Sections

Square lowers profit forecasts 65% following layoffs

Premium severance costs blamed for expected loss

Square Enix has issued a revision to its 2010 fiscal year financial forecast, lowering its estimated first-half profit by 65 per cent to JPY 2.6 billion (USD 28.4 million).

The company blamed a number of "special factors" for the forecast revision, including an unfavourable exchange rate and the cost of premium severance packages for staff laid off.

Net income for the full year, ending March 31, 2010, was lowered 33 per cent, from JPY 15 billion to JPY 10 billion, indicating most of the severance payments will be absorbed in the first half period.

While not mentioned specifically in the guidance, profit is expected to be buoyant in the second half of the year as Square releases Final Fantasy XIII in Japan on December 17.

Related stories

Life is Strange lost a key actor due to SAG-AFTRA strike

Ashly Burch only served as a consultant for Chloe in three-part prequel Before the Storm

By Matthew Handrahan

Mobile revenue gravity pulls Square Enix inwards

As cash flows in from Final Fantasy titles in the Japanese mobile market, is Square Enix losing its drive to build new IP and conquer overseas markets?

By Rob Fahey

Latest comments

Sign in to contribute

Need an account? Register now.