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Square Enix Posts 77% Fall in Profits For First Nine Months

Square Enix posted a 77 percent fall in profits for the first nine months of the fiscal year, with president Yoichi Wada pointing to "weakness [and] intensifying competition in the console game market."
Final Fantasy publisher Square Enix has posted a 77 percent fall in profits for the first nine months of fiscal 2010 ended December 31, compared with the same period a year prior. Figures for the first nine months show profits of ¥1.8 billion ($22.3 million), down from the prior year's ¥7.8 billion ($95.5 million). Net sales for the period were ¥98.2 billion ($1.2 billion), down 28 percent. The Japanese publisher forecast ¥1 billion ($12.2 million) in profits for the full fiscal year, down 89 percent from ¥9.5 billion ($116.4 million) last year. Yoichi Wada, president and representative director at Square Enix, attributed the fall in earnings to "intensifying competition in the console game market." The firm also noted that "the company has implemented organizational changes in the third quarter while also working to better select and further strengthen our most competitive titles." He added, "In other platform areas including PCs and smartphones, we have created successful examples of new content such as Nicotto Town and Sengoku Ixa. By pursuing these two independent markets, we are raising our ability to succeed in diverse business models." The financial results also noted that while "the segment experienced weakness in sales of console games," both Dragon Quest Monsters: Joker 2 and Kane & Lynch 2: Dog Days sold over 1 million copies each. Remaining notable releases lined up for the fourth quarter include Tactics Ogre: Let Us Cling Together, Tobidasu Puzzle Bobble 3D, Dissidia 012 Final Fantasy, the Tomb Raider Trilogy Pack, Final Fantasy IV Complete Collection, The 3rd Birthday and Dragon Quest Monsters: Joker 2 Professional. The earnings forecast come just weeks after Square Enix was forced to delay Deus Ex: Human Revolution, originally slated for a fiscal fourth quarter release, opting to "spend additional time to further polish" the title. The company is now looking to release the game during the 2011 fiscal year. The company also recently revealed Final Fantasy XIII-2, due out for Xbox 360 and PlayStation 3 next winter.

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