Square Enix posts $134M fiscal net loss, projects profit for coming year
As approximately projected, Square Enix posted a net loss of ¥13.7 billion for the fiscal year ending March 31 2013, that converting to around $134 million. Back in March, Square Enix announced it was implementing major restructuring that would produce an "extraordinary loss". Today the company further detailed its new strategy for the next fiscal year, in which it projects a return to profit.
"The business environment surrounding the [Square Enix] Group is in the midst of major changes, where smart devices such as smartphones and tablet PCs are spreading rapidly," Square Enix stated in today's results, "while the console game markets in North America and Europe are increasingly competitive and oligopolistic. In light of such environmental changes, the Group is focusing all efforts on a substantial earnings improvement through driving reforms of business structure in order to establish new revenue base."
Square Enix previously noted "weak" sales of "big console titles" in North America and Europe, including Sleeping Dogs, Hitman: Absolution, and even Tomb Raider. Today the company said it will increasingly target smartphones and tablets, citing Final Fantasy Airborne Brigade and Kaku-San-Sei Million Arthur as satisfactorily profitable. Square Enix also noted Dragon Quest X as "showing steady performance."
As such, the restructuring brings overhauls to Square Enix's larger-scale development,with the company looking to improve turnover and produce content better tailored for different regions. Square Enix was clearly dissatisfied with the performance of its western portfolio, and layoffs were incurred in the company's North American and European divisions.
Square Enix believes these changes will be the platform for profit in the coming fiscal year, projecting net income of between ¥3.5 billion and ¥6 billion, or $34.4 million to $59 million.
