Square Enix Q1 earnings slip, DQIX ships 3.5M

Japanese publisher reports 1.2 dip in April-June revenues, as losses rocket to $17 million following purchase of Tomb Raider house.

The April-June quarter was been a busy one for Square Enix. While many game companies have been tightening their belts due to the increasingly distressing economic climate, Square Enix pulled the trigger on its acquisition of top British publishing house Eidos for £84.3 million ($138 million). The move marries under one house such franchises as Final Fantasy, Tomb Raider, Kingdom Hearts, and Hitman.

No word on whether DQIX will adventure outside of Japan.

Reporting on its earnings results for the period, Square Enix has now revealed how that expenditure has impacted its first-quarter bottom line. For the three-month period, Square Enix saw revenues slip 1.2 percent to ¥29.4 billion ($302 million).

The Eidos spend created a pronounced profit shortfall during the quarter, however. Operating income crashed 82.8 percent to ¥594 million ($6 million). Square Enix also flipped its ¥2.9 billion ($29.7 million) income during the same period last year to a ¥1.7 billion ($17 million) loss for the April-June quarter.

Breaking out its business by segments, Square Enix said that its Games group generated sales of ¥8.5 billion ($87.7 million), a 7.2 percent year-over-year climb. However, thanks to the Eidos acquisition, the Games group generated a hefty operating loss of ¥992 million ($10.2 million), down from the ¥1,665 million ($17.1 million) profit the segment turned in during the same period a year ago.

Kingdom Hearts 358/2 Days saw release in Japan during the quarter and led Square Enix's sales with 490,000 units. The DS title is expected to release in North America on September 29.

Though it wasn't included in the publisher's earnings results, Square Enix also provided an update on Dragon Quest IX, which has been a mainstay on the weekly Japanese sales charts since launching in July. Through August 5, Square Enix has shipped 3.5 million units of the game, with 3.39 million units having sold through as of August 2. Square Enix has not yet said whether it plans to launch the title in regions outside of Japan.

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34 comments
hero-in-error
hero-in-error

to kavadias1981 no, he didnt call you a idiot, if he was going to call you a idiot he would of said "you idiot" he was saying that people in general who enjoyed squaresoft games were idiots, he wasnt specific to you, so relax, smoke more pot and enjoy your squaresoft games

kavadias1981
kavadias1981

@KoruKinshi So you are calling me an idiot are you?

leeko_link
leeko_link

"Square Enix has not yet said whether it plans to launch the title in regions outside of Japan." Yes they did, Square Enix's CEO Yoichi Wada already said that they are considering releasing DQIX overseas but until it's decided the game won't launch outside Japan until April 2010. IGN had the source.

KoruKinshi
KoruKinshi

You're kidding, right? Square got greedy and kept feeding it's gravy train for IDIOTS...namely FF and Kingdom Hearts. Dragon Quest IX? That's an Enix title, and *THAT*...is a quality game, much like Valkyrie Profile and Star Ocean. Enix and Tri-Ace have NOTHING to do with Square's side of gaming. Enix should have never saved Squaresoft after the FF movie debacle. They should have let them die and burn a hole in the earth, where they belong.

kavadias1981
kavadias1981

SE haven't really interested me since, well, since they became SE. SquareSOFT were a quality company that churned out quallity on a regular basis with the 90's being their definitive decade; I think we can all think of a good few SS games from back then that we still hold dearly. But since bloody Enix stepped in all their games just seem to be crap to very good and nowhere near the standard we became so used to.

Gammet25
Gammet25

It'll all work out when final fantasy 13 and order of war get released soon. I hope. (+Supreme Commander) The company need to be more organized caused they've started on too many games and that wasn't very wise considering their staff number. Hope this company get pull itself together next year.

Cheddarchet
Cheddarchet

Didn't Nintendo already say they intend to help make the Dragon Quest name big out West w/ Dragon Quest IX? Sounds like a confirmation to me...

GioHero
GioHero

They need to spend more money on their creativity. Like hiring more artists to get their jobs done. Releasing games on time instead of delaying. Keeping up with other companies who actually stay true to the people. I mean, for example, they take forever to release one Final Fantasy game or even now Kingdom Hearts. I love Squaresoft but I have to remember this isn't Squaresoft anymore it's Square-enix. ^....^ My favorite Square game is Final Fantasy VI....I still love it! So much!!!!!!!!!

-Celeste-
-Celeste-

Maybe it has something to do with them taking forever and a day to actually create and release a NEW game instead of another port of past software. 5+ years for the development of each FF game is getting ridiculous. They need to put out quality stuff on a timely basis and quit trying the use filler in between.

GetDaved
GetDaved

They haven't decided if they will release DQ9 internationally yet!??! They were just starting to gain momentum back with DQ as a brand after the long silence after DW4 came out for NES.

Thirdrail1
Thirdrail1

I have a solution. Release Final Fantasy XIII before the current generation of gamers grows old and dies. Problem solved!

NuKkU
NuKkU

well of course they will lose money i mean they just bought a big company and the company hasnt released any games yet Even Square has never been the same since they switched to being Enix(SquareSoft was so much better) i still like Square Enix so hope this doesnt affect them much

kongii29
kongii29

Man they need to release KH3 man!!!

SquareEnixFan13
SquareEnixFan13

@VenomRitual - Woops, sorry, I seem to have had them switched, I don't know why I said that. Everyone I had them switched! Sorry for my human mistake. :D

Batman_Vengence
Batman_Vengence

Poor Square...I was really looking forward to the Dragon quest installment,too.

ChidoriBoyU
ChidoriBoyU

@texasgoldrush then you say the KH series is bad the TWEWY series is bad yeah i can say square screwed up with some FF titles but it's still an amazing company

texasgoldrush
texasgoldrush

Square is not what is was in 1994 and 1995 when FFVI, Chrono Trigger, and Seiken Densetsu 3 was released, that was their creative peak.

punanisher
punanisher

@TheKungFool Yeah dude, exactly the way I feel. All of those games were epic. Now it is all re-releases and Chrystal Chronicles junk with a decent game peppered in every now and then.

kiramasaki
kiramasaki

wow i had to vomit in my mouth when they put tomb raider, and especially hitman in the same line as Kingdom hearts and Final Fantasy ; i still dont see the reasoning here, unless they completely overhaul those franchises i dont seem them appealing to their normal fanbase (square enix fanbase), and respective fanbases of hitman and tomb raider have been failing for a while now

lamprey263
lamprey263

yeah, the Eidos buyout is probably to blame for the loss of earnings, other than that some companies see lost revenues in one quarter over the previous year's quarter because the previous year had some significant titles released and that's not always the case the following year (thus an earnings loss)

VenomRitual
VenomRitual

@SquareEnixFan13 O_o you don't have a DS but you want more info on 358/2 days? and birth by sleep is for the psp so not having a DS wouldn't matter.

Sharhan96
Sharhan96

pretty sure they will make up for their losses eventually....

TheKungFool
TheKungFool

SQUARE-ENIX has been brutal for the last few years. Remember 1995-2002 when you had quality stuff like Vagrant Story, XenoGears, ChronoCross, Final Fantasy VII, Parasite Eve etc.!? Now all we get are DS/PSP ports/remakes, Crappy sequels like Dirge of Cerberus and FFX-2 and WiiWare minigame crap. God, FFXIII cannot come soon enough.

shadowysea07
shadowysea07

they'll go back up in march when ff13 comes out.

punanisher
punanisher

Release a true Xenogears sequel/prequel, a decent Final Fantasy game and a 3rd Chrono game and I will buy 100 copies of each. I swear, 12 years ago I would buy anything Square released and it was always awesome. These days, not so much.

Bpg3D
Bpg3D

Maybe Square should stop giving their creative directors unlimited freedom and stop making the crap they want to make and go back to making what people want and what people buy.

Treifla
Treifla

er, 358/2 days is a DS title as well

Sovereign_13
Sovereign_13

I just realized that the next Hitman game might be a JRPG.

SquareEnixFan13
SquareEnixFan13

Well DQ9 and KH:Birth by Sleep, don't really apply to me because I don't have a DS, all I want is more info on 358/2 Days.

Flipyap28
Flipyap28

I hope this game is as good as it sounds, Japan seem to really love this. Oh, and dont forget Kingdom Hearts, I need that badly