Square Enix financials falter on DQIX delay

Fresh off acquisition talks, Japanese publisher slashes full-year revenue projections 17 percent, profits 62.5 percent on postponed launch of DS game.

Most companies are hunkering down, keeping their finances on a tight leash in anticipation of a long, hard economic winter. Square Enix isn't one of those companies, though, given that it announced this morning that it had placed an £84.3 million ($120 million) bid on Eidos, an offer that the UK publisher's board accepted. Pending regulatory and shareholder approval, the move would marry under one roof such franchises as Tomb Raider, Final Fantasy, Hitman, and Kingdom Hearts.

However, that isn't the only bit of news out of Square Enix today. Along with announcing its acquisition plans, Square Enix also said that it is significantly revising its full-year revenue and profit projections downward.

For the fiscal year ending March 31, 2009, Square Enix now expects net sales of ¥133,000 million ($1.46 billion), 16.9 percent off of its previous forecast of ¥160,000 million ($1.76 billion). Net income--that is, profit--is now expected to come in at ¥4,500 million ($49.7 million), 62.5 percent below previous expectations of ¥12,000 million ($132 million).

"While results for Games (Online), Mobile Phone Content, Publishing, and Others segments have been progressing at a rate exceeding the figures previously planned, Amusement (Taito Corporation) and Games (Offline) segments are projected to underperform the figures previously planned due to [a] severe business environment for Amusement, and the adjourned release of a major game, which was originally announced to be released in March 2009 for Games (Offline)," the publisher said in a statement.

Although Square Enix didn't explicitly say so, the game in question appears to be Dragon Quest IX. As reported by Japanese gaming magazine Famitsu, the Nintendo DS-exclusive installment in Square Enix's popular role-playing game franchise was delayed from March 27 to July 11, due to a "serious software bug." A North American release for the game has yet to be scheduled.

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16 comments
kingofcosmos231
kingofcosmos231

square enix will definately release it in the states so no need to worry.

FallenOneX
FallenOneX

The summer gives me more time to play it anyways. Gutsy to say that it was in fact a bug, if that is the case.

Generic_Dude
Generic_Dude

Hopefully we'll see a DQIX release date soon, or I'm going to have to learn Japanese.

especensor
especensor

"serious software bug" eh? hmmm.. I'll give them the benefit of doubt, because I know regardless of whether its true or not, it won't change the release date. but still. wth, how many times has this been delayed now? july 11th for a japan release. so basically, it won't hit the states till late 2010.. *sigh...

magusat999
magusat999

Don't forget they axed the DQIX playstation 2 game for the DS one - how much did they lose with that decision. Especially considering the PS2 is still out selling the PS3???

Caer_Death
Caer_Death

Better late than buggy. No US date, though? DQV'll have to suffice for now.

norabbitnofun
norabbitnofun

I am surprised that DQIX alone can account for such a big profit drop. I understand there is a long-term investment to get a game out, of course, but there still were quite a few on-going when last year's financial results annoucements came. I have to read these financial tables in details. :-)

10679
10679

ezikiell there is nothing wrong with last remnant. If you install the game into the hard drive than the game is fine and you will experience no technical issue i have been playing the game for more than 15hrs and i haven't experienced any technical issue.

Kleeyook
Kleeyook

Then again! Time to get DS. DQ and FF ad Zelda and HM rule!

etramleinad12
etramleinad12

Thank goodness its not Kingdom Hearts nor Final Fantasy being delayed.

ezikiell
ezikiell

I have been anticipating Dragon Quest IX, but because of the bug issue, it is wise for Square-Enix to delay its release until July 11. Why it delayed the release of a game from a respected franchise, but allowed the Last Remnant to released with technical problems is beyond me. It is best for the delay as Dragon Quest is big in Japan and the bugs in the game would create an angry backlash against Square-Enix.