staff cuts but stresses a commitment to rebuilding through strategic partnerships, focused development on AAA action titles, and continued investment in high‑quality games for a global audience.
- PCF Group S.A. underwent a massive restructuring in 2024, cancelling four major projects (Dagger, Red, Victoria, and Bifrost) and recording a PLN 154.964 million impairment for Bifrost alone.
- The company significantly reduced its workforce, laying off over 120 employees in December following the cancellation of Victoria and Bifrost, in addition to 30 staff cuts earlier in the year related to the Gemini project.
- Financial stability was severely impacted by project cancellations, including a 100% write-off of Dagger costs and a PLN 7.7 million reduction in fixed-asset values during the first half of 2024.
- The company has pivoted its business model toward work-for-hire (WFH) contracts, securing new partnerships with Krafton (Echo), Sony Interactive Entertainment (Delta), and Microsoft (Project Maverick) to stabilize revenue.
- A strategic review initiated in August to seek external investment or restructuring failed, forcing the company to abandon its VR segment and narrow its focus to AAA action titles.
Raport Bieżący Nr 1/2021: Przesunięcie Daty Premiery Gry Outriders
The report informs stakeholders that Square Enix Limited has postponed the release of its title “Outriders.” The publisher announced that a free demo will be available on 25 February 2021, and the official launch date has been moved from 2 February to 1 April 2021. The demo is intended to provide players with several hours of gameplay, covering both cooperative and single‑player modes across all four character classes, to aid in purchase decisions. The information was received by the board of PCF Group S.A. on 6 January 2021, and the notice is issued under Article 17(1) of the MAR regulation. The scope covers the Polish market and pertains exclusively to the “Outriders” title, with no broader industry implications noted. No survey or statistical methodology is described; the update relies solely on publisher communication. The key outcome is a two‑month delay in launch, accompanied by an early demo release aimed at maintaining consumer interest and supporting sales conversion.
- Square Enix Limited has postponed the official release date of the game 'Outriders' from 2 February 2021 to 1 April 2021.
- A free demo for 'Outriders' will be released on 25 February 2021 to assist consumer purchase decisions.
- The demo will feature several hours of gameplay, supporting both single-player and cooperative modes across all four character classes.
- The board of PCF Group S.A. received official notification of the delay on 6 January 2021.
- This disclosure was issued in compliance with Article 17(1) of the MAR regulation.
Zawarcie umowy produkcyjno-wydawniczej z Incuvo S.A.
The report announces that on 13 December 2021 PCF Group S.A., a Warsaw‑based company, entered into a production and publishing agreement with Incuvo S.A. of Katowice. The contract focuses on adapting a title from the People Can Fly portfolio for all major virtual‑reality platforms, including code adjustments to meet VR hardware specifications. PCF Group will finance the entire VR production through milestone payments tied to key development stages, with contract terms aligned to market standards for similar agreements. Upon completion and launch of the VR game, Incuvo will receive royalties contingent on sales revenue that covers PCF Group’s production, marketing, and distribution costs; the royalty rate depends on the defined sales thresholds. The game’s release is targeted for late 2023. No special contractual clauses or penalty provisions deviate from common practice for this type of agreement, ensuring standard industry compliance.
- PCF Group S.A. and Incuvo S.A. signed a production and publishing agreement on 13 December 2021 to adapt a title from the People Can Fly portfolio for virtual reality.
- Incuvo S.A. is responsible for all code adjustments and technical adaptations required to meet the hardware specifications of all major VR platforms.
- PCF Group S.A. will fully fund the VR production through milestone-based payments tied to specific development stages.
- Incuvo S.A. will receive royalties based on sales revenue only after PCF Group S.A. has recouped all production, marketing, and distribution costs.
- The royalty rates for Incuvo S.A. are structured according to defined sales thresholds, with a targeted game release date of late 2023.
Raport Bieżący Nr 18/2022: Nabycie przez Square Enix Limited Prawa do Objecia Akcji PCF Group S.A.
The report informs that on 30 June 2022 Square Enix Limited (SQEX) exercised its right to acquire the fourth tranche of 90,000 subscription warrants (Series A4) issued by PCF Group S.A. Each warrant entitles SQEX to purchase one ordinary Series C share at an issue price of 50 PLN, matching the final public offering price approved by the Polish Financial Supervision Authority on 25 November 2020. The issuance of this tranche was triggered by PCF’s revenue from contracts with SQEX exceeding 180 million PLN.
Under the investment agreement, SQEX may exercise its option to acquire Series C shares for each tranche received, up to a maximum of six tranches. By the date of this report, SQEX had accumulated 360 000 warrants across four tranches, allowing the purchase of an equivalent number of Series C shares. This represents roughly 1.2 % of PCF’s share capital and confers the same proportion of voting rights at general meetings. The company estimates that, if all six tranches were exercised, SQEX could ultimately acquire about 1.8 % of the share capital.
The warrants can be exercised until 31 December 2025. PCF currently lacks information on SQEX’s intentions regarding the exercise of these rights. The report is dated 30 June 2022 and follows a prior disclosure (report no. 40/2021) concerning the initial investment agreement between PCF and SQEX.
- Square Enix Limited exercised its right to acquire the fourth tranche of 90,000 subscription warrants from PCF Group S.A. on 30 June 2022.
- The issuance of this fourth tranche was triggered by PCF Group S.A. generating over 180 million PLN in revenue from contracts with Square Enix.
- Each warrant allows Square Enix to purchase one Series C share at a fixed price of 50 PLN, consistent with the 2020 public offering price.
- Square Enix has accumulated 360,000 warrants across four tranches, representing approximately 1.2% of PCF Group S.A.’s total share capital and voting rights.
- The investment agreement allows for a maximum of six tranches, which would result in Square Enix holding approximately 1.8% of PCF Group S.A.’s share capital.