Not a great time for Square Enix; the publisher has warned of a total ¥12 billion loss for its financial year.
Just last February the company had said it expected ¥1 billion in profit, so something obviously went wrong, very wrong.
In fact it may be several things; a statement issued by the publisher explains a few reasons for the drop. It reads: “Under a rapidly changing operating environment and more prudent estimates of future cash flows, the Company plans to write down goodwill (approximately ¥8.8 billion). Further, as a result of introducing a tightened selection standard regarding title lineup to strengthen the revenue base of the Company’s digital entertainment segment, project development cancellation and related losses (approximately ¥4.5 billion) are expected.”
The recent Japanese tsunami also accounts for ¥0.6 billion of the loss. Enix posted ¥9.5 billion in profit for fiscal 2010, but that’s all vanished this year. How will the Final Fantasy publisher hold up in 2012?