• Square Enix reports loss due to "Tough console market"

    by
    Aulayna
    Published on 02-05-2013 11:00 AM
    21 Comments Comments
    Square Enix has reported a net loss for the nine months ending December 31st.


    It blamed the result on what it described as “the increasingly difficult condition of the world-wide console game market, under which the Group is struggling to achieve a fair expected return on its investment”.


    Net loss for the period reached ¥5,745m with operating losses hitting ¥4,853m. Net sales reached ¥102,795m, up from the ¥95,738m posted in the same period the year before.


    Square Enix’s digital entertainment division saw net sales increase 7.7 per cent to ¥57,827m while last year’s operating income of ¥12,451m has slipped to a ¥392m loss.


    On a better note, browser game Sengoku IXA and social game Final Fantasy Brigade are generating “acceptable profit”, while MMORPG Dragon Quest X “has been showing steady progress”


    The company now predicts net sales for the financial year ending March 31st of ¥150,000m, up from 2012’s ¥127,896m. However, it forecasts a 30 per cent drop in operating income and a 42 per cent drop in net income at ¥3,500m.

    [Source: Tough console market sees Square Enix report loss | Games industry news | MCV ]
    This article was originally published in forum thread: Square Enix reports loss due to "Tough console market" started by Aulayna View original post
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    Comments 21 Comments
    1. Loony BoB's Avatar
      Loony BoB - 02-06-2013, 10:21 AM
      Quote Originally Posted by Dr. rydrum2112 View Post
      Bob- You missed my point. Yeah 14 wasn't f'ded up last year but they spent lots of time & money fixing and getting set to relaunch 14 in those 9 months. How is that the console game market's fault?
      That can explain a predicted loss, but they were expecting better returns. When they tell shareholders they expect money to come in, they were never telling them it was going to be flooding in from FFXIV. The "console game market" explanation is for the shareholders, and it is there to explain why they did not meet their own expectations.

      They never expected any money to come from FFXIV in those nine months, and they always expected to be pouring resources into it. They expected to be making a loss in this area, I'm fairly certain of that, because pretty much everyone knew it. However, the console games they did release did not create their expected revenue, and therefore they are correct in stating that the reason they did not meet their expected revenue for the nine months was due to the console game market and not the MMO market.

      Ouch! is pretty much on the ball with saying that without the breakdown of the numbers we can't do much analysis. I don't expect them to bulltrout the shareholders as if they can't read the numbers, though, and those shareholders probably get to see more details than we do.
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