After having posted the worst losses in its history and sacking its CEO, Square Enix has announced its new focus will be social games.
Its final balance sheet for the last fiscal year showed an operating loss of 6 billion yen – the first time since the merger with Enix that the company has posted an operating loss – and total losses stood at 13.7 billion yen, the worst result in its history.
Most of these losses stemmed from writing off all the games it has cancelled over the last year.
Square Enix maintains its problems had nothing to do with it – according to group manager Michihiro Sasaki’s statements at a recent press conference, the massive slump in its revenues was because of “intense environmental change,” and its concentration on console and arcade games slowed its progress in the field of social and online gaming, damaging the company’s performance, whilst North American video game sales were “stagnant.”
He emphasised that for the next financial year “the driver will be social games,” and that the company is expecting to return to profitability by focusing on social gaming, forecasting profits of 3.5-6 billion yen next year.
Markets have actually responded favourably to the news, although the company’s shares still trade at rock-bottom lows:
And I am just sitting here, masturbating…
Yes, it’s current slump is due to environmental changes, and not because it’s murdered it’s own genre with progressively worsening Final Fantasy titles. I mean hell, even with Ride to Hell: Retribution on the market Final Fantasy XIII is still probably the most poorly written game on the market now.
The social market is more appropriate for smaller companies. Square-Enix is too big with too many overheads, and they will physically be unable to make enough money on the social market to sustain themselves. Especially if they are going to abandon their loyal fan base to aim at a new market.
Square, stop with all this bullshit and give me my good RPG’s!
you are mistaking me for your wish father.
And I thought emulating Atari was a bad idea. From the greatest video game company to the worst in 10 years. Good job you arrogant f♥♥k ups.