Square Enix cuts sales forecasts

Square Enix has lowered sales forecasts for its six-month fiscal period ending September 30th, 2010.

The Final Fantasy and Lara Croft publisher now expects to receive net sales of YEN 68bn (527m), down from YEN 76bn (589m). It predicts a decrease in profit from YEN 2.4bn (18.5m) to YEN 1.7bn (13m).

Square Enix also expects an increase in operating income during its fiscal period from YEN 4bn (31m) to YEN 5.7bn (44m).

In a statement the firm attributed the rise in costs and drop in sales to a challenging operating environment.”

It added: Operating income outperformed the company’s forecasts due to highly profitable carryover sales of major titles released in March of the previous fiscal year, and strong performance from the publication segment.

Revised forecasts include a non-operating foreign exchange loss and extraordinary losses including a loss on sale of property and equipment.

There are no changes to the consolidated results forecasts for the fiscal year ending March 31, 2011.”