Square Enix slashes six-month forecast by 10%

Japanese publisher says "smaller growth" of new software spurred revenue revision down to $843 million, profit to $21 million.

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Square Enix began its current fiscal year on the lifting wings of a dragon--Dragon Quest Monsters: Joker 2, that is. During the April-June period, the Japanese publisher saw production enough out of the DS title to post a ¥1.81 billion ($22.5 million) profit on revenues that were up 11 percent from the prior year to ¥32.5 billion ($403 million). However, Square Enix has been unable to sustain that pace through its second fiscal quarter.

Front Mission Evolved was among Square Enix's releases during its problematic second quarter.

With Square Enix expected to release its six-month earnings later this week, the publisher today preannounced a severe downward earnings revision for the April-September fiscal period. Having previously forecast sales of ¥76 billion ($942 million), Square Enix now expects to pull in ¥68 billion ($843 million) for the period, a 10.5 percent decrease.

Profit projections also fell sharply. With initial six-month income estimated at ¥2.4 billion ($29 million), Square Enix now expects to bring in ¥1.7 billion ($21 million), a change of 29.2 percent.

As for the why, Square Enix said new game software releases saw "relatively smaller growth," though no specific titles were named. Square Enix released a handful of high-profile titles during the period. Included among these was the tepidly received Front Mission Evolved, as well as Kingdom Hearts: Birth by Sleep, Kane & Lynch 2: Dog Days, and Lara Croft and the Guardian of Light.

The publisher also attributed its revision to an appreciation of the yen in foreign currency markets, as well as losses associated with the sale of equipment and property and a change in accounting standards.

Square Enix believes it will be able to compensate for the second-quarter weakness through the rest of its fiscal year. Therefore, the publisher said that it has not revised its full-year earnings projections.

Discussion

133 comments
acerpg007
acerpg007

@naoto-kun Don't forget about Vagrant Story, a series that they also forgot..

McAndrew_basic
McAndrew_basic

@ Young_Charter I agree The spiral downward of Square began with the departure of Hironobu Sakaguchi followed by the release of Unlimited Saga on the PS2. In addition Lost Odyssey by Mistwalker was a gd amazing game. Thats where the great rpg's went to.

naoto-kun
naoto-kun

do you know why square enix now sucks because it didnt DO A NEW CHRONO SERIES for god sake stop doing small games in ds and start in ps3 i mean they know how to do graphics more than anyone i know and i am waiting for chrono for a lot of years so lets hope for new chrono cause i know its worth it.

Hanzoadam
Hanzoadam

square-enix need to concerntrate with making great games again instead of concertrating on buying out more and more companies. When was the last time we had a good FF game? besides Crisis core and FFIV remake

Young_Charter
Young_Charter

@snaggleoooo: I don't care what no one says.. I think they've been working on FFVII remake since the tech demo released.. What kinda company is dumb enough to show a joke video of how a highly fan based game looks for PS3 ? They should've seen from the get go that they were going to get harassed about that one..

snaggleoooo
snaggleoooo

Just start remaking FF7-10. Give us games we already know are awesome (especially 7 & 10) with updated graphics while you work on a new FF that is truly amazing; and just because it has great graphics doesn't make it awesome (I'm looking at you FF13).

Bangerman15
Bangerman15

they need to stop making their games soooo japanese influenced i wanna say. i mean gosh stop putting these emo kids(edge,hope) in your games its so damn cheesy lol. and ff13 battle system is so whack i cant even find it in myself to finish the game they are really losing it... i mean they tried making it all jumping around 20 feet in the air and crap like star ocean... i dont mind it in star ocean since the battle system greatly makes up for it but they dont need that crap or emo kids in FF. and look at ff13 versus, the main character looks like some hardcore emo dude too, im not having my hopes up too high for that game >_>

rholding2000
rholding2000

well they need to do something, just got rid of my ffxiv subscription even though i have anothe fre month, that game IS the worst ive played considering modern times, ive always liked the ff games but they have taken a dive 7 obviosly being great, i liked 10 but since theyve made the worlds more realistic to life (yeah . . go with me on that!) the adventures have got a bit boring, in ff13 and the hope character, why has there always got to be a snivveling rat! "oh please, im too weak, but im sure if we all try together . . ." . . . . . . . stfu

Kid2812
Kid2812

Hurry up and release Final Fantasy versus 13, that game just looks like it could be the best Final Fantasy game. The game looks like it will be more combat focused like Mass Effect but still make a wicked story. FFVXIII is going to be the first FF game set in reality which would be great and a new twist to the series

HawkZero
HawkZero

SE have so many classics, They could easily generate profit by just expanding PSN's ps1 library. I would love to play xenogears again. They could also re-release Mario RPG on DS. I imagine it would take little effort and money to convert these titles to the new systems.

okassar
okassar

It would all be good if the (relatively) new Final Fantasy wasn't so underwhelming. I'm really waiting for another FF as mind blowingly amazing and surreal as FF 7.

Young_Charter
Young_Charter

@frostybanana- I think they're better off calling themselves Circle Enix.... It's all round now... All this Western style stuff needs to stop.. If they're going to do something western.. They need to make a Elder Scrolls game taking place in Feudal japan lol :D

frostybanana
frostybanana

It's foolish to expect this company to churn out any quality RPGs. They haven't done so in a VERY long time and at some point you have to realize that they are not the same company Squaresoft was.

Young_Charter
Young_Charter

@starwarsjunky - I agree bro.. It's ridiculous... I'm going to say this for everyone.. I know it sucks that SE isn't on they're RPG strike like they used to be.. BUT I AM SURE you haven't played every single RPG game they've made for PS1 and PS2 lol... Not even I have when they have so much games out for it.. I suggest you all to back track a bit.. That's what I've been doing.. For quite awhile now..

Axel450
Axel450

@Vrygar777 Correction: 2 years, not four, with the release of RE:CoM Ur kinda right, we all need a KH3, but who would be the main character(s)? Maybe it should flip between times, like once ur playin as sora/roxas, then ven, terra, or aqua, then having a shift in the time line to make them all meet?

piguren
piguren

I wonder if SE is even reading this....

starwarsjunky
starwarsjunky

they used to be the KING of rpg's...now theyre all horrible. its very sad to see them fall like this

jelevel
jelevel

Square Enix has lost the right track . They need new , fresh ideas in case of gameplay and script and stop copying the western style of gaming . The graphics and sound are always awesome , just a little bit more imagination..Final Fantasy...

Vrygar777
Vrygar777

@Axel450 I think Kingdom Hearts isn't selling well because they haven't made a console release in what, 4 years? All these DS and PSP titles are nice but I think what people are really looking for is Kingdom Hearts 3. As far as FF goes, I liked XII but pretty much everything else since X has sucked big time.

RPG_Fan_I_Am
RPG_Fan_I_Am

I disagree about FFX-2, I think it an ok story, sure playing as 3 chicks is annoying as hell, but the gameplay of it was good. I also really liked the fast paced theme of the game. and the fact that you had alot to do in the game as far as side quests go. The only thing I kinda disliked was the fact that you can make 3 beserkers and let them stagger lock every enemy in the game. O and the 3 annoying chicks the entire time...

JuSs2Fr3Sh
JuSs2Fr3Sh

all i know is that ever sens SQUARESOFT!! became Square Enix!... it has BEEN LOSING IT! just take a minute and look back.. there last best game with best gameplay and STORY! was FFX... after that came FFx-2 which was SE... an sucked!... you might not agree with this but so many people do!

drummerdickens
drummerdickens

I've been disappointed by every FF game since 10. FF13 was bloody awful.

Kajiuro
Kajiuro

@Young_Charter Honestly I haven't liked any of their games since the change from PS1 to PS2; sloppy, unpolished, boring.

GamingBoy2009
GamingBoy2009

Kingdom Hearts is one of their top series and with the release of Birth by Sleep, you would think that their profits would be better than this. Oh well, they are still in good shape compared to other publishers whos earnings and sales are in the red and those who announce layoffs. Im sure FFvsXIII will reignite peoples interest in SE.

tu2pac
tu2pac

[This message was deleted at the request of the original poster]

Breyant
Breyant

Yeah hopefully Versus XIII with reignite everyone's appreciation for SE games. I'm a long-time, self admitted SE fanboy and even I can see the fault in their games from X-2 to XIV.

Young_Charter
Young_Charter

almost every game they've made for PS3 & 360 honestly sucked.. Someone could be pissed at me.. BUT ADMIT SQUARE ENIX ISN'T MAKING THE NOISE OF SUCCESS THEY USED TO BACK IN THE PS1-PS2 DAYS...

RaIn285
RaIn285

Let Atlus make all the JRPG you can rest Square :D

Axel450
Axel450

kane and lynch and lara croft- i can see y they got poor reviews but y is kingdom hearts, one of squares best series, not selling?

krelmmaster
krelmmaster

I lost all appreciation for Square Enix when they absolutely butchered a great story-line and potentially a great first sequel in the series with X-2. Unfortunately Square-Enix have not released anything since to help renew that appreciation. R.I.P Squaresoft.

japanesegoth
japanesegoth

weren't they supposed to be making some kind of 13 spinoff or something like that? whatever happened to it? they just need to get back to making better games. ff13 was just not that great.

Promised_Trini
Promised_Trini

@squallgunblade7 I would also like FFX re-make.True FF7 has had its run.The movie put everything together.

StArDr1fTeR
StArDr1fTeR

Kind of sad they gave up on the Final Fantasy VII remake. That would probably help them. Their sales may have dropped but they are still making plenty of money. Hopefully some really good games will come out next year. We have Final Fantasy XIII Vs. to wait for. :)

Jackc8
Jackc8

When the magnificent FFXIV revenue starts pouring in, I'm sure things will really turn around for them. Oh wait, that's got a 50/100 Metacritic score.

calvinsora
calvinsora

I'm still rooting for you, SE, just get to making FFXIII Vs. and FFXIII Agito ;)

squallgunblade7
squallgunblade7

if they to remake anything it needs to be final fantasy 8-10 since they already made a movie out of 7 i want to be able to enjoy my favorite game of all time ff8 with some new light shine on it

squallgunblade7
squallgunblade7

[This message was deleted at the request of a moderator or administrator]

Crush_Project
Crush_Project

another example of degrade is front mission which is a shadow compared to Armored Core or the old mech warrior games. These guys are on pure exploit the market status no question about it.

xxxAdvocatexxx
xxxAdvocatexxx

Here Square-Enix... Take my money. I still love you.

fightmusician
fightmusician

The fact that FF14 is complete trash can't really help the cause!

qubeley
qubeley

SE has lost it in a way that they just want to please the west and forgot what made them special. There was an interview in a mag that the person in charge of FF was saying that they look forward to make better games by making them looking better. That's a sad thing to say cos they are not talking about game play and innovation. Seriously FF XIII sucks big time. FF XIV is boring, FF 4 Heroes of Light is boring. DQ IX is still great because it was developed by Level 5. SE is now just a sad factory that churns out old stuff and new stuff with old names to make a buck

Gen007
Gen007

yeah SE right now is like a kid covered in raw meat thats flailing in shark infested waters. Seriously they just cant seem to get one thing right. Their problem is hubris. They got to the point where they felt untouchable and just completely gave up on making good games. Now they just plan on selling games based off the name alone. I really do hope they turn things around but at this rate who knows whats gonna happen. Its been years since ive enjoyed an SE game.

covenan
covenan

why SQUAREENIX now s*cks? simple..there's no target they need to trample.,remember the PS1 and PS2 era?, at those time, they compete with another Creative Powerhouse, the"old" SEGA(not that lil' division of Sammy now) and (now acquired) ENIX, SQUARE simply triggered..that's why they made Final Fantasy series pre-XII so Impressive and every title during those times was masterpiece, cuz they need to trample and beat rival Sega (Eternal Arcadia, Lunar), as well ENIX(Dragon Quest, Grandia).but there's no competition now on them from Japan.so they look at the west..but unfortunatelly...they loosing their root by doing that XD

Ladiesman17
Ladiesman17

Kingdom Hearts sucks that title made for lame, and Final Fantasy made for ladies. plus Final Fantasy-Online & Front Mission Evolved got mediocre review from GameSpot. most their IP(s) is JOKE!!! ;) the only things I care about them is Eidos games!! like Deus Ex, Thief, Tomb Raider, Hitman etc.

decoy1978
decoy1978

The last few months have been disappointing for SE. FFXIV was a bust, FME was a bust, KHBBS was a let down... For a company that had strong roots in the RPG genre, the latest batch were simply not that good. FFXIII sales weren't that impressive as well as DQ's for the money they spent developing... What SE needs to do is go back to basics! Graphics are not everything.. you can make a great game w/o mind blowing graphics.. you need is impressive gameplay with an excellent story!

soulless4now
soulless4now

@xinoeph: They already made a sequel to FFIV. It was called FFIV After Years or something like that. It was a wiiware title I believe that was released like 2 years ago.

Quinzark
Quinzark

all they need to do is make another KH game for either PS3 or X box and there set for a while.

DBZKING1234
DBZKING1234

@xinoeph I think there was one on the Wii as Wiiware or something like that. It was a downloadable game but I don't really know too much about it.

buickbeast
buickbeast

If Lost Odyssey was a Final Fantasy game, it would be considered one of the best in the series. Square has been on a serious decline since Sakaguchi left. I'll let FFXI slide, but nothing after that has deserved to be called an FF game. It is truly sad how terrible this once, King of WRPG's has become.