NEWS - Tuesday, March 26, 2013


Square-Enix Restructuring due to sales slump

Developer and publisher Square Enix has changed its positive predictions for the current financial year from a healthy profit to a crippling loss, and announced plans to bring in expensive reforms and restructuring. Sleeping DogsHitman Absolution, and Tomb Raider all failed to meet high sales expectations. The company had forecast a net profit of around $37 million for the fiscal year, which ends March 31, but has now revised that to be a whopping $138 million loss. Ouch.

In the announcement [pdf], it said actual sales "substantially fall below" its predictions, "primarily due to slow sales of major console game titles in North American and European markets."

In an accompanying presentation, Squeenix said that sales of Sleeping Dogs, which it picked up after Activision dropped it, Hitman Absolution, and the new Tomb Raider all fell short of expectations, "despite the high critical acclaim."

Excluding digital sales, the three games are currently predicted to sell 1.75 million, 3.6 million, and 3.4 million copies respectively by the end of March. Evidently, that’s just not enough. North American sales are singled out as particularly low, compared to expectations.

Square Enix resolved, "In view of the rapidly changing environment of the game businesses, the Company has decided to implement major reforms and restructuring in its development policy, organizational structure, some business models, and others."

This process is expected to cost ten billion yen, or around $105 million dollars, which accounts for a huge chunk of this year’s new projected loss.

Company president Yoichi Wada is to bow out, with his replacement yet undecided. How exactly reforms will affect games in development and future games remains to be seen.


Source: www.shacknews.com

Comments

Site Statistics

Registered Members: 44,321
Forum Posts: 725,653
Xbox One Titles: 1,081
Xbox 360 Titles: 1,085
Xbox 360 Kinect Titles: 95
Xbox 360 Arcade Titles: 585
Original Xbox Titles: 987
Staff Reviews: 1,643
Member Reviews: 10,339
News Articles: 14,074
Screenshots: 30,717
Xbox 360 Achievements: 45,112
Xbox 360 Faceplates: 2,016
Cheat Codes: 1,706

Latest News








See News Archives

Community Forum Activity

Xbox One Assassins Creed Origins
Post by oryanphine
1 Replies, 322 Views

Xbox One S Porsche 919 Hybrid Edition
Post by oryanphine
3 Replies, 385 Views

OG Xbox on Xbox One now live!
Post by Kamshaft
2 Replies, 619 Views

Xbox One S Renault F1
Post by oryanphine
2 Replies, 454 Views

Xbox One S Wolfenstein 2 The New Colossus
Post by oryanphine
1 Replies, 617 Views

Xbox One S Prey
Post by oryanphine
0 Replies, 420 Views

Xbox One S Cuphead
Post by oryanphine
2 Replies, 714 Views

Xbox One S Shadow of War a gagner
Post by oryanphine
0 Replies, 411 Views

I Buy Very Rare XBox 360 Faceplates
Post by Smill
8 Replies, 1010 Views

Xbox Wire desormais disponible en francais
Post by oryanphine
0 Replies, 774 Views

Manette Xbox 360 Gamestop Radioactive
Post by oryanphine
1 Replies, 1089 Views

Xbox One Moratl Kombat X sur Ebay
Post by oryanphine
0 Replies, 1048 Views

Console Xbox 360 et faceplate Xbox 360 in package blue
Post by oryanphine
0 Replies, 1007 Views

Seagate Fanfest External Drive Scorpio
Post by oryanphine
2 Replies, 1362 Views

Ultimate Game Face
Post by oryanphine
3 Replies, 1246 Views

© 2000-2017 XboxAddict.com - All rights reserved. All trademarks are properties of their respective owners.
Xbox is a registered trademark of Microsoft. XboxAddict.com is not affiliated with Microsoft.

Made in Canada
Site Design by Cameron Graphics