Square Enix suffers declining revenue and profits
Yoichi Wada attributes poor financial results to lack of major releases
Square Enix's financial results for the quarter ending June 30 show a significant drop in revenue and profits.
The company posted overall revenue of ¥24,529 million ($312.4m), down from ¥32,540 million in the same quarterin 2010, and net profit of ¥690 million ($87.7m), a 61.9 percent drop from last year's figure of ¥1,575 million.
In the digital division, which inlcudes the group's game business, revenue was down 29.1 per cent year-on-year to ¥11,793 million ($150.2m). Operating income declined by 51.9 percent to ¥2,834 million ($36.1m).
"In a quarter without major title releases, our group's sales and profit were lower compared to the previous fiscal year," said CEO Yoichi Wada. "At the same time, however, we are making solid progress toward our targets for the full fiscal year ending March 2012."
The report highlighted growth in PCs and smartphones, particularly the online portal Nicotto Town and the online simulation game Sengoku Ixa, and expects an earnings recovery, "from next fiscal year ending March 31, 2013 and beyond.
The company's targets for the fiscal year ending March 2012 are ¥130,000 million ($1.6b) in revenue, a marginal increase on last year's figure of ¥124,271 million. Net profit is forceast as ¥5,000 million ($63.6m), versus last year's net loss of ¥12,043 million.

No kidding... Start making good games and creating original IP. I mean look what ATLUS did with Catherine. I purchased Final Fantasy 13 and White knight chronicles. They arent bad, but they follow old formulas and have all the anime cliche you could expect from a japanese RPG. Square enix has been making the same games for over 20 years. I think japanese RPGs would benefit from story telling methods of western games such as Mass Effect, FallOut and halflife. Sometimes the stories they come up with are so bizarre or cliche that they are hard to take seriously. And I think technology now a days offers opportunity to tell a story in a differant way and have the gamer interact with it more and actually be more a part of whats going. Unlike a movie i think for a game its important to give a gamer differant ways to interact with characters and enviroments in ways that a gamers actions affect the events and outcome of the story or results of a game. Before we were limited to a Hi-Score, no games can provide much more ways to interact with it.
Posted:A year ago