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'Extraordinary losses' warning from Square Enix

Ben Parfitt
'Extraordinary losses' warning from Square Enix

Square Enix has drastically revised its predicted losses for the fiscal year ending March 31st.

Describing the change as 'extraordinary', the company has increased its forecasted loss from YEN 1bn to YEN 12bn (around £90m). Sales and income are expected to come in slighty below expectations, too.

The change was blamed on the cancellation of a number of unnamed digital projects.

"Under a rapidly changing operating environment and more prudent estimates of future cash flows, the company plans to write down goodwill (approximately YEN 8.8 billion)," a statement reads.

"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 YEN 4.5 billion) are expected.

"Additionally, damage and losses during closures at, and restoration of, amusement facilities resulting from the Tohoku Pacific Ocean Earthquakes and Tsunami caused an extraordinary “loss on disaster” (approximately YEN 0.6 billion)."

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Tags: square enix , losses , Digital , cancelled , extraordinary , forecast , projects , titles

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