Square-Enix improves losses in Q1

Square-Enix's latest financial numbers (PDF) are a bit mixed. The publisher posted a loss for the first quarter of its fiscal 2014, but said loss is an improvement over the loss posted during the same period last year. Specifically, Square-Enix posted net sales of 24 billion yen ($245.3 million), down from 24.9 billion yen ($253.7 million) during Q1 last year. The company recorded a net loss of 493 million yen ($5 million) an improvement over last year's loss of 2 billion yen ($21.1 million).

Outside of Square-Enix's overall performance, the Digital Entertainment arm of the company (i.e. video games) showed some growth, with net sales of 11.5 billion yen ($118 million) and an operating income of 1.3 billion yen ($13.4 million), up from sales of 11.3 billion yen ($115 million) and a 111 million yen ($1.1 million) operating loss last year. Even so, Square-Enix cited "weak" sales of console games, as no major titles were released during its first quarter. Meanwhile, its browser and smartphone titles have been making "smooth progress" and the Wii MMO Dragon Quest X "has been showing steady performance."

The financial statement reiterated comments from earlier this year – when the company posted a $134 million loss – noting the rapid spread of mobile devices like tablets and smartphones, while the console game market becomes increasingly competitive. These changes have already led to major restructuring, in particular a lot of executive shuffling.