Square Enix Posts 13.7 billion Yen loss, operating income declines

It looks like Square Enix isn’t doing too well financially as their operating income from games division has decreased a lot.

The company posted 13,700 million Yen loss for the fiscal year ended March 31, 2013. They mentioned that the group has undertaken many strategic initiatives such as a change in their development policy, organizational reforms and a change in their business models.

The Digital Entertainment segment, which includes their game business, performed really poorly and they have blamed it on underperforming titles in North America and Europe. The company earlier expressed disappointment in games like Tomb Raider and Hitman: Absolution not selling as much as they expected.

Their browser and smartphone games are bringing in profit, and they have said that Dragon Quest X has been showing steady performance.

They have noted that the console markets have become competitive and oligopolistic, while the smartphones and tablet market is expanding rapidly. The group is looking to create new revenue streams.

Yoichi Wada had resigned earlier after forecasts of an extraordinary loss.

square enix earnings

 

Source – Square Enix Financials.