Square Enix expects to incur an "extraordinary loss" in the fiscal year ending March 31, 2013, following today's revisions to the publisher's consolidated results forecast.
According to the new forecast, the company expects results of its digital entertainment segment to fall "substantially" below what was initially planned following slow sales of major console titles throughout North America and Europe, in addition to a "sluggish performance" in arcade machines.
Square Enix now plans to begin major restructuring in its development policy, organizational structure, a number of business models and other areas. As part of these restructuring efforts, the company expects to incur a loss of roughly 10 billion Yen (or just over $105 million) for the fiscal year ending March 31, 2013.
The extraordinary loss includes a loss on disposal of content of $42 million, a loss on evaluation of content of $42 million and other losses of $21 million.
We have contacted Square Enix for further information about its restructuring.