informa
1 MIN READ
News

'Oligopolistic' console business blamed for Square Enix losses

As Square Enix posts a swing to significant losses for the last fiscal year, the company has blamed the "increasingly competitive and oligopolistic" console game markets in North America and Europe.
As Square Enix posts a swing to significant losses for the last fiscal year, the company has blamed the "increasingly competitive and oligopolistic" console game markets in North America and Europe, saying that the space is too highly-influenced by a small number of companies. The Japanese publisher has been forced to implement major changes to its business following what it describes as "environmental changes in the game industry," as the industry shifts away from console games and into the mobile market. Square Enix says its consumer game releases for the last fiscal year greatly underperformed. Sleeping Dogs managed sales of 1.75 million worldwide, Tomb Raider sold 3.4 million copies, and Hitman: Absolution sold 3.6 million units. In comparison, its smartphone and browser games found success in both the Japanese and the Korean market. Social titles like Sengoku Ixa, Kaku-San-Sei Million Arthur and Final Fantasy Brigade are continously contributing profits, said the company. It wasn't just Square Enix's console games business that took a nose-dive, as its arcade game machines sector also saw a notable swing to operating losses from healthy profits year-over-year. As a result of the current restructuring efforts, Square Enix has recorded "extraordinary loss" in a bid to turn its business around, as reported previously. For the fiscal year ended March 31, 2013, Square Enix's digital entertainment sector posted revenue of 89.5 billion yen ($880.1 million), up 24.5 percent year-over-year, and operating income of 44 million yen ($433,000), down a notable 99.7 percent year-over-year. Overall, the company recorded revenue of 148.0 billion yen ($1.5 billion), up 15.7 percent year-over-year, and losses of 13.7 billion yen ($134.9 million), compared to profits of 6.1 billion yen ($59.6 million) year-over-year.

Latest Jobs

Xbox Game Studios

Redmond, Washington
10.5.22
Technical Lighting Artist

Innogames

Hamburg, Germany
10.5.22
Game Designer - Elvenar

Six Foot

Houston, TX
10.3.22
Six Foot Director, Player Relations

Hometopia Inc.

Remote
10.7.22
Lead Engineer
More Jobs   

CONNECT WITH US

Explore the
Subscribe to
Follow us

Game Developer Job Board

Game Developer Newsletter

@gamedevdotcom

Explore the

Game Developer Job Board

Browse open positions across the game industry or recruit new talent for your studio

Browse
Subscribe to

Game Developer Newsletter

Get daily Game Developer top stories every morning straight into your inbox

Subscribe
Follow us

@gamedevdotcom

Follow us @gamedevdotcom to stay up-to-date with the latest news & insider information about events & more