Square Enix Suffers ‘Extraordinary Loss,’ Cancellations Imminent
So far, 2011 has not been a good year for Square Enix.
The RPG powerhouse behind the Final Fantasy series and publishing the upcoming Deus Ex: Human Revolution has suffered some deep fiscal losses. The company has revised substantially its projections made back in February because of some massive setbacks, most notably the earthquake and tsunami that struck Japan in March.
Square originally expected a profit of ¥1 billion ($12.4 million) for the quarter, but now projects a loss of ¥12 billion (about $148 million) instead. In order to cut the losses back, Square Enix will be cancelling some upcoming games (it already got rid of Gun Loco), but we’re not sure what they are just yet.
Square Enix has posted dire revisions to financial projections previously posted in early February. The new figures reflect an “extraordinary loss” sustained to Square Enix-owned properties hit hard by March’s earthquake and tsunami. In addition to February’s projected ¥1 billion ($12.4 million) profit turning to a loss of ¥12 billion ($148 million), the company has announced the cancellation of development on projects as yet unnamed.
In fact, Square’s going to be tightening up its title selection processes from here on in, in order to keep costs down. Don’t expect that to mean no more Final Fantasies or anything, but do expect to see more experimental games (like the kind of terrible Mind Jack, for example) being the focus of the cutbacks.
Via Games Radar.