Square-Enix slashes profit outlook by 90%

Jan 13, 2006
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#1
(Reuters) - Japanese video game maker Square Enix on Thursday slashed its full-year net profit forecast by more than 90 percent to far below the market consensus and said it will postpone the launch of two key game titles.

Square Enix said in a statement it is delaying the rollout of the latest installment in its "Deus Ex" game series until the financial year starting in April. It had initially planned the launch for the January-March quarter.

The company is also postponing the launch of "Final Fantasy 14" for Sony's PlayStation3 game console for an unknown period. The game was originally slated to hit store shelves in March in Japan.

Square Enix cited slow sales and industry criticism of some of its major game titles launched earlier this year, and said it wanted to concentrate on achieving high quality for its upcoming titles.

"We came to realize that our management priority is to improve the development of our digital-entertainment products," the company said in the statement.

Square Enix, known for its blockbuster "Dragon Quest" franchise, cut its net profit forecast to 1 billion yen ($11.9 million) for the year ending March 31 from 12 billion yen previously. That is far below the average forecast for an 11.3 billion yen net profit in a poll of 20 analysts by Thomson Reuters I/B/E/S.

It chopped its operating profit forecast to 8 billion yen, from 20 billion yen previously and below market expectations for 20.4 billion yen.

The game maker is holding a news conference in Tokyo from 4 p.m. (0700 GMT). President Yoichi Wada will attended.

Square Enix shares closed down 1.4 percent at 1,599 yen ahead of the announcement.
http://www.reuters.com/article/idUSTRE6BF11H20101216

WOW. Not looking so good in Squareville. Will Wada's head roll?

Seems to follow suit with Namco's recent announcement.
 
C

Captainnippon

Guest
#5
[QUOTE="radgamer420, post: 5315783]Square-Enix games have been crap this gen so I'm not surprised. Come to think of it so have most Japanese games this gen.[/QUOTE]

Come to think about it so is most American games... It's just garbage.
 

Lefein

Ultimate Veteran
Jun 9, 2005
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#9
I think they've had a few games pushed back from Q4 FY10. That being said, that is one massive profit slash!
 

Fenix

Elite Sage
Aug 19, 2007
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#10
[QUOTE="mickice, post: 5316055]Capcom must be doing alright tho? Riding on the PSP with Monster Hunter.[/QUOTE]

Thats probably the only reason there doing okay
 
Jan 11, 2008
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#13
SquareEnix have become too bloated and their management is to blame. The only person at SquareEnix with the right mentality is Nomura. He's passionate about games, spends the most amount of time thinking about what the community wants, replies to the community and gets on with it.


  • SquareEnix announce projects too early, meaning that they fail because the weight of expectation on them is too great.
  • They greenlight too many dud projects. They need someone there competent in project development.
  • They blame external factors too much. They need to take a long hard look at themselves and recognise that the Japanese game development community will get better and grow if they invest into it. Develop tools better, liase with the West, work with the platform holders more directly.
  • Have better awareness of a franchise's future. They don't seem to have a roadmap or plan of where they'll be in 10 years. How can you aspire to something without a plan? Capcom are sorting it out, Namco have a plan, Sony are always ahead of the curve, Nintendo constantly innovate. . .
  • Get rid off the fluff. There are some development teams and staff they work with that don't cut the mustard any more.
Wada is awful. They need to start to cut the fat and become more inovative. Capcom have managed to develop IP's with western appeal without having to buy out a (failing) western publisher. Square need to do the same.
 
Jan 13, 2006
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[QUOTE="Sufi, post: 5316057]What was Namco's recent announcement?

I don't feel bad for SE, they had that **** coming to them.

I mean, make good games, make lots of them and make lots of money, simple.[/QUOTE]

http://scrawlfx.com/2010/12/namco-bandai-shifts-development-focus-to-japan

Namco has shifted development back to Japan. Enslaved bombed and a few more I think.

[QUOTE="Galvanise_, post: 5316132]Wada is awful. They need to start to cut the fat and become more innovative.[/QUOTE]

Remember it was not so long ago that Wada made the statement that he didn't want the devs being innovative. :lol:


Really, who didn't see this coming? Making exclusive deals on 360 while ignoring where their real fanbase is located. :snicker

The big 3 Japanese developers are learning I think. Dare I say that Capcom has a very big lesson coming on that new "DMC".
 
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ddPLaNeT

Forum Elder
Apr 7, 2008
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Seriously, SquareEnix are the biggest mess this generation !

Last gen they were the kings and were absolutely respected and feared in the bizz. Now look where they are, releasing crappy games, having trouble making profit, not knowing where to put their focus etc.

Square had their biggest success on one platform at a time, this gen they wanted to appeal to the west and in my opinion this is where their problems started + their douchebag of a president didn't help either...

I say this is a good lesson for them to learn, maybe next gen they'll focus their ressources better like they used to do. I miss the good ol Square with some of the best rpgs in the world. Where's Chrono Trigger, where's the big hits actually ?

This is not the SquareEnix that i used to love so much.
 

Fenix

Elite Sage
Aug 19, 2007
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#18
[QUOTE="Kauldron, post: 5316152]http://scrawlfx.com/2010/12/namco-bandai-shifts-development-focus-to-japan

Namco has shifted development back to Japan. Enslaved bombed and a few more I think.



Remember it was not so long ago that Wada made the statement that he didn't want the devs being innovative. :lol:


Really, who didn't see this coming? Making exclusive deals on 360 while ignoring where their real fanbase is located. :snicker

The big 3 Japanese developers are learning I think. Dare I say that Capcom has a very big lesson coming on that new "DMC".[/QUOTE]

"DMC" is right. Im not giving that game the light of day in my collection, maybe if it gets good reviews and has a price of $20

Im all for reboots, and all that ****. But when you drastically change a much loved character is where I draw the line.
 
May 20, 2007
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[QUOTE="ddPLaNeT, post: 5316180]Seriously, SquareEnix are the biggest mess this generation !

Last gen they were the kings and were absolutely respected and feared in the bizz. Now look where they are, releasing crappy games, having trouble making profit, not knowing where to put their focus etc.

Square had their biggest success on one platform at a time, this gen they wanted to appeal to the west and in my opinion this is where their problems started + their douchebag of a president didn't help either...

I say this is a good lesson for them to learn, maybe next gen they'll focus their ressources better like they used to do. I miss the good ol Square with some of the best rpgs in the world. Where's Chrono Trigger, where's the big hits actually ?

This is not the Square Enix that i used to love so much.[/QUOTE]

I agree. They were already appealing to the West with what they were doing, which was not trying to.

I knew once Square and Enix merged, things were going to go downhill because they effectively eliminated the jRPG competition that kept the old Squaresoft coming out with such good games - and albeit more frequently. After VIII was finished, the team could work on X with IX (my favorite) coming out between the two.
 

Kratos88

Apprentice
Jan 31, 2009
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Ouch sounds like Square is reaping what they are sewing the whole let's give all our games to MSN isn't working out eh? there was a time that they were my favorite devs when they cared about making amazing things and less about money because guess what it you make amazing things the money will follow suit......perhaps one day they will learn.
 

Sieghardt

All-Knowing RPG Tyrant
Aug 19, 2008
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not surprising. Friont Mission Evolved ranks among humanities worst crimes and they pissed away tens of millions trying to push call of duty in japan
 
A

APetePerson

Guest
#24
as long as its kojima going under, I don't care

FF used to be good, but with this generation, they expected to be good, and as a result, didn't try
 

Bio

Veteran
Aug 4, 2007
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Battlefield
#25
The state of S-E is just...sad. Really sad.

Here's hoping Versus XIII can turn things out a bit. I'll remain optimistic, but I'm not holding my breath or anything.
 
Nov 23, 2005
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[QUOTE="ddPLaNeT, post: 5316180]Seriously, SquareEnix are the biggest mess this generation !

Last gen they were the kings and were absolutely respected and feared in the bizz. Now look where they are, releasing crappy games, having trouble making profit, not knowing where to put their focus etc.

Square had their biggest success on one platform at a time, this gen they wanted to appeal to the west and in my opinion this is where their problems started + their douchebag of a president didn't help either...

I say this is a good lesson for them to learn, maybe next gen they'll focus their ressources better like they used to do. I miss the good ol Square with some of the best rpgs in the world. Where's Chrono Trigger, where's the big hits actually ?

This is not the SquareEnix that i used to love so much.[/QUOTE]You are right, the square you once loved so much was Squaresoft (Square Co., LTD.) SONY had some 20% share in Square Co. They should have stepped up and purchase the whole thing in 2001 when spirits within nearly bankrupted them.
 

Thorzilla

Elite Sage
Feb 4, 2006
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SE needs to put its **** together. This gen, SE has been a big, men's night club and their franchises its whores. Bunch of jerks whoring the damn franchises like there's no tomorrow.
 
C

Captainnippon

Guest
#29
You guys are too funny. Everyone making this sound like it's the end of the world for SE or something...

Square Enix, known for its blockbuster "Dragon Quest" franchise, cut its net profit forecast to 1 billion yen ($11.9 million) for the year ending March 31 from 12 billion yen previously. That is far below the average forecast for an 11.3 billion yen net profit in a poll of 20 analysts by Thomson Reuters I/B/E/S.
The company is forecasting at $12 million profit for March 31st 2011... Of course that could change to $20 million if businesses pick up in the holidays...

Still SE is making money, they're not losing money. SE haven't lose money since the merger of Square and Enix... Considering the delay of a few major games and still making a good $12 million profit I say that's pretty good in my book.
 
Jan 13, 2006
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[QUOTE="Captainnippon, post: 5316456]You guys are too funny. Everyone making this sound like it's the end of the world for SE or something...



The company is forecasting at $12 million profit for March 31st 2011... Of course that could change to $20 million if businesses pick up in the holidays...

Still SE is making money, they're not losing money. SE haven't lose money since the merger of Square and Enix... Considering the delay of a few major games and still making a good $12 million profit I say that's pretty good in my book.[/QUOTE]

I cannot see how in the world that you are trying to spin this into something good.....seriously.

Full steam ahead, eh? :lol: