Here's how much Square Enix spends on games development

Games giant Square Enix spends several hundreds of millions of dollars on games development every year, company data reveals.

@DeekeTweak
Published Wed, May 4 2022 9:21 AM CDT

Square Enix spends hundreds of millions of dollars every year on its video games production account, and in FY2021 it spent more than it ever has before.

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A quick look at Square Enix's game investment spending gives perspective on why it sold its Western game development division to Embracer. Square Enix cut its losses after losing an estimated $200 million from Avengers and Guardians of the Galaxy, both games failing to recoup even their development budgets let alone make a profit.

Here's how much Square Enix spends on games development 15 | TweakTown.com

According to data provided by the publisher and compiled and converted by us, Square Enix's game investment spending can vary quite a bit depending on what it's plans are. In the last six years, Square Enix has spent over $300 million to fund its in-development projects, with the last two years jumping up to $670 million (FY20) and a record $711 million (FY21).

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This surge of game dev spending likely coincides with early development phases of key products like Avengers, which was first confirmed in January 2017.

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This data gives us an idea of not only how much Square Enix is spending, but also the scale, scope, and number of projects. Games like Final Fantasy XV and Final Fantasy XVI, for example, are very expensive and command budgets of hundreds of millions, whereas smartphone games are cheaper.

The more money Square Enix makes, the more money it will re-invest into future products that will in turn make revenues and profits farther down the line.

Analysis: Why Square Enix sold its Western division to Embracer Group

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Derek joined the TweakTown team in 2015 and has since reviewed and played 1000s of hours of new games. Derek is absorbed with the intersection of technology and gaming, and is always looking forward to new advancements. With over six years in games journalism under his belt, Derek aims to further engage the gaming sector while taking a peek under the tech that powers it. He hopes to one day explore the stars in No Man's Sky with the magic of VR.

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