Tue, Mar 26, 2013 | 09:13 GMT
Square-Enix expects ‘extraordinary loss’ in next financial report
Square-Enix has revised its financial forecast for the year-ended March 31st, and now expects to suffer an ‘extraordinary loss’.
The financial report is actually titled, “Announcement of Revisions to Consolidated Results Forecasts and Expected Extraordinary Loss” and paints a grim image of the publisher’s performance across the current financial year.
The report reads, “The Company forecasts that actual business results from its Digital Entertainment Segment substantially fall below its plan primarily due to slow sales of major console game titles in North American and European markets.
“The Company is also experiencing sluggish performance of its arcade machine business. In addition to these factors, the Company expects to incur extraordinary loss about loss from restructuring in the settlement of the account for its fiscal year ending March 31, 2013.”
Said revisions are edits to the company’s last projection, made back on October 30, 2012, and suggest a dip in digital and western sales.
The publisher had forecast net sales of ¥150 billion, but has now reduced its expectations down to ¥145 billion, as well as dropping its estimated ¥3.5 billion net income loss down to a staggering ¥13 billion.
Following the revision, Square-Enix has stated the “extraordinary loss” in question will come from “major reforms and restructuring in its development policy, organizational structure, some business models, and others”, which will account to further loss of ¥10 billion.
The loss breakdown works out at the disposal of content at around ¥4 billion, loss on the evaluation of content at around ¥4 billion, and the “other” section will cost approximately ¥2 billion.
It’s bad times indeed for Square-Enix. What do you think can be done to reverse the trend? Let us know below.