Saturday, October 31

Square-Enix lowers profits forecast by 65% following layoffs

Square-Enix is the company behind the biggest RPG in all of gaming, the Final Fantasy franchise. It's also been a while since it released a new title in the long running series. Also, earlier this year, the publisher/developer acquired studio behind the Tomb Raider games, Eidos Interactive for $121 million. In light of the aforementioned, it's not amazing that they're lowering profit forecasts.

The company issued a revision to its 2010 fiscal year forecasts, and have lowered expectations for first half profits by 65% to 2.6 billion yen ($28.4 million).

According to Square-Enix, a number of "special factors" contributed to forecast revisions, including an unfavorable exchange rate and the cost of premium severance pay packages for laid off staff.

What is not mentioned in the revised forecast, is the fact that the publishing giant is expecting profits in the second half of the year to skyrocket as Final Fantasy XIII is released in Japan on December 17th, and world wide next spring.

Get the full vibe here.

10/31/09 Ernice Gilbert

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