Square Enix details plans for the year

Square Enix revealed a number of details during a recent business strategy meeting, according to Dengeki Online and Famitsu.com. Square Enix said that it has maintained an income rate of 40 percent, while other companies have been around 15 to 20 percent, but the company also acknowledges that the Japanese market is declining compared with the overseas market. Finding success in the foreign market is essential for the company's future, so Square Enix plans to focus on its overseas sales, especially in Europe, where it sees high growth potential. For North America, Square Enix sees that sports games and shooters outsell RPGs, but it has no plans to change its lineup, since it believes it can exploit a new market. Square Enix does not plan to release any titles dedicated to the overseas market due to cost inefficiencies, but products will be localized quickly.

Square Enix feels that its merger will benefit most of its businesses, including online games, cellular games, and publications. In terms of development structure, the former console game development teams from Square will keep their divisionary structures intact in Square Enix, and they will continue to develop games in the same style as before.

On the console side of its business, Square Enix will coordinate its release schedules to publish major titles on a timely basis without long gaps or conflicting releases from the two sides of the company. Square Enix is scheduled to release Final Fantasy XII this year, but Kingdom Hearts 2 is still lacking final license approval by Disney. While the Dragon Quest series has not been a major hit outside of Japan, Square Enix has confidence that its next release will be a success overseas as well, due to its anime-style graphics. One of the things the series is known for are its character designs from popular Dragon Ball manga and anime artist Akira Toriyama. Dragon Quest VIII is not scheduled for release until next year.

On the online side of its business, Square Enix aims to strengthen its management skills and create more software. Square Enix is aiming for more profits from its online services, and it's currently estimating sales of 10 billion yen ($84 million) during the year, which will account for one-sixth of the company's total estimated annual income. Square Enix's online sector was in the red last year, with a 1 billion yen ($8 million)loss, but that is expected to become a 2.8 billion yen ($23 million) profit in this year.