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Square Enix posts $61M loss due to 'increasingly difficult condition' of console market

Square Enix posted a 5.7 yen billion ($61 million) loss for the first nine months of fiscal year 2013, stating it has yet to recuperate losses from earlier in the year due to the "increasingly difficult condition" of the console sector, according to the company's recent quarterly earnings report.

Total sales for first three quarters ending Dec. 31, 2012 were 102 billion yen ($1.1 billion), a 7.4 percent increase from the same period last year. However, the company ended the first nine months with an operating income loss of 4.8 billion yen ($52 million) and an ordinary income loss of 4.2 billion yen ($45 million).

Square Enix stated it has yet to recover operating losses from the first half of fiscal year 2013, which ended on Sept. 30, 2012. According to the company, the loss is the result of the "increasingly difficult condition of the world-wide console game market, under which [Square Enix] is struggling to achieve a fair expected return on its investment."

The company's PC, mobile and social networking games have been "generating an acceptable profit." The report also noted that a "sluggish performance of arcade game machines" released in the first half of the year, which include racing title Chousoku Henkei Gyrozetter and shooter Gunslinger Stratos, has contributed to the losses it has yet to recuperate.

Despite posting losses, the company's full-year forecast lists expected net sales of 150 billion yen ($1.6 billion), 17.3 percent higher than fiscal year 2012, and a total net income of 3.5 billion yen ($37.6 billion).

For the remainder of the 2013 fiscal year, Square Enix will focus its efforts on recovering earnings, and anticipates that the launch of "full-scale commercial services" for upcoming MMORPG Final Fantasy 14: A Realm Reborn will "establish its profit base."

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