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Square-Enix details restructuring plans, just how much they've lost

The following comments and details come from former Square Enix president Yoichi Wada ...

- Square-Enix bases projected game sales off of game quality and Metacritic scores
- forecasts are based on 80-90% of the total sales potential of each title
- believes the company's revenue model is outdated
- says the company’s selling capacity has been “far weaker than we ever imagined” in North America and Europe
- this is leading to an extraordinary loss
- in turn, now there's an “effort to sort out items not achieving expected revenue levels, through scrapping those items and terminating production”
- a loss of more than 2 billion yen originates from Japanese studios
- Square-Enix recently launched a new division in the U.S. to develop casual games for phones, but were forced to close it down
- expecting a 1 billion yen loss as a result of its closure
- total losses resulting from this “Loss on Disposal of Content” at Square Enix amount to 4 billion yen
- another loss of 3.5 billion yen is expected from “Loss on Evaluation of Content”
- Square-Enix will make downward revisions to their prospective yields for every game title and overhaul their business models
- a 2 billion yen loss in this regard will come from Japan
- a 1.5 billion yen loss will come from Europe and North America
- a company-wide loss of 2 billion yen is expected in relation to re-structuring
- total losses amount to 10 billion yen.

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Categories: Consoles, Portables
Tags: square-enix

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