Square Enix anticipates game sales will fall by 5.23m to 12m this year.
In its latest financial report, the publisher revealed it had sold 17.23 million games in 2014, but expects that to drop by around 30 per cent during the next fiscal year.
North American sales will be hit hardest, sliding from 8.2m in 2014 to 3.8m in 2015. European sales however are expected to rise from 4.08m to 4.8m.
During the next year Square Enix expects to release new “major” titles for smartphones and tablets, and expand its operations in Asia, with the release of Final Fantasy XIV: A Realm Reborn in China during the summer.
For the following year, the publisher plans to launch large-scale online games developed by Western developers.
For the year ending March 31st 2014, Square Enix reported net sales of £899m, up 4.8 per cent from the year prior.
Net income meanwhile rose to £38m, up from a loss of £80m in the previous fiscal year.
Forecasted net sales for the year ending March 31st are expected to reach £840m for its entire business. Net income is expected to be anywhere between £20m and £38m.