Marvel’s Avengers Video Game Didn’t Recoup its Production Budget for Developer Square Enix


Marvel’s Avengers was a huge money loser for developer Square Enix. We reported earlier that the company lost almost $50 million due to its disasterous performance, but now we have a fuller picture of the damage wrought.

According to Square Enix Holdings’ 2Q FY2021/3 Financial Results Briefing it appears that Marvel’s Avengers didn’t even recoup its own production costs. And the game has had a 96% dropoff in players since its launch just a few short months ago.

“The HD Games sub-segment posted an operating loss as initial sales of Marvel’s Avengers were lower than we had expected and unable to completely offset the amortization of the game’s development costs,” the report says.

It’s also noted that Square Enix would’ve been in the black if it weren’t for Marvel’s Avengers being a drag on the company.

Absent factors associated with “Marvel’s Avengers,” the sub-segment would have been in the black. In addition to the amortization of that game’s development costs, another significant factor associated with the title was the fact that we undertook a major advertising campaign at the time of its launch to make up for delays in our marketing efforts resulting from the COVID-19 pandemic.

There is a certain amount of development costs still to be amortized in 3Q, but we want to recoup it by growing our sales going forward.

The report goes on to say that they’re trying to focus on increasing sales of the game to increase its userbase, and it seems that the plan will be to offer more DLC as a way to recoup costs.

In the second half of the fiscal year (“2H”), we hope to make up for slow initial sales by offering ample additional content to grow our sales.

But will anybody actually care by that point? With the PlayStation 5 and Xbox Series X on the market, this game is likely in the rearview mirror for most gamers.

Is Disney Overestimating the Brand Value of the MCU in 2020?

The game isn’t great, according to many gamers’ reviews. But beyond that, sluggish sales might be a sign that the public is burnt out on all things Avengers. For many, the end of the Marvel Cinematic Universe was Avengers: Endgame.

And the next phase of the MCU will seemingly focus on new characters or “stand ins” for classic characters like Captain America, Hulk and Thor.

One such character is Ms. Marvel, who featured prominently in Marvel’s Avengers and is getting her own Disney+ series.

Given that this game was supposed to properly introduce the character to the general public outside of comic book readers, we have to wonder how the new characters in the MCU will be received going forward.

Is it possible that the best days of the MCU Avengers are also in the rearview mirror for moviegoers?

Only time will tell.

[Hat Tip: Bounding Into Comics]

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