Square Enix details “extraordinary loss”, will refocus on smartphones and tablets

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By on May 14, 2013 at 11:21 am

Square Enix announced back in March that the company was expect an “extraordinary loss”, forcing CEO Yoichi Wada to tender his resignation.

Now, the full extent of that loss has been revealed, with company financials posted overnight showing a net loss of 88 million pounds, or 134 million AUD. Square Enix revealed that they will be “changing their development policy” and “redesigning its business models”, which may be bad news for PC gamers who have previously enjoyed some fantastic PC support from Square Enix on their recent releases.

According to Develop Online, Square Enix will be “putting a bigger focus on smartphones and tablets”. The company previously expressed their dissatisfaction with the performance of their AAA titles such as Tomb Raider and Sleeping Dogs, all of which failed to hit sales targets despite high critical ratings.

Source: Develop Online

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11 comments (Leave your own)
Bane Williams

Yay, they’ll be focussing instead on those FF rehashes that cost ludicrous amounts and are nothing but tap fests?

http://kotaku.com/5976753/final-fantasy-all-the-bravest-is-46-of-in+app-purchases-looking-for-a-game

If they just remade FFVII they would have more money than scrooge McDuck, but lets face it, they probably can’t do it without throwing Microtransactions into the fold. What’s that? Want to revive your party? 5 x Phoenix Downs for $1.99!

Speaking of Phoenix downs…. http://img0.etsystatic.com/000/0/6372389/il_340x270.339611980.jpg

 

smartphones, tablets?
ugh.

 

I stress this: Losses are not necessarily bad, and you need to look at the whole report to get a better picture. EA also had a loss for a few years, but also had massive goodwill impairment expense during that time.

I also stress, this is non-consolidated, which doesn’t include their subsidiaries. Their consolidated net income is (13,714,000) yen, which is something Tim and develop-online failed to consider, and their consolidated income is $11,995 after NCIs are taken into account.

 
Bane Williams

tacitus42,

Say what you will, and I know we’re all ‘PC Master Race’ over here, but my tablet gets almost as much lovin as my pc does, thanks to a huge amount of mature tactical games now available on it (Not to mention board games).

 

Bane Williams:
tacitus42,
….thanks to a huge amount of mature tactical games now available on it …

You have me interested, I don’t often get into mobile games, but I’m sorely lacking in the tactical department, specifically turn based. Got anything to suggest?

 

rapid101,

First off the figure in the earnings statements are in millions of yen or put another way the net consolidated loss is 13,714,000,000 Yen or $134,568,518AU at the exchange rate as of the 31st March 2013.

Also the gross profit margin, the ration of gross profit to sales, dropped from 40.525% to 31.637%.

Combining those 2 factors along I would resign as well otherwise you might be fired at the next AGM.

 

What a disappointment. I seem to enjoy every Square Enix game I play. Very sad to see them leaving the PC scene.

Sleeping dogs was great, still yet to pick up Tomb Raider but only because I have so much on my backlog to play atm. I’d never been interested in the Tomb Raider games until this one, so it will be my first purchase of the series aside from Lara Croft and the guardian of light. Which was also excellent.

 

NOOOOOOOOOOOO!

You’re going to [bleep]ing finish Kingdom Hearts 3 before you even touch anything else!!

 

Square, heres an idea to get rich quick. REMAKE FINAL FANTASY 7 for next gen consoles/PC.

 

Yeah I dunno what’s up with these CEO’s who think they have a good grasp of their markets and yet don’t. They make some ridiculous decisions and have accountants make odd predictions of sales and then wonder why everything goes south. Need to get some younger more awake CEO’s rather than greedy baby boomers…

(sweeping statement in regards to Publishers not just aimed at Squeenix)

 
downloader123

Time to hit it!

 
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