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

by rawmeatcowboy
08 April 2013
GN Version 4.0
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- believes the company's revenue model is outdated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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