Square Enix Braces Itself For 'Extraordinary Losses'

By Colin Tan on May 13, 2011, 2:59AM EDT

Square Enix have revised their initial forecasts for the fiscal year ending March 31, 2011. Square Enix is expecting net sales of 125 billion yen and a net loss of 12 billion yen (up from the previous estimate of 8.8 billion yen). Initial forecasts called for 130 billion yen in net sales and a net income of 1 billion yen.

Square Enix cited "weak performance" of console games released during the year as well as the "continued delay in billing for a key online title," Final Fantasy XIV. In addition, project cancellations and losses due to the March 11 quake and tsunami disaster also factored into the "recording of total extraordinary losses of 16.0 billion yen."

"In the fiscal year ending March 31, 2012, 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," said Square Enix in a statement.

2012 will see the release of several new games from Square Enix and its subsidiaries, Eidos and Obsidian, including Deus Ex: Human Revolution, Dungeon Siege III and the new Tomb Raider.

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