Final Fantasy publisher Square Enix has told investors it may announce a loss of about 42 million when it reports on trading for the first half of its financial year.

[Update: Square Enix on Tuesday reported a net loss of 42,730,000]

The group forecasts sales of about 475 million (it's currently tracking 450m), but it expects to report a significant loss when factoring in operating expenses, softness in HD game sales and punishing exchange rates.

As well as a weakened arcade business in Japan, Square Enix admits that "sales of a major HD game title have been growing at a slower pace than expected".

[Update: Square Enix on Tuesday said Sleeping Dogs shipped 1,510,000 copies in the six months ended September 30.]


Though the company did not specify which game, its biggest release this year was the new IPSleeping Dogs, a title which stood atop the UK charts for a number of weeks and, during August, was the best-selling game in the US with 172,000 copies shifted.

Square Enix expects its full year profit to come in at about 27 million.


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