Final Fantasy and Dragon Quest series creator and publisher Square Enix warns investors that it will report losses of around ¥12 billion ($148m / £90.6m) for its fiscal year later this week. Digital project cancellations, the recent natural disasters in Japan, associated closures and restoration of the company's amusement facilities are being blamed for the losses. The digital projects represent slightly over a third of the total loss.
"Under a rapidly changing operating environment and more prudent estimates of future cash flows, the Company plans to write down goodwill (approximately ¥8.8 billion)," read the statement. "Further, 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."
"The above factors as well as losses on retirement of noncurrent assets (approximately ¥0.6 billion)," the statement continues, “losses on adjustment for changes of accounting standard for asset retirement obligations (approximately ¥0.5 billion) and other losses are expected to result in total extraordinary losses of approximately ¥16.0 billion during the fiscal year ended March 31, 2011."
Square Enix also expects sales to drop slightly, from ¥130 billion to ¥125 billion, despite Dragon Quest Monsters Joker 2 Professional topping the Japanese charts. Last year, the company posted profits of ¥9.5 billion.
Comments
Re: Square Enix Warns Investors of Massive Fiscal Year Loss
I remember when you rarely had to read a review for a Squaresoft game. If you saw their logo on a product you KNEW it was going to be good. Oh how times have changed. I'll be sticking with Valve until Square Enix gets their head out of their ass.
-Ultimately what will do in mankind is a person's fear of their own freedom-
Re: Square Enix Warns Investors of Massive Fiscal Year Loss
Funny how GP used a picture of Tidus for the article, FFX was the last decent FF.
-Austin from Oregon
Feel free to check out my blog.
Re: Square Enix Warns Investors of Massive Fiscal Year Loss
Squeenix needs to stop hammering the crap out of single IPs, be more flexible, and generate some new content. We get a new Kingdom Hearts title practically every week, and let's not mention the endless FFVII spin-offs. If these neverending sequels and prequels and alternate realities and sideplots etc. didn't completely bastardise everything that made the original titles good in the first place, it'd be one thing, but it's like making more booze by watering down what you have.
They've forgotten how to make a good game and lost sight of what matters. FFXIII and the failures of their latest MMO prove that tenfold. SE need to go back to basics. By all means revisit the old Final Fantasies, but do it to learn how to make a good game again! When you're only selling titles based on franchise impetus, something is wrong.
Re: Square Enix Warns Investors of Massive Fiscal Year Loss
If there's anything that pisses me off about SE, its the new systems that take a party game, but result in a game over if the protagonist dies. The whole point of building a team is that they can help and revive EACH OTHER. I hate the fact that I just have to stack the crap out of Sory (and the dude in XIII) because the other party members don't matter.
-Austin from Oregon
Feel free to check out my blog.
Re: Square Enix Warns Investors of Massive Fiscal Year Loss
I just find it the pinnacle of arrogance that they were working on one or two sequels to FFXIII before they'd even seen how successful it was. And then when it was perhaps one of their least popular releases, they just claimed 'cultural difference' and carried on anyway. At this point they bank on the people who ABSOLUTELY MUST OWN EVERY FINAL FANTASY to buy their games. I used to be one of those people. But Final Fantasy XIII-2 and Final Fantasy Versus 13? Quite frankly, they can kiss my arse until they can prove to me they remember how to make a game and tell a good story.
Re: Square Enix Warns Investors of Massive Fiscal Year Loss
Maybe they'll start listening to the millions of people asking for a Final Fantasy VI (Not VII, I do NOT want to see HD Cloud in drag.) remake, and Kingdom Hearts 3.
Yeah, right.
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"Power means nothing without honor and pride."
http://grifsgamereviews.blogspot.com My video game review site.
Atlanta Video Games Examiner for examiner.com
Atlanta Video Games Examiner for examiner.com
Re: Square Enix Warns Investors of Massive Fiscal Year Loss
Oh please, it'd be hilarious and you know it.
Re: Square Enix Warns Investors of Massive Fiscal Year Loss
Careful what you wish for. What has been seen cannot be unseen. On the other hand, I wouldn't mind a high-def Tifa. So maybe the benefits are worth the risk. >_>
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"Power means nothing without honor and pride."
http://grifsgamereviews.blogspot.com My video game review site.
Atlanta Video Games Examiner for examiner.com
Atlanta Video Games Examiner for examiner.com
Re: Square Enix Warns Investors of Massive Fiscal Year Loss
You can get that in Advent Children you know. If you can stomach advent children enough to make it worth it.
-Austin from Oregon
Feel free to check out my blog.
Re: Square Enix Warns Investors of Massive Fiscal Year Loss
No thanks. Once was enough for me. I'd settle for a remake on PS3.
_____________________________________________________________________________
"Power means nothing without honor and pride."
http://grifsgamereviews.blogspot.com My video game review site.
Atlanta Video Games Examiner for examiner.com
Atlanta Video Games Examiner for examiner.com