Square Enix issues gloomy forecast

Japanese publisher and developer Square Enix has issued a stark warning about its expected performance for the current financial year, which closes at the end of March.

It now predicts net income of Y1,000m, a massive 89 per cent year-on-year drop. It expects net sales to fall 32 per cent to Y130,000m.

The numbers come on the back of a disappointing Q3 that saw sales slide 28 per cent to Y98,183m and income plummet 77 per cent to Y1,821m.

Net sales in the Digital Entertainment segment reach Y50,574m. Operating income hit Y11,161 million.

Throughout the period both Dragon Quest Monsters: Joker 2 and Kane & Lynch 2: Dog Days sold in excess of a million units, though overall console performance was poor. It was a different story on PC and smartphone, however – and these are segments on which Square is promising a fresh focus.

Responding to intensifying competition in the console game market, the company has implemented organisational changes in the third quarter while also working to better select and further strengthen our most competitive titles," president Yoichi Wada stated.

"In other platform areas including PCs and smartphones, we have created successful examples of new content such as Nicotto Town and Sengoku IXA. By pursuing these two independent markets, we are raising our ability to succeed in diverse business models."