Weak Console Sales and Final Fantasy XIV Trouble Lead to Losses at Square Enix
RPG giant shares full earnings report one day after announcing major losses.
Square Enix gave a preview of its losses yesterday. Today, it shared its full earnings report.
As reported yesterday, sales were down 34.8% from last year to 125,271 million yen. Operating income plummeted 74.1% to 7,324 million yen. The company saw a net loss of 12,043 million yen, compared to last year's net profit of 9,509 million.
In a statement today, CEO Yoichi Wada said "Our Group experienced significantly lower sales and profit during the fiscal year mainly due to weak performance of console game titles released during the year as well as the impact of a continued delay in billing for a key online title, which was newly launched during the year."
Although he didn't mention it by name, the "key online title" is, of course, Final Fantasy XIV. Square Enix continues to waive monthly billing fees on the PC version as it makes major fixes. It also delayed the PlayStation 3 version indefinitely and has not provided an indication of a release time frame.
Wada's statement also reiterated some of the contributors to the net losses that were mentioned in yesterday's announcement, including 4.5 billion yen due to development cancelations and 0.6 billion yen from earthquake related problems.
Top performing titles for the year included Dragon Quest Monsters Joker 2 and Kane & Lynch 2 Dog Days, both of which became million sellers. Browser simulation game Sengoku IXA enjoyed robust growth.
For the current year, the company expects sales to rise 3.8% to 130,000 million yen and operating income to rise 36.5% to 10,000 million yen. It also expects to return to the black in net earnings, with a projection of 5,000 million yen.
Wada said of the current year, “We are very focused on the Group's key strategic initiatives of globalization, becoming 'network centric,' and strengthening our own-IPs as we work to generate a substantial earnings recovery from the fiscal year ending March 31, 2013 and beyond."