{"id":30808,"date":"2024-05-14T12:58:42","date_gmt":"2024-05-14T03:58:42","guid":{"rendered":"https:\/\/automaton-media.com\/en\/?p=30808"},"modified":"2024-12-05T18:39:04","modified_gmt":"2024-12-05T09:39:04","slug":"square-enixs-stocks-plummet-following-announcement-of-70-profit-drop","status":"publish","type":"post","link":"https:\/\/automaton-media.com\/en\/news\/square-enixs-stocks-plummet-following-announcement-of-70-profit-drop\/","title":{"rendered":"Square Enix\u2019s stocks plummet following announcement of 70% profit drop\u00a0"},"content":{"rendered":"\n

As the market opened in Japan on May 14 at 9:00 AM JST, Square Enix\u2019s stock value decreased rapidly, reaching limit down within 30 minutes<\/a>. As of this writing, the company\u2019s stocks have fallen by over 15%. <\/p>\n\n\n\n

This comes in response to Square Enix\u2019s latest financial report<\/a>, according to which the company saw net profit decline by 70% to 14.9 billion yen (about $95.4 million) in the past fiscal year (April 2023 \u2013 March 2024). While Square Enix\u2019s net sales rose by 4% during this period, operating profit fell by 27%. This drop was mainly caused\u00a0by the company\u2019s digital entertainment (i.e. video game) sector, where profit sank by 38%. The report highlighted high development and advertising costs, as well as underperformance of major releases as contributing factors to these figures.\u00a0According to Bloomberg<\/a>, Final Fantasy 16, Final Fantasy 7 Rebirth and Foamstars fell short of Square Enix’s expectations.<\/p>\n\n\n\n

In addition, Square Enix booked 38.8 billion yen (about $248 million) in extraordinary losses related to revisions to its game development pipeline, i.e. the cancellations of ongoing projects. Expected losses had been communicated <\/a>in April, which was followed by a steady surge in Square Enix\u2019s stock price<\/a> as shareholders remained expectant. However, share prices suddenly dropped following yesterday\u2019s announcement of the company\u2019s results for the financial year. To tackle ongoing challenges, Square Enix has announced a revision of its policy<\/a>, which includes shifting to a multiplatform strategy and focusing on the quality of titles over quantity. <\/p>\n","protected":false},"excerpt":{"rendered":"

Following the announcement of their new mid-term plan and a year-over-year decrease in profit by 70%, Square Enix’s stocks have plummeted.<\/p>\n","protected":false},"author":55,"featured_media":30811,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_gspb_post_css":"","footnotes":""},"categories":[3],"tags":[261,17],"class_list":["post-30808","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-financial-news","tag-japan-related-news"],"blocksy_meta":[],"yoast_head":"\nSquare Enix\u2019s stocks plummet following announcement of 70% profit drop\u00a0 - AUTOMATON WEST<\/title>\n<meta name=\"description\" content=\"Following the announcement of their new mid-term plan and a year-over-year decrease in profit by 70%, Square Enix's stocks have plummeted.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/automaton-media.com\/en\/news\/square-enixs-stocks-plummet-following-announcement-of-70-profit-drop\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Square Enix\u2019s stocks plummet following announcement of 70% profit drop\u00a0 - 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