Square Enix lowers six-month financial forecast, cuts expected sales by $100M
It looks like Square Enix characters will have to hold that spiky hair with generic product, as the company lowered its earnings forecast today for the six months (first half of its fiscal year) ending September 30, 2010. The publisher reduced new sales expectations by 10.5 percent to ¥68 billion ($846 million), which is far below the ¥90.6 billion the company took in during the same period last year. Squeenix also lowered its net income expectations for the two quarters to ¥1.7 billion ($21 million), a reduction of just over 29 percent from the original forecast.
The company said that the declining figures were due to the "challenging operating environment" in which new games experienced "relatively slow growth." Squeenix's operating income remains high, however, thanks to "profitable carryover sales of major titles released in March of the previous fiscal year" -- i.e., Final Fantasy 13 et al. Square Enix will release its actual second fiscal quarter results in the near future.
