Square Enix Forecasted Profits Down 89 Percent

By Colin Tan on February 3, 2011, 8:46PM EDT

Square Enix's forecasted profits for the 2010 fiscal year are down 89 percent compared to the previous year. They are expecting a net profit of $12.2 million.

Square Enix had earned $22.3 million in sales for the first nine months and $1.2 billion in sales. Revenue was down 28 percent compared to the previous year.

CEO Yoichi Wada explained that this was a result of "intensifying competition in the console game market," but was optimistic for the upcoming year.

"The company has implemented organisational changes in the third quarter while also working to better select and further strengthen our most competitive titles," said Wada.

"In other platform areas including PCs and smartphones, we have created successful examples of new content such as Nicotto Town and SENGOKU IXA. By pursuing these two independent markets, we are raising our ability to succeed in diverse business models."

Regardless, both Kane & Lynch 2 and Dragon Quest Monsters Joker 2 sold over a million units in the third quarter. In addition, there are several more titles in the pipeline due for a Q4 release: Dissidia 012 Duodecim Final Fantasy, The 3rd Birthday, Tactics Ogre: Let Us Cling Together, Puzzle Bobble 3D, Tomb Raider Trilogy, and Final Fantasy IV: Complete Collection.

The highly anticipated Deus Ex: Human Revolution will not see release until Q1 of the new fiscal year.

Source: GamesIndustry.biz

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