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|Subject: Square Enix “Struggling” With Console Market, Records Loss Wed Feb 06, 2013 9:29 am|| |
Square Enix has admitted that it is struggling to make money in the console market, after recording a loss last year.
The publisher lost 5.7 billion yen (£39.1 million / $61.7 million) for the three quarters ending December 31, 2012. That compares poorly to the previous year, where Square Enix posted a profit of 5 billion yen (£34.5 million / $54.4 million).
Despite this, sales rose 7.4 per cent year-over-year to 102.8 billion yen (£705 million / $1.1 billion), and the publisher expects to make a profit for the year ending March 31, 2013.
"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,” said the Sleeping Dogs and Hitman publisher.
This, says Square Enix, is “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."
In other areas of the videogame industry - like PC, smartphones and social network games - Square Enix is faring better, “generating an acceptable profit."
For the end of the financial year the company expects sales to increase 17.3 per cent year-over-year to 150 billion yen (£1 billion / $1.6 billion), but profit to decline 42.2 per cent to 3.5 billion yen (£24 million / $37.9 million).
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