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Square Enix President Resigns Following "Expected Extraordinary Loss"

Author:
Jonathan Lester
Category:
News
Tags:
Financials, Square Enix, Yoichi Wada

Square Enix President Resigns Following "Expected Extraordinary Loss"

Slow Western Sales To Blame

Squeenix top dog Yoichi Wada has resigned his post in response to the latest financial forecast, which heralds an "extraordinary loss" for the company.

The report, which you can read right here, is entitled "Announcement of Revisions to Consolidated Results Forecasts and Expected Extraordinary Loss."

Which, frankly, says it all.

Net sales projections have been slightly dinged from 150 to 145 billion Yen, but the forecast radically increases net loss from 3.5 billion to a monstrous ¥13 billion. This massive deficit has been laid at the feet of "slow sales of major console game titles in North American and European markets", as well as major restructuring and sluggish performance of their arcade division.

Square has also offloaded their free to play titles according to a new report from VentureBeat.

It's unclear which Western console releases are to blame, but Square has been desperate to practically give Hitman: Absolution and Sleeping Dogs away recently. It's likely that Final Fantasy XIII-2 has also come in well under projections, though Tomb Raider is proving to be a massive sales smash. The fact that we're at the end of a console generation, not to mention deep in recession, will also make even their biggest successes much smaller than the enormous blockbusters of half a decade ago.

As always, the spiralling costs involved with developing, marketing and distributing a AAA game will be eating into their bottom line, despite the resulting chart positions.

Square Enix president Yoichi Wada has fallen on his sword, resigning his position ahead of a reshuffle in June. Representative director Yosuke Matsuda is currently expected to assume the role.

With EA having recently shed its leadership in the face of several under-performing games, it's clear that the biggest triple-A publishers have to start truly innovating rather than squeezing gamers for pre-order pennies. We hope that this latest report will light a fire under Square Enix going forward.

Add a comment7 comments
Quietus  Mar. 26, 2013 at 13:21

I would also point out that while they have had other successes, such as Tomb Raider at the moment, the fact remains that a great number of people still think of them as the RPG company, the Final Fantasy people. I have no doubt that a market still exists for proper RPGs. Just look at successes such as Xenoblade and Ni No Kuni. If they actually returned to what they did best, there'd be a hoard of loyal fans from a generation ago who are still itching to lap it up. It always feels like these companies want to find a million and one excuses, instead of realising the obvious. Is it just not so obvious from the inside?

Breadster  Mar. 26, 2013 at 17:22

I would also point out that while they have had other successes, such as Tomb Raider at the moment, the fact remains that a great number of people still think of them as the RPG company, the Final Fantasy people. I have no doubt that a market still exists for proper RPGs. Just look at successes such as Xenoblade and Ni No Kuni. If they actually returned to what they did best, there'd be a hoard of loyal fans from a generation ago who are still itching to lap it up. It always feels like these companies want to find a million and one excuses, instead of realising the obvious. Is it just not so obvious from the inside?


They're still releasing Final Fantasy games, just not good ones.

DivideByZero  Mar. 26, 2013 at 17:33

I disagree, 13-2 was the best one for ages IMO.

Much better than 13, but that's not hard. Honestly my favorite one since FF7.

Will be very interested to see what they do with the Lightning Returns one.

Breadster  Mar. 26, 2013 at 17:44

I disagree, 13-2 was the best one for ages IMO.

Much better than 13, but that's not hard. Honestly my favorite one since FF7.

Will be very interested to see what they do with the Lightning Returns one.


This comment greatly disturbs me, but each to their own I guess.

Quietus  Mar. 26, 2013 at 17:54

They're still releasing Final Fantasy games, just not good ones.
Exactly. What I'm saying is that they should go back to what they do best, and get back to their roots instead of all this modernisation crud.

Breadster  Mar. 26, 2013 at 18:15

Perhaps this change in management will help in that regard. Doubt it though.

Last edited by Breadster, Mar. 26, 2013 at 18:16
Ilium  Mar. 27, 2013 at 00:46

I rate all of those games. I remember a time when selling 3 million was an achievement not a noose.

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