Square Enix posts fiscal net loss, projects revenue for next fiscal year through smartphones and tablets

Square Enix has posted their fiscal report ending on March 31, 2013. The company has posted a net loss of ¥1.37 billion or $137 million. Back in March Square Enix announced that it was implementing major restructuring after failing to meet expected profit margins.

Square Enix has noted that poor sales of console titles in NA and EU, that include Sleeping Dogs, Hitman: Absolution and Tomb Raider, didn't each it's expected sales. The company is going to target smartphones and tablets, stating that Final Fantasy Airborne Brigade and Kaku-San-Sei Million Arthur are "continuously contributing to the profit of this segment". Dragon Quest X has also been showing "steady performance" according to Square Enix. 

Square Enix has stated that "The business environment surrounding the Group is in the midst of major changes, where smart devices such as smartphones and tablet PCs are spreading rapidly, while the console game markets in North America and Europe are increasingly competitive and oligopolistic. In light of such environmental changes, the Group is focusing all efforts on a substantial earnings improvement through driving reforms of business structure in order to establish new revenue base." and "Given the environmental changes described above, it is expected that the consolidated forecasts for financial results will fluctuate ever-larger. The Group, therefore, has decided to make consolidated forecasts in a range of forecasted figures in lieu of specific figures, starting from the fiscal year ending March 31, 2014"

The company believes that implement such changes will increase profits for the upcoming fiscal year, project a net income of ¥3.5 billion-¥6billion.

Source: Square Enix (1)(2)(3)

Adam Siddiqui, NoobFeed
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