Square Enix Reports Losses in Tough Console Climate

Browser and social games are picking up the slack.

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Square Enix Reports Losses in Tough Console Climate
It's not been a great month for a number of old-school console publishers - a list that now includes Final Fantasy creators Square Enix. The Japanese company has reported a loss for the nine months ending December 31st 2012, owing to "the increasingly difficult condition of the world-wide console game market."

The publisher notes that the unstable nature of the console market at it stands today has resulted in the company "struggling to achieve a fair expected return on its investment." Or maybe it was just the abundance of mediocre Final Fantasy XIII titles coupled with the lack of Kingdom Hearts ones. Net losses hit ¥5,745m, and an operating loss of ¥4,853m was also reported. However, net sales had increased from last year to ¥102,795m (compared to ¥95,738m).

Its digital division didn't fare much better - although net sales were up 7.7 per cent to ¥57,827m, it has blown last year's operating income of ¥12,451m, transforming it into a ¥392m loss.

Where there is trouble in console paradise, Square Enix is finding respite in its exploration of new platforms. Sengoku IXA, its browser game, and the Final Fantasy Brigade social network game are said to be generating “acceptable profit”. MMORPG Dragon Quest X "has been showing steady progress."
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Comments

Johnathan 5 Feb 2013 16:32
1/2
"the abundance of mediocre Final Fantasy XIII titles coupled with the lack of Kingdom Hearts ones."

2010: Kingdom Hearts: Birth By Sleep & Final Fantasy XIII
2011: Kingdom Hearts: Re:coded & Final Fantasy Type-0 (if you count it)
2012: Kingdom Hearts: Dream Drop Distance & Final Fantasy XIII-2

Looks pretty even to me in the number of games :)
Big Cheese 5 Feb 2013 23:31
2/2
If they want some of my money, they can put Secret of Mana, Terranigma and Seiken Densetsu 3 on the 3DS Virtual Console, then release Crisis Core: FF7 digitally so I can play it on the Vita.
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