Square Enix Warns Investors Of "Extraordinary Losses"
Not that a terrible earthquake and nuclear crisis didn't have an impact, but veteran gamers will point to other reasons for the massive downturn.
Back in February, Square Enix issued its projected net income of only 1 billion yen ($12.35 million), which was down 90% in a year-over-year comparison. But just before the publisher presents its full-year financial numbers, they've issued a depressing update: for the 12-month period ending March 31, 2011, the company now expects "extraordinary losses" of 12 billion yen ($148.33 million) on revenue of 125 billion yen ($1.53 billion). This is in stark comparison to the 9.5 billion yen ($117.4 million) in profit the company made on 192.25 billion yen ($2.37 billion) revenue the year prior.
Many of the losses are attributed to "a reassessment of unspecified previous acquisitions now worth about 8.8 billion yen ($108.78 million) less due to "a rapidly changing operating environment." Plus, the publisher expects to can a bunch of projects, although we don't have targeted titles just yet. It isn't good news for investors and long-time gamers will wistfully remember the days of Squaresoft, when it seemed most everything the company touched turned to gold. My, how times have changed.
Tags: square enix, square enix sales, square enix earnings
5/12/2011 3:13:27 PM Ben Dutka
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Comments (73 posts)
FatherSun
Thursday, May 12, 2011 @ 4:01:19 PM
gunblademaster
Thursday, May 12, 2011 @ 4:04:43 PM
WorldEndsWithMe
Thursday, May 12, 2011 @ 4:36:42 PM
Akuma07
Thursday, May 12, 2011 @ 10:29:53 PM
Modern western gamers have never played a game like that before, and if they did it right, they could re-ignite the RPG passion.
FF7 is Squares chance to re-introduce the RPG formula, just like it was 10 years ago. There hasn't been ANY true RPG games since FFX, its no wonder that western gamers dont care about rpgs anymore, they havnt seen or played ANY good ones.
tayizfire
Friday, May 13, 2011 @ 12:46:45 AM
Fane1024
Friday, May 13, 2011 @ 3:36:19 AM
FatherSun
Thursday, May 12, 2011 @ 3:56:42 PM
Reply
Last edited by FatherSun on 5/12/2011 3:58:49 PM
gunblademaster
Thursday, May 12, 2011 @ 4:07:21 PM
Reply
Qwarktast1c
Thursday, May 12, 2011 @ 4:14:46 PM
Reply
Oyashiro
Thursday, May 12, 2011 @ 4:53:03 PM
Qwarktast1c
Thursday, May 12, 2011 @ 5:31:20 PM
Qwarktast1c
Thursday, May 12, 2011 @ 11:27:01 PM
BikerSaint
Friday, May 13, 2011 @ 2:51:00 PM
Excelsior1
Thursday, May 12, 2011 @ 4:38:16 PM
Reply
WorldEndsWithMe
Thursday, May 12, 2011 @ 4:47:14 PM
BikerSaint
Thursday, May 12, 2011 @ 6:26:55 PM
Akuma07
Thursday, May 12, 2011 @ 10:32:24 PM
tayizfire
Friday, May 13, 2011 @ 12:49:56 AM
Fane1024
Friday, May 13, 2011 @ 3:44:57 AM
Underdog15
Friday, May 13, 2011 @ 8:10:52 AM
WorldEndsWithMe
Thursday, May 12, 2011 @ 4:45:31 PM
Reply
Highlander
Thursday, May 12, 2011 @ 4:49:47 PM
Reply
Jawknee
Thursday, May 12, 2011 @ 6:51:45 PM
PorkChopGamer
Thursday, May 12, 2011 @ 11:53:44 PM
Fane1024
Friday, May 13, 2011 @ 3:48:11 AM
Highlander
Friday, May 13, 2011 @ 12:44:54 PM
Akuma07
Thursday, May 12, 2011 @ 10:38:02 PM
The western market is already overcrowded with games as it is, at least 50% of the games that hit the market these days don't sell high numbers, they are simply saturating the market at a time when most people can't afford it.
Japanese developers should be making their games more unique, we need something different, im getting bored with all the games that come out these days, because they are all exactly the same. Havn't played ANYTHING of FF quality in years.
Naztycuts
Thursday, May 12, 2011 @ 4:59:56 PM
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Newsflash to SE: The hardcore CODheads will never care about your RPG's if they didn't before FF XIII. The once faithful would have continued to line your pockets, bad business move anyone?
main_event05
Thursday, May 12, 2011 @ 5:03:23 PM
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Jawknee
Thursday, May 12, 2011 @ 6:50:53 PM
Akuma07
Thursday, May 12, 2011 @ 10:33:31 PM
BikerSaint
Thursday, May 12, 2011 @ 6:32:10 PM
Reply
According to Kotaku....
Square Enix has cancelled multiple in-development titles, according to the company's latest financial forecast.
These games were binned as the company is "introducing a tightened selection standard regarding title lineup to strengthen the revenue base of the Company's digital entertainment segment".
The name/franchise of the cancelled titles was not disclosed.
Jawknee
Thursday, May 12, 2011 @ 6:43:19 PM
Reply
/
I giggle every time I hear this because of how patently ridiculous the assertion is and the fact that the people who spout this nonsense have an inability and/or simply refuse to acknowledge that this is the exact reason they are failing this generation.
WorldEndsWithMe
Thursday, May 12, 2011 @ 7:13:36 PM
PorkChopGamer
Thursday, May 12, 2011 @ 11:39:20 PM
marcusfrommo
Thursday, May 12, 2011 @ 7:38:40 PM
Reply
karneli lll
Thursday, May 12, 2011 @ 9:05:39 PM
Reply
Akuma07
Thursday, May 12, 2011 @ 10:35:10 PM
shadowscorpio
Friday, May 13, 2011 @ 12:30:05 AM
Arvis
Friday, May 13, 2011 @ 8:13:33 AM
AbsoluteZer0
Thursday, May 12, 2011 @ 9:50:09 PM
Reply
AbsoluteZer0
Thursday, May 12, 2011 @ 9:50:10 PM
Reply
Fane1024
Friday, May 13, 2011 @ 3:57:05 AM
bridgera
Thursday, May 12, 2011 @ 10:33:44 PM
Give it a little bit. I'd consider waiting until the next quarter to see how their finances turn out after an announcement like this.
I'd definitely be wary of this stock from a customer's persective, that company hasn't really produced a product I wanted in quite a while. From that sense, I'd be worried about further losses and non-recovery.
That actually gives me the idea to look at investing in video game companies immediately before big game releases.
Now I want to look at activision's stock before & after COD releases, see if there was any change in stock price the following quarter.
Roach721
Friday, May 13, 2011 @ 2:50:28 AM
bridgera
Friday, May 13, 2011 @ 10:26:40 PM
You can scale the timeline all the way back to when they became a public traded company.
For things like how stock priced was influenced by a game release, you have to look up when the games were released, and then keep in mind that profits aren't posted until the end of the calendar quarter. (Jan 1 to Mar 31)(Apr 1 to Jun 30th... etc).
You can often see a jump in stock price when companies post their quarterly profits.
if you are really interested in investing, I'd definitely recommend you read some books by Peter Lynch. He worked for an investment firm for a long period of time and has some great intro books to investing.
BigBoss4ever
Friday, May 13, 2011 @ 12:09:40 AM
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Last edited by BigBoss4ever on 5/13/2011 12:10:13 AM
shadowscorpio
Friday, May 13, 2011 @ 12:32:57 AM
Reply
PorkChopGamer
Friday, May 13, 2011 @ 2:01:37 AM
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Maury: Square-Enix, in the case of Final Fantasy 13: This is NOT a JRPG!!
Square Enix runs to the back devastated and all of you are cheering, taking some weird sort of pleasure in it.
In all seriousness, I like Square alot. I sincerely hope they bounce back.
And for a little parity to end my work day, this is strictly for those who are mad that the 360 gets multiplatform RPG support. How can the PS family be the Holy Grail for RPG devs when they barely supported the one exclusive JRPG (not counting the mighty NIS games) they have? WKC 1 million over THREE games. And Gow 3 and Uncharted 2- 10 million. I'll hang up now and listen to your response over the radio.
Last edited by PorkChopGamer on 5/13/2011 2:05:28 AM
Fane1024
Friday, May 13, 2011 @ 4:08:48 AM
p.s. I don't understand the phrase "over THREE games"; WKC *2* isn't even fully released yet. Moreover, GOWIII and U2 are completely distinct games; why group them in your comparison other than to exaggerate the disparity artificially?
Perhaps a comparison to some 360-exclusive JRPGs would have been better. Oh, wait, didn't they all tank?
p.p.s. Fan of Level 5; not saying the lukewarm reviews were deserved.
Last edited by Fane1024 on 5/13/2011 4:21:02 AM
Arvis
Friday, May 13, 2011 @ 8:22:16 AM
And everything Level 5 does is really good. Admittedly, WKC is the "worst" Level 5 game I have ever played, and yet it is still amazing. Pretty much just as good as FFXIII. And when you consider the history and size of Square and Level 5 you'd realize how insane it is that Level 5 can reach the same level of quality as Square even when they're not at their best.
-Arvis
Underdog15
Friday, May 13, 2011 @ 8:28:49 AM
While I personally bought WKC, I'm not gonna sit here and tell you that WKC is better than GOW3 or Uncharted. jRPG's are my preference. I don't even like GOW games. Yet I'm not going to pretend they aren't as good as WKC.
You want PS3 owners to support jRPG's? Then make a high quality one deserving on AAA status. There hasn't been a AAA jRPG on consoles at all this gen, if you ask me.
Last edited by Underdog15 on 5/13/2011 8:29:11 AM
PorkChopGamer
Friday, May 13, 2011 @ 8:35:47 AM
Fane: It's just for people who hate the idea of RPG makers putting it on both systems. I'm not saying one group of gamers is better than the other. That was the point here. To illustrate the parity.
There are 3 games WKC,WKC PSP and WKC2
The reason I put UC2 and GOW3(awesome games!) is to solidify the point. People will say 360 gamers don't buy JRPGs, they Buy Halo and Gears. I say PS3 gamers aren't supporting them any better, they are buying UC and GoW.
Look at the multiplatform games. Eternal Sonata, Res o' Fate, Star Ocean. Just not selling on both really. That's the sad part. A lot of beauty out there on the shelves.
I remember a time when the term 'epic' would be exclusively used for RPGs in game world. Now action games get the tag and for some people that's enough. Why learn a battle system and grind and level up to awesome proportions of strentgh and magic, when you can pop in GoW3 and start riding a freakin' titan up Mount Olympus minute one.
Gaming is becoming Hollywood. Great action rules the charts, while the slower, more well thought out games are on the back burner. Should Demon's Souls, Valkyria Chronicles, and Heavy Rain sold as much as GoW3? Heck yes, in my opinion. Should Lost Odyssey, Blue Dragon(LOVE this one), and Alan Wake sold as much as
Gears and Halo? Dang straight, they should have!
Put aside partisan gaming, for a sec. The fact is we are seeing the genre we love(especially on this site) begin to fade. Yes, it is being replaced by games like Mass Effect(Mass Effect 2, my wife suspects something...), Fallout, Dragon Age, so the RPG lover in me has stuff to fall back on. But the JRPG is tops for me. I don't want it to go.
Underdog15
Friday, May 13, 2011 @ 10:07:35 AM
Yet, despite me liking these jRPG's, I can't say I would have ever recommended getting them at full price. (Although I did get Star Ocean on release... lol) I just remember playing jRPG's like Xenogears, Xenosaga, Dragon Quest 7 and 8, the final fantasies of yore, dotHack and Kingdom Hearts (although action rpgs), Legend of Dragoon, and i think... has anything this generation come close too ANY of these titles?!
My answer is no. I firmly believe that no one has developed a jRPG that is of AAA quality. But if you look at those titles, a majority of them are SquareSoft/Enix titles. It's not that I don't support jRPG's appropriately. I just really believe no one has made a truly made a top notch jRPG yet. Which to me says, the only ones buying are the people who love that niche of games.
I firmly believe that if anyone makes a AAA quality jRPG, it will do very well. Most of my friends have only purchased one jRPG this generation: Final Fantasy XIII. None of them were blown away by it. But they liked it ok. None of them are ever going to get the niche games like WKC or VC. I'm the only one in my circle that did. My friend Jesse did give WKC a shot, but he hated it. Make a sick Dragon Quest, FF, or Xeno-something? I guarantee most of my friends would get it.
Highlander
Friday, May 13, 2011 @ 12:58:53 PM
No, nothing has come close to triple A in the JRPGs this generation - so far. None have even come close to Xenosaga IMHO, never mind the classics of the PS1. However, White Knight Chronicles is very, very, very close to being triple A, and in my personal opinion merits that tag, though I am aware that many people disagree which is why it's not considered a triple A title.
However, it's close. Ar Tonelico Qoga is - from what I've seen so far - very good also, and although not a triple A title it is a very good game, at least on par with Star Ocean. Star Ocean has particular issues related to the game in terms of the near endless grind of random encounters.
But the thing is, JRPGs have - in general - always been more of a niche game. Xenosaga Episode 1 sold round about a million copies, and Episode 2 and episode 3 never eclipsed the first in sales numbers. the much larger sales of games like Final Fantasy has not always been reflected in the sales of other, very good, JRPGs.
Porkchop, White Knight Chronicles has yet to be released on PSP in the Western market and WKC2 has yet to see it's Western release either. To start talking about the franchise and claiming - as you have, that it's sold only a million or so over three games glosses over the fact that the game still has two major platform releases in two major markets. That makes your point a little dishonest because you're not really comparing like with like or telling the whole story.
I think that because of the success of Final Fantasy, we often forget that at it's heart, the JRPG is a niche product, with a distinct audience. You don't expect multi-million copy sales for every JRPG franchise. Yes, there are some that have been so successful that they have achieved mainstream success too. but in general, the JRPG remains a niche genre. As such, the sales of WKC are actually not bad at all.
___________
Friday, May 13, 2011 @ 4:21:14 AM
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BikerSaint
Saturday, May 14, 2011 @ 7:40:41 PM
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