Square Enix Warns Investors of Massive Fiscal Year Loss

May 12, 2011

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.

Source: Edge, image credit

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Comments

Re: Square Enix Warns Investors of Massive Fiscal Year Loss

Submitted by Erik on Sat, 05/14/2011 - 10:43.

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

Submitted by Austin from Oregon on Thu, 05/12/2011 - 19:34.

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

Submitted by Samster on Thu, 05/12/2011 - 17:02.

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

Submitted by Austin from Oregon on Thu, 05/12/2011 - 19:33.

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

Submitted by Samster on Sat, 05/14/2011 - 04:51.

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

Submitted by Grif on Thu, 05/12/2011 - 15:26.

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.

_____________________________________________________________________________

"Power means nothing without honor and pride."

http://grifsgamereviews.blogspot.com My video game review site.

Atlanta Video Games Examiner for examiner.com

Re: Square Enix Warns Investors of Massive Fiscal Year Loss

Submitted by hellfire7885 on Thu, 05/12/2011 - 16:37.

Oh please, it'd be hilarious and you know it.

Re: Square Enix Warns Investors of Massive Fiscal Year Loss

Submitted by Grif on Thu, 05/12/2011 - 16:47.

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. >_>

_____________________________________________________________________________

"Power means nothing without honor and pride."

http://grifsgamereviews.blogspot.com My video game review site.

Atlanta Video Games Examiner for examiner.com

Re: Square Enix Warns Investors of Massive Fiscal Year Loss

Submitted by Austin from Oregon on Thu, 05/12/2011 - 19:31.

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

Submitted by Grif on Fri, 05/13/2011 - 08:42.

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

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PHX Corp: http://kotaku.com/ea-sports-developer-calls-wii-u-crap-and-nintendo-wa-508481261 EA Sports Canada Moron calls Wii U 'Crap' and Nintendo 'Walking Dead'05/18/2013 - 11:42am

E. Zachary Knight: If the videos are of sufficient quality that people subscribe and watch regularly, then those let's players are providing a service that people want. That is the heart of capitalism. That is not something that should be shamed.05/17/2013 - 8:06am

E. Zachary Knight: I have no idea who either of those people are. However, I still don't see why making a business out of creating let's play videos is somehow evil or wrong.05/17/2013 - 8:04am

MaskedPixelante: It sure is if you're just doing it for the money. See Tobuscus and/or Pewdiepie for what happens when people get into it just for the money.05/17/2013 - 7:30am

E. Zachary Knight: Why is it wrong to make money doing LPs? Why should that be something that should be shamed?05/17/2013 - 6:20am

MaskedPixelante: https://twitter.com/PsychedelicSA/status/335183893214924801 Now here's an interesting, glass half full thought about the Nintendo LP thing. It outs the people who are just doing LPs to make money.05/17/2013 - 5:56am

E. Zachary Knight: I responded in writing to all this "let's play" stuff Nintendo Started. No need for my permission, I won't give it. It's not mine to give. http://divineknightgaming.com/?p=29205/16/2013 - 2:21pm

E. Zachary Knight: Lars Doucet of Levelup Labs has a Reddit going on game companies that allow monetization of Let's Play videos. http://www.reddit.com/r/Games/comments/1egayn/lets_build_a_list_of_game_studios_that_allow/05/16/2013 - 1:04pm

Sleaker: @Imautobot - yah I wouldn't use an emulator as a good first run test of how stable the console is, haha.05/16/2013 - 11:47am

E. Zachary Knight: The 50th person to jump off a bridge is just as dumb if not dumber than the 1st.05/16/2013 - 10:03am

MaskedPixelante: Yeah, let's all jump on Nintendo for doing this, even though they're hardly the first company to do this...05/16/2013 - 9:47am

E. Zachary Knight: Wow Nintendo, this is wrong. http://kotaku.com/nintendo-forcing-ads-on-some-youtube-lets-play-video-50709238305/16/2013 - 8:44am

Imautobot: @Sleaker, further gameplay has revealed that the controller button do stick under the faceplate. Also, The NES emulator (Emuya)keeps crashing on me, though I think a bad ROM is causing it.05/16/2013 - 7:10am

Papa Midnight: AE: I wonder if any other publishers will follow suit.05/15/2013 - 8:12pm

Andrew Eisen: EA is ditching Online Pass. http://venturebeat.com/2013/05/15/ea-kills-its-controversial-online-pass-program/05/15/2013 - 7:20pm

Avalongod: @Zach and quicnkold...I've read the bill and the intent of it is to fear-monger. It's not a balanced message. I don't recall the ESRB being mentioned at all. It's more "keeps your kids away from these movies/games or they'll become violent"05/15/2013 - 4:35pm

E. Zachary Knight: quiknkold, The big problem with that legislation is the amount of misinformation out there. Who is going to ensure that the information in the pamphlet is accurate?05/15/2013 - 3:25pm

quiknkold: REBeardogg : I'm on the fence about this. on one side, I want parents to be aware of the ESRB, and even Movie Ratings. On the other hand, I feel this will be used for nothing but Propaganda. The ESRB does a good job.05/15/2013 - 3:07pm

IanC: Frostbite is coming out on iOS devices. Yet the Wii U cant handle it? *coughbullshitcough*05/15/2013 - 2:31pm

BearDogg-X: http://www.politickernj.com/65515/lesniak-ruiz-bill-limit-children-s-exposure-media-violence-clears-senate - Bill requiring schools to publish pamphlets with anti-fake media "violence" propaganda clears NJ Senate05/15/2013 - 2:03pm

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