Square Enix expects loss of $140 million from cancelled video game title(s)
Square Enix announced on April 30 that they are expecting an extraordinary loss of 22.1 billion yen (over $140 million based on recent conversion rates) in the fiscal year ending March 31, 2024. The losses are related to the revision of Square Enix’s development policy and the scrapping of ongoing projects* (source: Takashi Mochizuki).
*The report does not clarify whether this relates to one or multiple titles.
According to the announcement, Square Enix’s board of directors decided in a meeting held on March 27 to revise the company’s development policy for HD video game titles “due to diverse changes in the environment and in an attempt to allocate and concentrate development resources.” As a result, they expect to record losses of approximately 22.1 billion yen related to the cancellation of ongoing title(s). Square Enix are currently revisiting their consolidated financial forecasts for FY 2023 based on these and other factors and will publish a revision if necessary.
