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Square revises its profit forecast amidst layoffs

Friday, 30th October 2009 17:20 GMT By Stephany Nunneley

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Square Enix has lowered its first-half profit forecast by 65 percent to ¥2.6 billion ($28.4 million) following a round of layoffs.

Blaming numerous “special factors” for the revision, the current exchange rate and premium severance packages for staff that were laid off were also to blame.

Net income for its financial year ending March 31, 2010 was lowered 33 percent, from ¥15 billion to ¥10 billion with most severance packages being absorbed during the first half.

Things are expected to look more positive once Final Fantasy XIII is released in Japan on December 17.

Via GI.biz.

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8 Comments

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  1. Alakratt

    Maybe if they had released their first RPG games from this gen on the PS3 this wouldn’t have to be necessary. I hope this teaches those sell outs at Square a lesson.

    #1 5 years ago
  2. Psychotext

    Square just shot themselves in the foot.

    I don’t know how much the rest of you know about Japanese culture (I’m an expert), but honor and shame are huge parts of it. It’s not like it is in America where you can become successful by being an asshole. If you screw someone over in Japan, you bring shame to yourself, and the only way to get rid of that shame is repentance.

    What this means is the Japanese public, after hearing about this, is not going to want to purchase FFXIII, nor will they purchase any of Square’s games. This is HUGE. You can laugh all you want, but Square has alienated an entire market with this move.

    Square, publicly apologize and cancel FFXIII for 360 or you can kiss your business goodbye.

    ( http://www.youtube.com/watch?v=k-uTnqYHZ-I )

    #2 5 years ago
  3. Santa Clause

    “Maybe if they had released their first RPG games from this gen on the PS3 this wouldn’t have to be necessary. I hope this teaches those sell outs at Square a lesson.”

    fanboyslol

    Psychotext: Well played. *laughs*

    #3 5 years ago
  4. Gekidami

    Well Santa, you have to admit that their poor sales were due to their exclusive platform choice.

    #4 5 years ago
  5. Santa Clause

    I’m sure it didn’t help, but those games alone aren’t enough to have this huge an impact on the company. For some reason, people seem to be surprised that companies are seeing less than stellar profits… IN THE MIDDLE OF A RECESSION!

    *headdesk*

    #5 5 years ago
  6. DaMan

    hahaha, +1 Psychotext.

    rofl each time I see that video.

    #6 5 years ago
  7. Gheritt White

    I remember reading that original post on GAF, PT – the reaction there remains classic.

    #7 5 years ago
  8. G1GAHURTZ

    I’m sure that the Square won’t mind if they are abandoned by a few Japanese gamers too much as long as they manage to boost game sales by doing very well in the West.

    #8 5 years ago