Square Enix Cuts Earnings Forecasts

Square Enix Holdings announced today a revision in its earnings forecasts for the current term and the year as a whole. The original forecasts were made on August 7.

For the six months spanning April 1 through September 30, the company has increased its sales estimates from the previous 90,000 million yen to 90,500 million yen. It has lowered its net earnings forecasts from 7,500 million yen to 2,600 million yen.

A statement from the company listed a couple of factors as having contributed to the lowered earnings expectations. In addition to first quarter costs associated with its Eidos buyout, the company has allocated 2 billion yen to cover second quarter costs associated with voluntary retirement programs at its Taito and Square Enix subsidiaries.

As a result of the special losses in the first and second quarter, Square Enix has also lowered its earnings forecast for the year as a whole. The company now expects net earnings of 10,000 million yen, down from original forecasts of 15,000 million. Its sales and operating income forecasts remain unchanged.