News Square-Enix Reports 5.7-Billion-Yen Loss in April-December
posted on 2013-02-06 23:30 EST
As major video game companies announced their finances for the April-December 2012 period, Square Enix Holdings was the only one to report a loss of 5.7 billion yen (about US$61 million). In its Tuesday announcement, the company cited less profit in main console games as well as arcade machines due to unfavorable market conditions. It reported an operating income loss of 4.8 billion yen ($52 million) and an ordinary income loss of 4.2 billion yen ($45 million). This is the first time the company has dropped into the red since it was launched in 2003.
In light of the deficit, Square Enix still expects net sales of 150 billion yen (about USD$1.6 billion), and a total net profit of 3.5 billion yen (USD$37.6 million) in March 2013. The company also commented that Dragon Quest X: Mezameshi Itsutsu no Shuzoku Online (Dragon Quest X: Rise of the Five Tribes Online), which started service in August 2012, is showing signs of "steady progress," but on top of the burdens of service management, the game has not become a huge hit as it was anticipated. Another stable division was mobile software for smart phones, as the company found profits in online social games such as Sengoku IXA and mobie Final Fantasy games, even if they are not the biggest earners on the market.