Square cancels unconfirmed digital titles to “strengthen revenue base”

By Johnny Cullen, Thursday, 12 May 2011 11:01 GMT

Square Enix has confirmed this morning that its canceled an unknown number of digital titles to “strengthen” the company’s revenue base.

The publisher warned today that it would expect to see “extraordinary” losses due to the dropping of the games, which went unnamed in the report it released this morning. It’s now predicted a loss of ¥12 billion (around £91 million/$148 million) instead of the earlier ¥1 billion (£7 million/$12 million).

“Under a rapidly changing operating environment and more prudent estimates of future cash flows, the Company plans to write down goodwill,” Square said.

“Further, as a result of introducing a tightened selection standard regarding title lineup to strengthen the revenue base of the Company’s digital entertainment segment, project development cancellation and related losses are expected.

“Additionally, damage and losses during closures at, and restoration of, amusement facilities resulting from the Tohoku Pacific Ocean Earthquakes and Tsunami caused an extraordinary “loss on disaster.”

Thanks, MCV.

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