Square Enix recently published its Q3 financial earnings report, and things are looking pretty great overall. Even as a layman I'm sure you could have guess that. Think about it: in the past year we've seen launches for games like Final Fantasy XV and Rise of the Tomb Raider. Final Fantasy Brave Exvius was the talk of the town with its Ariana Grande collaboration. Deus Ex: Mankind Divided was finally released, though it didn't perform quite as well as projected. There's also a huge expansion for Final Fantasy XIV on the way. Oh, and Hitman just wrapped up a fantastic first season.
The launch of these huge titles, "on top of strong download sales of catalogue titles released previously, have led to a material increase of net sales and operating income in the area of console games, compared to the same period of the prior fiscal year." Those net sales were up a staggering 33%, while operating profit was down slightly by 6%. This is due mainly to the fact that development costs for games like Final Fantasy XV, which were huge, were taken into account as part of the equation. That will even out over time.
Meanwhile Square Enix noted that mobile games like Final Fantasy Brave Exvius saw a huge uptick in revenue. "Net sales and operating income, in the area of content for platforms such as smart devices and PC browser, increased significantly compared to the same period of the prior fiscal year primarily thanks to the strong performance of existing major titles of native application games on smartphones such as 'Final Fantasy Brave Exvius,' Hoshi No Dragon Quest,' and 'Dragon Quest Monsters Super Light.'"
You can expect the upward trend for mobile games to continue going forward. Square Enix is perhaps the most forward thinking among all of the big AAA console developers in terms of mobile, at least in the West. In the East Bandai Namco and Square dominate the mobile space, and as Nintendo and Square Enix pave the way for mobile in the West we're going to see more of these "gacha" style mobile games. They're capable of producing AAA console game profits while costing a fraction of the budget to develop. It's a no-brainer for these publishers, and the games are actually quite fun.