Not that a terrible earthquake and nuclear crisis didn't have an impact, but veteran gamers will point to other reasons for the massive downturn.

Back in February, Square Enix issued its projected net income of only 1 billion yen ($12.35 million), which was down 90% in a year-over-year comparison. But just before the publisher presents its full-year financial numbers, they've issued a depressing update : for the 12-month period ending March 31, 2011, the company now expects "extraordinary losses" of 12 billion yen ($148.33 million) on revenue of 125 billion yen ($1.53 billion). This is in stark comparison to the 9.5 billion yen ($117.4 million) in profit the company made on 192.25 billion yen ($2.37 billion) revenue the year prior.

Many of the losses are attributed to "a reassessment of unspecified previous acquisitions now worth about 8.8 billion yen ($108.78 million) less due to "a rapidly changing operating environment." Plus, the publisher expects to can a bunch of projects, although we don't have targeted titles just yet. It isn't good news for investors and long-time gamers will wistfully remember the days of Squaresoft, when it seemed most everything the company touched turned to gold. My, how times have changed.

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CrusaderForever
CrusaderForever
9 years ago

Hmmm, what could we do to get back in the green? Hmmm, wait, I have it, FFVII remake! DING DING DING DING! Idiots! This is what happens when you mess with a proven formula.

FatherSun
FatherSun
9 years ago

I wonder, considering the losses. Can they even afford to produce a proper remake? Can they afford not to?

Mog
Mog
9 years ago

I'm starting to think that there is a reason as to why they won't remake final fantasy 7. I'm not too sure what it is but there MUST be a reason. I doubt Square is THAT oblivious.

WorldEndsWithMe
WorldEndsWithMe
9 years ago

the reasin is it will be the card played when the company is in huge trouble, like now

Akuma_
Akuma_
9 years ago

Its true, FF7 has the potential to not only sell massive numbers to the millions of FF fans around the world, but i honestly believe that it is EXACTLY what the industry needs right now, a killer RPG.

Modern western gamers have never played a game like that before, and if they did it right, they could re-ignite the RPG passion.

FF7 is Squares chance to re-introduce the RPG formula, just like it was 10 years ago. There hasn't been ANY true RPG games since FFX, its no wonder that western gamers dont care about rpgs anymore, they havnt seen or played ANY good ones.

tayizfire
tayizfire
9 years ago

[email protected] …lol… am I the only one who played Demon Soul's here…we have played a great one…unless you mean turn-based rpg's …and i think V.C. was pretty decent…

Fane1024
Fane1024
9 years ago

@Akuma07

Not to start *another* debate about the definition of "RPG", but that's complete BS.

The truth is that there haven't EVER been ANY true RPG games [sic] on computers or consoles or handhelds.


Last edited by Fane1024 on 5/13/2011 3:39:31 AM

FatherSun
FatherSun
9 years ago

They didn't see the writings on the wall and they are now seeing their profits through the floor. They just may need to produce that FFVII remake if only to survive. But be careful Square, you mess that up and you are finished. It's a shame really, they are not a bad company. They just lost their mojo.


Last edited by FatherSun on 5/12/2011 3:58:49 PM

Oyashiro
Oyashiro
9 years ago

Quick SE! RE-re-re-re-release some more games!

Scarecrow
Scarecrow
9 years ago

GOOD! Money talks!

Now give us real jrpgs

Mog
Mog
9 years ago

A final fantasy 7 remake will most likely be their pheonix down.

Qwarktast1c
Qwarktast1c
9 years ago

if not a FF7 remake then at least give us an HD update to the PS2 FFs

WorldEndsWithMe
WorldEndsWithMe
9 years ago

whats a truck fighter?

Oyashiro
Oyashiro
9 years ago

We don't talk about Truck Fighting… Its rule 1 and 2.
.
.
.
.
Wait… Damnit!

Qwarktast1c
Qwarktast1c
9 years ago

Truckfighters is a swedish desert/fuzz rock band

Akuma_
Akuma_
9 years ago

what the hell is a desert rock band? =S

Qwarktast1c
Qwarktast1c
9 years ago

ever hear of Kyuss? they are the pioneers of desert rock
its pretty much easier to show than tell

http://youtu.be/KcY3UF6_IaM

BikerSaint
BikerSaint
9 years ago

Qwarktast1c

Just beKyuss you gave us that link, I gave you 1 thumbs up

Excelsior1
Excelsior1
9 years ago

maybe it's just the sony fan in me speaking, but i don't think square getting in bed with ms has helped them any. i know they would strongly disagree with me, though.

they still have a lot of talent, and i did enjoy ff13 despite its flaws. i'm actually looking forward to ff13-2 a lot.

WorldEndsWithMe
WorldEndsWithMe
9 years ago

It was a nice, quick payoff, but ultimately (as I pointed out at the start of this generation) it would not be profitable in the long run.

You couldn't find a better example of a company reaping the negative results from literally "selling out"

BikerSaint
BikerSaint
9 years ago

My thinking is that it's mostly due to Wada severely misjudged exactly how many commercial truck drivers he'd actually need to get all of M$ Armored trucks over to SE's "Bank of Immoral Deposits".


Last edited by BikerSaint on 5/12/2011 6:28:42 PM

Akuma_
Akuma_
9 years ago

You guys DO realise what this means.

FFvXIII has just been turned into a multiplatform title…..

tayizfire
tayizfire
9 years ago

let me be the first to say …FF 13 was terrible plus 1…it needs and x-potion just to become and 6 on the scale of gaming…boring ass game ..simply put…10-2 was better lmaooo

Fane1024
Fane1024
9 years ago

I guess the M$ money all counted toward the budget of S-E's *previous* fiscal year.

p.s. Once again, beaten to the draw (this time by Highlander).


Last edited by Fane1024 on 5/13/2011 3:47:14 AM

Underdog15
Underdog15
9 years ago

FFXIII was a terrible FF, but it was far from a terrible game, tayizfire. Additionally, although I hated FFX-2's dialogue and music, the battle system was perfect.

WorldEndsWithMe
WorldEndsWithMe
9 years ago

I join you all in saying "I told you so," but now I'm worried. I get the feeling SE will, instead of going back to what works and makes money, try even HARDER to make faster dumber games that destroy goodness and appeal to some non-existant "Western" gamer who wants to play RPGs polluted with incompatible influences.

Naztycuts
Naztycuts
9 years ago

haha entertaining post

TheHighlander
TheHighlander
9 years ago

Good god, what were they trying to swallow that was such a poison pill? Or was it just that in previous years their slush fund check from MS offset their losses?

Jawknee
Jawknee
9 years ago

And there are people out there who believe MS was an over net good for the gaming industry.

PorkChopGamer
PorkChopGamer
9 years ago

Hey, any time you get happy you got a platinum trophy, you just send that Thank You card right on to Redmond.

Fane1024
Fane1024
9 years ago

@High

Poison pill probably = Eidos.


Last edited by Fane1024 on 5/13/2011 3:49:53 AM

TheHighlander
TheHighlander
9 years ago

That's entirely possible, they bought Eidos for round about $140-$150 million, and the purchase was finalized in April 2009, which puts it into FY10. They just reported FY11 and if Eidos turned out to be much less valuable than the purchase price indicated, this is the first year that the losses could be written down on the balance sheet. I don't think that Eidos was as valuable as their ownership of Lara Croft would have indicated. Also, taking an extraordinary loss on an acquisition is useful in two ways, the first is it provides cover for a year with poor revenue, and the second is that it provides a lot of scope for tax breaks because the asset value of the acquisition has dramatically declined allowing the extraordinary loss to be written to the books.

A2K78
A2K78
9 years ago

Given the fact the japanese portion of the industry have been on a massive downturn and certain titles(The 3rd Birthday) bombed at retail it doesn't suprise me as to why SE is currently in this shape

Akuma_
Akuma_
9 years ago

But japanese deevelopers cant expect to succeed just because they are making their games more western.

The western market is already overcrowded with games as it is, at least 50% of the games that hit the market these days don't sell high numbers, they are simply saturating the market at a time when most people can't afford it.

Japanese developers should be making their games more unique, we need something different, im getting bored with all the games that come out these days, because they are all exactly the same. Havn't played ANYTHING of FF quality in years.

Naztycuts
Naztycuts
9 years ago

I wonder how much of it is natural disaster, and how much of it is due to them alienating their fan base. FF XIII was one of the most beautiful games I'd ever seen, but they failed to make me want to finish it. You can't just call it Final Fantasy because you own the rights to the name. How hard is it to cater to your fans and make millions? Instead they want to try to get some of the COD crowd.

Newsflash to SE: The hardcore CODheads will never care about your RPG's if they didn't before FF XIII. The once faithful would have continued to line your pockets, bad business move anyone?

main_event05
main_event05
9 years ago

Can't make games for the stockholders.

FxTales
FxTales
9 years ago

Wonder if Final Fantasy XIII Versus will go multiplat now.

Jawknee
Jawknee
9 years ago

As long as Nomura doesn't let Square take it to the chopping block like they did with XIII, I couldn't care less. I just want the damn game to come out at this point.

Akuma_
Akuma_
9 years ago

It will. This is pretty much an unofficial announcement in my eyes.

Claire C
Claire C
9 years ago

I hope this doesn't affect FF Versus XIII or XIII-2, or the PSP FF.

BikerSaint
BikerSaint
9 years ago

If this added info below is correct, then even more bad news for $E, and gamers….

According to Kotaku….

Square Enix has cancelled multiple in-development titles, according to the company's latest financial forecast.

These games were binned as the company is "introducing a tightened selection standard regarding title lineup to strengthen the revenue base of the Company's digital entertainment segment".

The name/franchise of the cancelled titles was not disclosed.

Jawknee
Jawknee
9 years ago

But, but, but, they're just trying to adapt to the environment and do their best to survive in a western market.

/

I giggle every time I hear this because of how patently ridiculous the assertion is and the fact that the people who spout this nonsense have an inability and/or simply refuse to acknowledge that this is the exact reason they are failing this generation.

WorldEndsWithMe
WorldEndsWithMe
9 years ago

it was a convenient excuse for people to use in discussing why it was okay to chop up FFXIII for 360.

PorkChopGamer
PorkChopGamer
9 years ago

Heeeeeeey, I said that one time…..
Well, at least you giggled instead of guffawed. Guffaws really sting….

marcusfrommo
marcusfrommo
9 years ago

Ahh, let me see, a triple a game is released on both consoles, ff13, and unimpressive games there after.

Oh well.

Codeez
Codeez
9 years ago

This is off topic, but has anyone seen the "make your own apology" article on ign? …..Ridiculous.

karneli lll
karneli lll
9 years ago

'No more exclusives from square' thats all i heard.

kokoro
kokoro
9 years ago

"If you want everything, you'll end up with nothing". Lulu to Tidus. Final Fantasy X

Akuma_
Akuma_
9 years ago

You know what is hilarious, that is the MOST RELEVANT quote I have ever seen, in regards to squares current predicament…..AND THEY ARE THE ONES WHO PUT IT IN THEIR OWN GAME!!

shadowscorpio
shadowscorpio
9 years ago

That comment alone should be mail and/or shown to everyone at Square-enix. Brilliant!