Square Enix posts $26 million quarterly loss

Final Fantasy and Tomb Raider publisher posts marginally better sales than last year for the April-June period as Dragon Quest Monsters 3DS leads traditional game sales.

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Square Enix expects to turn a tidy profit for its current year, but it's off to a bad start. The publisher today reported results for its first fiscal quarter (the three months ended June 30), which saw net losses of nearly ¥2.1 billion ($26.4 million). For the same period the year before, Square Enix turned a profit of ¥690 million ($8.8 million).

Square Enix is hoping Eidos icons Lara Croft and Agent 47 can boost its full-year financials.

Despite the hit to the bottom line, Square Enix sales were up for the quarter. Citing the Japanese release of Dragon Quest Monsters: Terry's Wonderland 3D for the 3DS as a strong performer, the publisher posted sales of ¥24.9 billion ($316.5 million), up about 1.6 percent year-over-year. Square Enix also highlighted successes in the browser-based and mobile markets with the Japanese free-to-play title Sengoku Ixa and the social-focused Final Fantasy Brigade.

"The advancement of networking and digitalization, and the diffusion of smartphones have triggered a fundamental change in the business environment surrounding the Group, where content delivery measures to customers and business models are increasingly diversified," the company said in its report. "The Group views this change as an opportunity to capture new profit sources, and is making every effort to establish its profit base through expansion of content and services that conform to emerging customer needs, and launch of full-scale commercial services for major MMO titles."

Square Enix left its full-year financial forecast unchanged, with the publisher expecting to turn a profit of ¥9 billion ($114.3 million) off sales of ¥165 billion ($2.1 billion). Its remaining slate of games for the current fiscal year includes a number of high-profile new releases, including Tomb Raider, Hitman: Absolution, and next week's Sleeping Dogs.

Discussion

33 comments
Scarshi
Scarshi

Is it really that hard to retry the old formulas like FF VII, VIII, IX or even do a badass HD remake of all of them. See how your sales do then Squeenix!

 

Gary_Stanton
Gary_Stanton

"Fifteen" is the answer to Square's problems.

Leukocidin
Leukocidin

The market went to shooter games, and left the turn base games behind, leaving a window of opportunity.  Instead of seizing the non competitive market and turning out a profit they followed the rest of the sheep.  Here’s a wired idea, give the people that are paying for games something they really want like FFVII revamped.  Or follow other big titles that worked in the past, Shadow Hearts, Legend of the Dragoons.  It’s kind of cliché but make fun games and people will play, until then I’ll sit here playing my Playstation 2 playing cartoon games like Disgaea. 

 

VarietyMage
VarietyMage

"The Group views this change as an opportunity to capture new profit sources, and is making every effort to establish its profit base through expansion of content and services that conform to emerging customer needs, and launch of full-scale commercial services for major MMO titles."

 

Well, that just proves my suspicions...Squenix is a dying company.  MMOs are a dead-end, selling digital crack to crack addicts - they have to have more and more to get the same high as the first hit, eventually it stops satisfying them, and they're left with nothing except their craving for more.  Never shipping a finished product, never fixing all the bugs, and never giving the public a product they can keep forever.  RIP Final Fantasy, it's been wonderful (then Squenix crapped out FF13 and killed the series).*sigh*  First they came for my space-flight sims, and I said nothing.  Then they came for my city- and nation-building sims, and I said nothing.  Now they're coming for my RPGs...

SS_Gokou
SS_Gokou

Squeenix... you're becoming the next Capcom. Not listening to your fans results to those things. Release Type-0 in English and don't focus too much on Nintendo consoles/portables.

yuunnnnna
yuunnnnna

Bring Versus XIII you fucktards, its the only thing anyone w2ants to see SE dev. 

CptRexKramer
CptRexKramer

Ohhhhhh how I hope Tomb Raider is good.

Bahamut_10th
Bahamut_10th

Brendan looks like Alan Harper.

 

On-topic I wish for the worst for SE. Just so the only people I care about who still work in there can make their own companies seperated from Kitase, Toriyama, etc.

blackothh
blackothh

individually square and enix have made some incredible work, now they dont know what they are doing anymore

Hiricine
Hiricine

All Square has to do is crank out Final Fantasy Games and new IPS (or keep releasing old IPS) like they did in the late 90's.  Look at this timeline

 

1997-- Final Fantasy VII

1999-- Final Fantasy VIII

2000-- Final Fantasy IX

2001-- Final Fantasy X

2006-- Final Fantasy Xii

2009-- Final Fantasy XIII

 

Final Fantasy 7 and 10 were released within 4 years of each other.  By contrast, 10 through 13 were released within 9 years of each other (which is one less game).  The longer development cycle obviously hasn't produced much better games either.  

brgreen
brgreen

Bring Final Fantasy back to its roots.

SirNormanislost
SirNormanislost

Well what games have they released in the first Q? A sequel to the worst FF game ever made and....... I can't even think of anything else they released on the plus side they've got some good looking games coming out hitman and the FF10 update

EbenOlemaun
EbenOlemaun

If this news is in any way surprising to any of you then we are all going to die. Square Enix as a publisher is not too shabby given Deus Ex 3, Tactics Ogre: LUCT, and a few others. But as a developer? SE is a lot like a fart, it is noticeable at first but quickly disappears into the couch cushions and you might get a hint of it later but it is never as good.

Roots_Of_Rhythm
Roots_Of_Rhythm

I'm glad they're still making the Dragon Quest games in the classic JRPG way. God knows Final Fantasy has gone down the proverbial crapper.

finalkain
finalkain

Comon SE, I still love yas, Give us Some Legacy of Kain and some FF Versus plzkthx!

lilrobda1
lilrobda1

Kingdom Hearts 3D. Nuff said.

SolidTy
SolidTy

SE was better when it was S and E separate.

servb0ts
servb0ts

YES!! Teach SE a Lesson Stop making Sequesl to Crappy Ass Games and Bring out Versus & Final Fantasy XV. Stop BS with spinoffs and DLC Practices, you only lose more an more fans the longer you drag out Weak Ass Games and Prolong Games People Want.

thom_maytees
thom_maytees

It would be interesting how the current quarter will fare with major releases like Dragon Quest X.

SavoyPrime
SavoyPrime

Would probably be doing better if they stopped developing wackass games. They seem to be doing better on the publisher side of things these days. My have the mighty have fallen. They were better when they were Squaresoft.

nurse_tsunami
nurse_tsunami

SE needs to put their minds to work on developing new IPs.  Milking Final Fantasy, Tomb Raider, Deus Ex, etc. forever isn't going to be successful.  Put on your thinking caps and come up with something fresh and compelling!

BigAl519
BigAl519

Note to Squenix: Next time, DON"T make a sequel (possibly 2) to the worst FF title to date. Its not a hard concept........

MJ12-Conspiracy
MJ12-Conspiracy

Deus Ex 3 next??     crickets??? damn

Blood omen 3??  did I hear a mouse?  crickets?? damn....

Thief 4???   more crickets damn....

IDK, joking aside I'd rather steal stuff from rich people than raid tombs....I'd rather see the next step for Deus Ex whatever it will be or the next Blood Omen, forget Raziel, Kain is where it's at.....he's the vampire of vampires in games aside from Vampire The Masquerade that is....

I got nothing against Lara Croft or her games it's just we've had more than enough of them this gen....at least I have.

digitaltiger
digitaltiger

The only games I like to play from SE are the Dragon Quest games, the rest of what SE puts out doesn't intrest me. If SE made more intresting games they would be doing better.

decoy1978
decoy1978

 @Hiricine They got hit by the MMO bug and can't seem to shake it off. Until they decide to just scrap FF MMO's thats where all their focus will lie. SE wants to make the easy dollar but finding that its not easy... -_-

DragonRift
DragonRift

 @thom_maytees Being that Dragon Quest X is becoming an MMO, I know they aren't getting my dollar, and I LOVE the series.

DragonRift
DragonRift

 @digitaltiger In terms of what games Square made themselves?  God, everything has been a disappointment.  Enix still tries, so I can't hate them just yet.

 

But, don't tell me you avoid everything SE publishes.  If so, you're missing out on awesome titles like Deus Ex: Human Revolution and Just Cause 2.  :O

Hiricine
Hiricine

 @decoy1978Its so true.  Their development team went from making the gold standard of single player games to making second rate MMOs.  How insane is it that FF XIV flopped and now instead of moving on and putting more effort into getting XV on the table, they're revamping XIV.  

Bartz77
Bartz77

 @DragonRift Same, I just don't see why they would suddenly change the whole genre and gameplay of one of their flagship series.

digitaltiger
digitaltiger

 @DragonRift

 I play about 95% of the time rpg's and srpg's, I just can't seem to get into other genre's. So games like the one's you mentioned just don't catch my eye. They are probably good but just not for me.