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After two months, Marvel's Avengers still hasn't recouped development costs

By Tim Augustin - on 27 Nov 2020, 5:31pm

After two months, Marvel's Avengers still hasn't recouped development costs

Image: Square Enix

Ouch.

In a Square Enix financial results briefing session, president Yosuke Matsuda revealed that the Marvel’s Avengers game has yet to recoup its development costs. Matsuda stated that, “Sales of Marvel’s Avengers were lower than we had expected and unable to completely offset the amortization of the game’s development costs.” 

According to games analyst David Gibson, the game cost anywhere from US$170m to US$190m to make. Gibson also reported that Square Enix’s HD Games business suffered an operating loss of 6.5 billion yen (around US$62 million), “driven by Marvel’s Avengers.” Matsuda also clarified that if Avengers had not been released in this financial quarter, the company would have actually made a profit. He explained why:

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.

Matsuda is hopeful that future DLC content will make up for the game’s initial slowdown in sales. This makes sense, considering that Marvel’s Avengers is a live-service game with plans to add more heroes, villains and story content in the years to come. The first of these free DLC add-ons will be Kate Bishop and her storyline Future Imperfect, coming to the game on December 8, 2020.

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