Square Enix lowers sales, profit forecasts
"Challenging operating environment" blamed for lower than expected results
Final Fantasy publisher Square Enix has lowered sales forecasts for the first six months to the end of September, due to what it described as a "challenging operating environment."
The company now expects sales of ¥68 billion ($843.7m / £525.1m), down from ¥76 billion ($942.9m / £586.9m), and profit of ¥1.7 billion ($21m / £13.1m), lowered from ¥2.4 billion ($29.7m / £18.5m) in previous forecasts.
Operating income is expected to be up from ¥4 billion ($49.6m / £30.8m) to ¥5.7 billion ($70.7 / £44m) off the back of catalogue sales and a strong performance in the company's publishing business.
Foreign exchange losses and a loss on sale of property and equipment was also blamed for the lowered forecasts.
Yesterday, Square Enix confirmed it would be laying off a number of staff at Kane & Lynch developer IO Interactive."