Square Enix Expects Major Losses This Year

Square Enix expects an “extraordinary loss” for this fiscal year following a revision of its financial results forecast.

For the year ending March 31, 2013, Square Enix now expects to make a net loss of ¥13 billion ($138m/£91m), which is ¥16.5 billion lower than the ¥3.5 billion ($37m/£24m) net income forecast on October 30 2012. Last year saw a profit of ¥6 billion ($64m/£42m). Square also expects a drop in revenue: from ¥150 billion to ¥145 billion ($1.5b/£1b).

Tomb Raider is expected to have sold 3.4 million units – excluding downloads – by the end of the fiscal year, missing its forecasted target. Hitman: Absolution, which is expected to have sold 3.6 million by the end of the fiscal year, and Sleeping Dogs, expected to have sold 1.75 million, are also missing their targets.

In light of these losses, Square Enix CEO Yoichi Wada is stepping down.


via GI International

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6 Comments on Square Enix Expects Major Losses This Year

R.J.

On March 26, 2013 at 2:58 pm

Not surprising. Final Fantasy isn’t the cash cow it once was, especially when they had to go back and redo XIV. Though, it seems like maybe they were expecting too much if Hitman and Tomb Raider can sell millions of copies, and they still came in under the forecasts.

Derek

On March 26, 2013 at 4:10 pm

All they gotta do is recreate classics like FFVII, Xenogears, or Chrono Trigger with their new game engines and they are guaranteed huge sales.

Goner

On March 26, 2013 at 6:18 pm

@Derek many had thought that before, but nostalgia sometime kill evolution, the dead belong to the past, and see Aerith death ‘s again and again, will never match the very first time just like a first kiss,but it is just my thought.
The losses is every where peoples are penniless and they are so many games outside.

Michael

On March 26, 2013 at 6:39 pm

There are over 150 million units combined with Microsoft and Sony.

What the hell are people using there consoles for that they cant sell over 10 million units like nintendo games do.

TR the Dr

On March 26, 2013 at 6:42 pm

I completely agree with @Derek. This announcement of a loss just to me will further drive remakes of classic games which people will thirst for on the new next gen consoles. Its crazy, how is 3.4 million sold a disappointment? Thats pretty insane.

TR the Dr

On March 26, 2013 at 6:44 pm

Also, it’s kinda ironic that Amazon has Tomb Raider as the deal of the day.