Square Enix Laments "Increasingly Difficult" Console Market
Posted by Damien McFerran
5.7 billion yen loss rocks Dragon Quest publisher
Japanese publisher Square Enix has recorded a 5.7 billion yen loss for the nine months ending 31st December 2012. This comes despite the news that sales have risen to 102.7 billion yen.
The firm has placed the blame on the tricky nature of the console market, stating that poor game sales were to responsible for the loss:
During the nine-month period ended December 31, 2012, the Company has not recovered the operating loss posted in the six-month period ended September 30, 2012, primarily due to the increasingly difficult condition of the world-wide console game market, under which the Group is struggling to achieve a fair expected return on its investment.
However, more positive noises were made regarding mobile phone releases and browser-based experiences. Sengoku IXA and Final Fantasy Brigade are both "generating an acceptable profit" according to Square Enix, and there are now over one million registered users of social game Final Fantasy Artniks.
Square Enix therefore has reason to believe that it will soon return to profit:
The Company views the expansion of content and services that conform to emerging customer needs led by the fundamental change in the business environments, and the launch of full-scale commercial services for major MMO titles will establish its profit base, and is focusing all efforts on an earnings recovery from now on.
Hopefully Dragon Quest 7 on the 3DS can contribute to this recovery as well.