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Console Troubles Wreck Square Enix's Profits

| 5 Feb 2013 14:15
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Square Enix is focusing all its efforts on earnings recovery, after a rocky financial year.

Square Enix's financials are out, and - in an effort to explain things to investors - the developer of Deus Ex and Hitman lays the blame for its rocky financial year firmly on the "increasingly difficult condition of the world-wide console market". Its investors are understandably worried, as Square Enix has failed to make up the operating loss it had on the books at the end of the last six-month earnings report.

Square Enix made an operating loss of ¥4,853 million ($52.1 million) in the 9 months ending December 2012. It's forecasting a 30% drop in net income overall in the current financial year, when compared to the financial year ending March 2012. Net income is down by ¥5,745 million ($61.6 million).

Square Enix is hoping that PCs, smartphones and SNS will, if not save its financials, at least make them look more palatable. Social networking games and PC titles have been growing at "a satisfactory pace," and its MMORPG Dragon Quest X is also a steady performer.

Square Enix thinks that expansion of content and services "that conform to existing customer needs" is the way to go, together with expanding its MMO service line. It concludes that the time has come to focus "all efforts on an earnings recovery from now on."

Source: Square Enix

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