In a revision to the company's financial forecast, game-maker Square Enix has issued a warning of financial losses in 2010. According to Square, the firm has recorded "extraordinary losses" in the last financial quarter of the year, and anticipates a nearly $150 million net loss for the financial year that ended in March. Back in February, Square Enix was projecting a modest profit of 12 million for the year, and now they are projecting a year loss of loss of $148 million.
Some of the blame falls to the recent tsunami and earthquake in Japan that closed "amusement facilities," but some of the losses spring from non-natural-disaster causes.
Part of Square's statement reads: "As a result of introducing a tightened selection standard regarding title lineup to strengthen the revenue base of the Company's digital entertainment segment, project development cancellation and related losses (approximately ¥4.5 billion) are expected."
Back in March, we learned that Square had canceled shooter Gun Loco, but we don't know yet which, if any, announced games or projects Square has canceled. We'll let you know when we know, of course.
If you are hyped to pore over financial statements, check out Square's.
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bcunniff
Maybe if they would get FF7 remake made or maybe kingdom hearts 3 there wouldn't be such a loss. People have been begging for these 2 games and square is just sitting there thinking how can we quit losing money, not hard when you got 2 franchises people have been begging to see on the next gen.
macross2012
When you lay off your amazing people who have made godly games for you and bring in scrubs who are making trash games that are HORRIBLE what do you expect.
They have released like 5 games in the last year that sold less than paint thinner..
DinoHaxxSaur
I want Mistwalker to make another lost odyssey or another Blue Dragon for 360. Best two Rpg's on the box. Anyways I agree with an earlier comment that Square Enix needs to go back to basics. I want a turn based Rpg with decent graphics and an awesome drags you in story. I don't want supreme graphics that limit gameplay and keeps thing linear. Looking at you ff13. Mass Effect fell into the same boat. Also sinking everything into graphics cut down on the story. Also I don't need voice actors. I am kind of getting sick of it. Games go faster being able to read everything yourself. A remake of FFVII and Chrono Trigger would be awesome. Hopefully both can be on the 360 since that is the system I currently own. Also I;ve been waiting for Kingdom Hearts 3. I want to play this game so bad and guess what Square Enix? I'm not getting any younger and the longer you drag it out the less likely I will Play it.. Almost 10 years of KH and yet can't finish the series, talk about milking a franchise.
TheCelticNorse(OWAJ)
Square Enix should just stop making these piss poor games they've been making and make the games the gamers want. FFXIII was a disappointment to me and all of these side Kingdom Hearts BS games aren't good enough. They need to just remake FFVII because it'd sell like wildfire or make Kingdom Hearts 3 already and stop with the dumb side story games. Granted Birth By Sleep was decent but still not a KH3.
ProudFilipino
That sucks! they should make KINGDOM HEARTS 3 ALREADY! then their money will be back
NightAngel777
Put Out Kingdom Hearts 3 And Sales Will Rocket Easy. I For One Plan On Buying 2 copies Of Kingdom Hearts 3 For My Self
Glowfluff
Well, I suppose they could always make a FF7 remake. Tons of fanboys would snatch that up.
SonyNmbrOneGuy
I find it tasteless to blame the earthquake and tsunami for SE's financial losses.
I actually don't but Stephen Johnson probably does.
SCM13
Can't go wrong w/ final fantasy :D. Drop the manga, and other lame projects.
Avittion
Hey Square-Enix! If you wanna make sure you make back your money instead of making crap people don't want to buy just suck it up and make Type-o and the FFVII Remake. Cause you know those are guaranteed to sell. Otherwise you need to just hand your company over to Mistwalker studios!
linkfan57
I think that right now they are suffering for their game 'flops' that have occurred recently. I hope that they can get their good stuff rolling! I also hope that more people play these 'flops' because most of the people I personally know that complain about them are people who haven't played them.
FSUMole20
There was also the delay of Deus Ex: Human Revolution to fiscal year 2011. Not sure how much that factored into it all, but I'm definitely looking forward to getting that game.
l1nk22
maybe if they would stop making crappy DS and PSP games and actually live up to their potential like making a kingdom hearts 3 they would turn a profit!
cwbys21
That's a shame. Lucky for SE, I can give them some good, free advice. One, go back to making turn based rpgs that built your empire, and quit trying to make them pseudo action games. Before starting making a game, take a good long look at Dragon Quest 8, a game that is without a doubt, one of the best jrpgs ever made.
And my last piece of advice, give your game producers a good kick in the rear and tell them to work faster. There is no excuse for the amount of time it has taken them to release their games recently. It has took them/is taking them forever to release the following big name games: Final Fantasy 13, Final Fantasy 13 Versus, Final Fantasy Agito 13 (Type-0), Kingdom Hearts 3, and Kingdom Hearts Birth By Sleep (seriously, two are psp games, no reason at all to take that long to make them). If Bethesda can make a huge open world Fallout 3 faster than you can make a linear FF13, or even Bioware making Mass Effect 1 and 2, both of whom had less people working on them, something is wrong and needs to be fixed.
asthmagasm
I'd assume part of this also has to do with Final Fantasy XIV being a colossal flop of a game. We're eight months into it being free when it should have been $12.99 a month per subscriber, so I'm sure they're losing big there. As big of a fan as I was of Final Fantasy XI, I still can't bring myself to play XIV and forums seem to be sharing that same sentiment. It wouldn't surprise me if they're charging by late summer, but even then unless the newer updates change a lot, I think that's when they'll see "subscribers" drop off. I say subscribers loosely, as there are a lot of people who still have active accounts solely because they aren't being charged for it.
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