Square Enix Predicts 2005, 2006 Profit Increases

Following announcements that the company plans to release one game per month for the 2005 fiscal year, officials from Square Enix have also revealed details of the company’s financial forecasts for the next two years. According to Japanese reports, the company expects to see operating profits of ¥26.5 billion ($255m) for the current fiscal year, up 36.3 percent from 2004, likely (although not specifically referenced) due to banner sales of PlayStation 2 RPG Dragon Quest VIII, which has already, as previously mentioned today, sold more than 3 million copies in Japan. Sales are predicted to reach ¥73 billion ($701m), up 15.5 percent. The company also estimates that operating profits for the fiscal year 2006, which begins on April 1st 2005, will be over ¥30 billion ($288m). This is based on the expected success of Final Fantasy XII – despite the company’s chairman recently admitting that the game had been delayed and now had no firm release date. It's likely that these increased profits may provide the funds to increase Square Enix's market share in the West, particularly Europe, regarding which Square Enix chairman Yoichi Wada has been vocal on of late. However, although acquisitions of Western publishers and developers have been mooted as a possibility, no currently strong fit exists in terms of existing relationships.