Square Enix announced today that it has booked an extraordinary loss for the three-month period ended June 30, 2013 as a response to the latest environmental changes in the game industry (Namely, the console gaming sector apparently not being profitable for them). The impact of this financial loss, however, will not have an intimidate effect on the company’s fiscal plans for the many months to come.
In response to the latest environmental changes in the game industry, the Company has implemented a change in its development policy, and conducted a comprehensive review on work-in-progress game titles for the three-month period ended June 30, 2013.As a result, the Company has decided to book a loss on evaluation of content (approximately ¥1.6 billion) as an extraordinary loss.
Booking of the extraordinary loss does not require the Company to revise the forecasts of its consolidated financial results for the six month period ending September 30, 2013, and the fiscal year ending March 31, 2014.
While at least half of Square Enix’s Group business segments were profitable for them (even if only in the slightest), that didn\’t stop the company from taking in the losses that they did. Square Enix’s net sales for the three-month period ending on June 30, 2013 totaled ¥24,083 million (a decrease of 3.3% from the last fiscal year), their operating income amounted to ¥689 million (operating loss of ¥1,163 million from the last fiscal year), and their ordinary income amounted to ¥1,498 million (ordinary loss of ¥2,049 million in comparison to the prior fiscal year).
Sqaure Enix says that they will be continuing to make determined efforts to strengthen the competitiveness and profitability of their business segments. Hopefully the company is able to regain footing by investing in the smartphone gaming industry.