Square Enix expects "extraordinary loss" this fiscal year, CEO steps down
Square Enix have announced the resignation of their CEO, Yoichi Wada, following an earnings forecast that predicts the company will experience "extraordinary loss" this financial year. According to their consolidated results report, the company had expected to make profits of 3.5 billion yen (approx. £24.5 million) before the end of the financial year, this March 31st. That didn't happen. Instead, Square Enix is now expected to report a loss of 13 billion yen (approx. £91 million).
According to the report, "The Company forecasts that actual business results from its Digital Entertainment Segment substantially fall below its plan primarily due to slow sales of major console game titles in North American and European markets." Detailed sales breakdowns aren't available, but while some of the low earnings will be from the Japanese console-only side of the business, no doubt their Western studios, recently responsible for Hitman: Absolution, Sleeping Dogs and Tomb Raider, have also underperformed.
In addition to Wada's resignation, to be replaced by former company president Yosuke Matsuda, Square Enix are also planning a major restructure in "development policy, organizational structure, some business models, and others." What the means in real terms - especially for upcoming projects like Eidos Montreal's Thief - remains to be seen.