Square Enix blames competitive console market for multi-million yen losses

Square Enix experienced significant losses during this fiscal quarter, blaming the "increasingly competitive and oligopolistic" console market throughout North America and Europe as a primary reason behind its multi-million yen dive.

Today the publisher released its financial results for the fiscal year ending March 31, 2013, confirming a net loss of 13,714 million yen. Square Enix acknowledged its restructuring efforts which recently resulted in large-scale layoffs and the departure of CEO Yoichi Wada had a hand in these recent losses.

"In response to the latest environmental changes in the game industry, the Group has implemented various strategic initiatives such as a change in its development policy, organizational reforms and redesign of some business models. . As a result of such initiatives, the Group posts the extraordinary losses...," reads a statement from its latest financial results.

The publisher previously stated a number of its recent releases greatly underperformed, affecting the outcome of this quarter's financial results. Sleeping Dogs managed sales of 1.75 million worldwide, Tomb Raider sold 3.4 million copies, and Hitman: Absolution sold 3.6 million units.

Comparatively, the publisher's smartphone and browser titles met with success among Japanese and Korean gamers. Casual and social games such as Sengoku Ixa, Kaku-San Sei Million Arthur and Final Fantasy Brigade contributed profits. Its MMO Dragons Quest 10 also saw "steady performance," this quarter, said the publisher.

However, the company's Digital Entertainment arm, an area that covers all games, saw a 99.7 percent decrease in operating income to 44 million yen. In comparison, during the same quarter last year, Square Enix saw operating income of 89 million yen.

More from Polygon

The horror of Five Nights at Freddy's

  • Dark Souls 2: Crown of the Old Iron King Overview

  • Spacecom: a fast 4X built for multiplayer

  • Pillars of Eternity builds on role-playing classics

  • Tour the 1 KB hard drive built inside Minecraft

Latest Discussions

X
Log In Sign Up

forgot?
Log In Sign Up

Please choose a new Polygon username and password

As part of the new Polygon launch, prior users will need to choose a permanent username, along with a new password.

Your username will be used to login to Polygon going forward.

I already have a Vox Media account!

Verify Vox Media account

Please login to your Vox Media account. This account will be linked to your previously existing Eater account.

Please choose a new Polygon username and password

As part of the new Polygon launch, prior MT authors will need to choose a new username and password.

Your username will be used to login to Polygon going forward.

Forgot password?

We'll email you a reset link.

If you signed up using a 3rd party account like Facebook or Twitter, please login with it instead.

Forgot password?

Try another email?

Almost done,

By becoming a registered user, you are also agreeing to our Terms and confirming that you have read our Privacy Policy.
Spinner.vc97ec6e

Authenticating

Great!

Choose an available username to complete sign up.

In order to provide our users with a better overall experience, we ask for more information from Facebook when using it to login so that we can learn more about our audience and provide you with the best possible experience. We do not store specific user data and the sharing of it is not required to login with Facebook.

tracking_pixel_5353_tracker