Square pulls out of the movie business, sees losses
SquareSoft announces that the lower-than-expected revenue from Final Fantasy: The Spirits Within will force the company into a second straight year with operating losses.
SquareSoft has announced that Final Fantasy: The Spirits Within will be its last foray into the film medium and said that the less-than-stellar performance of the film will result in a net operating loss for the company's current fiscal year. At a press conference in Japan, company COO Yoichi Wada said that profits from the film, which were a little over $30 million, fell "well short" of the targeted $80-90 million range. After posting an operating loss in the previous fiscal year, SquareSoft had forecasted a 700 million yen (about $6 million) profit for the current year, but now the company plans to book a loss of approximately $13.9 billion yen (about $115 million)to accommodate for the poor performance of the film.
Final Fantasy: The Spirits Within was released in US theaters on July 11. It was released in Japan on September 15 and has thus far fared poorly in that territory also.