Square Enix Posts 13.7 Billion Yen Annual Loss

Monday, May 13th, 2013

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Square Enix Logo

Everybody knows Square Enix has had some trouble over the last year, although we didn’t know quite the extent of the damage. Thanks to the magic of financial reports, we now know exactly what it looks like. The damage? 13.7 billion Yen, or approximately 135 million US dollars. Ouch. It’s not all bad news however. Company wide sales are actually up 15 percent year-over-year, and game sales are up a whopping 24.5 percent. For those who believe internal forecasts, Square is expecting to be profitable next year, although I’m a bit scared, seeing their projections for a few games (mostly A Realm Reborn), and knowing they have slightly inflated expectations across their whole portfolio (see Tomb Raider predictions)

For what it’s worth, the new president of the company is promising to review all operations, which I have to think will be a good thing. They’re also looking to invest less in technology, and shift some of that towards advertising, which I suppose is a smart thing to do if you think that’s why you aren’t meeting your sales figures for critically acclaimed games. They’re also looking to focus more on regional releases, as well as upping their presence in mobile. Lastly, they’re looking to regionalize releases more (scary from our perspective), while also lowering costs in development and lead times for games (which should get a collective hallelujah from the chorus).

Sources: 1, 2

About Daniel Gulyas

Daniel is a third year business student from Texas who got his start in JRPGs with Final Fantasy 8 and has loved them ever since. His three biggest passions are video games, technology and baseball, with anime being a growing fourth. He occasionally Let's Plays on the side as a hobby.

  • I’m sure the restructuring of the FFXIV team had something to do with this and we shouldn’t be worried at all.

    Considering everything they’ve made in the last year has done pretty well.


  • they really need to make a game that yells “Game of the Year” soon

    • Brad Williams

      They did. It’s called “Tomb Raider.” And SE blamed it for part of their losses.

      They couldn’t possibly point the finger at the cash black hole that is FF14.

    • LightningFarron19

      They already did. They said “If another game like FF14 happens, then the company is finished” or did we forget that they already said that!

  • fruitspunch_samurai

    New Legacy of Kain game!!!!

  • Xx_Kares_xX

    Good.. now Burn Square-Enix! BURN TO THE GROUND!!! (Or.. just start actually making good RPGs again… whichever)

  • There’s something seriously wrong with game development when a multi-million seller is considered a financial failure.

    • AAA budgets are just too high for their own good. production values aren’t worth it if they keep developers from making money. you don’t need all that excess polish to make a good game.

  • Shulknameholderthing

    Now see, this wouldn’t have happened if you’d just make the games you promised centuries ago rather than pull the “I’ll do it later” card like I do with anniversary gifts.

  • Charlotte Buckingham

    “They’re also looking to focus more on regional releases, as well as upping their presence in mobile.”

    Less localisation, more mobile? This is why nobody likes you.

  • John Ellis

    I can see them going the way of Infograme. They were a publisher who brought lots of studios and they grew so big that they could not afford to pay all their employees no matter how good their games sold.

  • Matango

    Chapter XIII-2 of “The Self Destruction of Square Enix”. Companies come and go, Square’s time may be coming sooner.

  • They should try making the games that they know their customers want. Soon those customers are going to give up on them. I’ve got on and a half feet out the door already. Think back to the late 90’s before the Final Fantasy movie – those were the golden days when the money was pouring in. Every game was money – if not perfect – they were totally great.

  • While I understand their move to make cheap Social & Mobile Games in order to make money (Not much, but at least something), their main problem was that they kept cancelling games that people were hyped about and delaying again and again some others, most of their current games are actually very well made but they also did a lot of Outsourcing and went over Budget (hence their exorbitant sales prediction), so for now we will be seeing Social & Mobile games from them until they become a Profitable company again and start making some Real Console Games without generating losses by carefully watching over the money being spent and a realistic sales prediction.

  • -Majin-

    Increase advertisements but lowering production costs? Was that not the problem to begin with?

  • LightningFarron19

    See, this is what happens when you over project on games like Tomb Raider and Hitman Absolution!

    Anyway, it seems like Square realizes the problems and are trying to bite it in the bud before it gets far worse. Capcom could learn a thing or two from that

  • Vallen

    If they finally release versus, I bet a 3rd of those losses can be earned back

  • Aiddon

    they REALLY need to manage their stuff better. They can start by putting some actually TALENTED people in the design teams.

  • Also they’re making crap FF13

    All of this loss is due to the black hole moneysink known as FF14. They have been pouring nonsensical amounts of money in trying to revive a dead and failed MMO.


  • Square Enix can’t fix their problems with advertisement. They went out of their way to grind fans underfoot with the games they made and released. Not talking about published games, I am talking about developed by them games. Their reputation sucks. After that Final Fantasy ios game that was all about paying them money and nothing else, and the lackluster quality of their games…..not graphics wise as all their games are very pretty……but fun wise, and them keeping up with that ideal for years…..

    They have a lot of fan faith to regain, and to be honest, I used to be a hardcore of the hardcore Square Fan, and then they became Square Enix and quality plummeted. I bought a lot of games, each worse than the last while they had the new name, and finally I ran into the straw that broke the camels back, Final Fantasy XIII. That was the last game I bought from them at full price, and to this day haven’t bought FF XIII-2. I won’t be buying XIII-3 either. Their dlc practices, and their general way of giving their western fans the bird have turned me away from them and they are now a budget buy game maker for me.

    So advertisement will help them some, but the trust they lost over the last 5 years is far harder to replace.