Strong North American console game sales plus the "favorable progress" made by Final Fantasy XIV's relaunch allowed Square Enix to curtail losses during the first nine months of its current fiscal year and return to profitability.
While sales from Square Enix's Digital Entertainment segment dipped 2.2 percent year-over year to 56.6 billion yen ($559.4 million) during the nine month period ended December 31st 2013, it still bounced back to 6.8 billion yen ($67.2 million) in operating income. That's much improved from the operating losses of 392 million yen ($3.9 million) it posted for the same period last year.
Square Enix overall went from 5.7 billion yen ($56.2 million) in net loss to net income of 5.18 billion yen ($51.1 million). Quite the turnabout, and it's certainly enough to convince the company to set a course for annual profit of up to 6 billion yen ($59.2 million USD). That would be a fine return to form after posting an annual loss of 13.7 billion yen ($135.4 million) just one year before.
The company believes "major changes" are in store for the gaming industry, especially given the rise of gaming on mobile devices like smartphones and tablet PCs all while the console game market becomes "increasingly competitive and concentrative." That means continued commitment to mobile gaming, which already has proven to be a strong performer for Square Enix particularly in Asian markets.