Square Enix is reporting profits for fiscal 2010 to date are down 76% to a mere $22 million, a change it blames on “more discerning consumers.”
Sales are also down 27.5% to $120 million, with a 58% decrease in operating profit.
Announcing the disastrous figures, Square Enix offered this excuse:
“Consumers have become relentlessly discerning, and the gap between titles which sell and those which don’t is widening. We’ll recover by investing in quality products which will appeal to consumers.”
Needless to say, its stock price is now at the lowest ever in the company’s history.
With a succession of handheld and mobile games all it has scheduled for release, and the poor reception of such “new IP” as NieR and Mindjack, to say nothing of the disaster which is Final Fantasy XIV, it is hard to see any imminent improvement in the company’s financial position.
With the last decade a succession of increasingly dire failures, and that decade also strangely coinciding with the tenure of Yoichi Wada as CEO, it seems increasingly clear only his departure is likely to restore the company to growth.