According to the revised financial forecast for the end of the year March 31st, Square-Enix expects to have undergone an “extraordinary loss.” The name of the financial report itself is quite indicative of the company’s bleak outlook: “Announcement of Revisions to Consolidated Results Forecasts and Expected Extraordinary Loss.”
The company had had some original projects at a forecast net sale of ¥150 billion and ¥3.5 billion net income loss. These projections are now ¥145 billion net sale and a whopping ¥13 billion net income loss.
Square-Enix reported that the majority of the extra ¥10 billion loss is accounted for by huge changes in development policy, business models, etc.
Their report points their losses for their estimated net sales comes from poorer than expected performance in North American and European markets. Not only did they suffer here, but their arcade machine business also performed unexpectedly low.
Many of Square-Enix’s recent releases have been panned by reviewers and players alike. Hopefully this loss along with Wada’s resignation will motivate them to release the kind of quality games that they used to back in the day.