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Square Enix still struggling to recoup its  Sleeping Dogs  losses
Square Enix still struggling to recoup its Sleeping Dogs losses
February 5, 2013 | By Mike Rose

Square Enix admitted today that it is "struggling" to recover from the huge losses that it posted earlier in the current fiscal year -- although the company forecasts a swing to profits before the fiscal year is up.

The publisher previously suffered heavy losses due to unexpectedly slow sales of games including Sleeping Dogs. Now the company says that "the increasingly difficult condition of the world-wide console game market" means that it is finding it hard to recover.

A number of the company's smartphone and browser games, such as Sengoku Ixa and Final Fantasy Brigade, are helping to balance out this console game decline, while MMORPG Dragon Quest X is showing steady progress, says Square Enix.

However, as the company moves into the final fiscal 2013 quarter, it's putting its faith in a number of high-profile console titles. Dragon Quest VII for Nintendo 3DS is due for release in Japan this week, while the Tomb Raider reboot is releasing in North America and Europe in March across multiple platforms.

The publisher also has Kingdom Hearts HD 1.5 Remix and Final Fantasy XI expansion Seekers of Adoulin releasing in March to help bump up its full fiscal figures.

For the nine months ending December 31, 2012, Square Enix's Digital Entertainment division (which mainly consists of its games business) posted revenues of 57.8 billion yen ($622.6 million), up 7.7 percent year-over-year, and operating losses of 392 million yen ($4.2 million), compared to operating income of 12.4 billion yen ($133.5 million) year-over-year.

Overall, the company recorded revenue of 102.8 billion yen ($1.1 billion), up 7.4 percent year-over-year, and losses of 5.7 billion yen ($61.9 million), compared to profits of 5.0 billion yen ($54.0 million) year-over-year.

And for the full fiscal year, Square Enix expects to make 150 billion yen ($1.6 billion) in revenue, up 17.3 percent year-over-year, and profits of 3.5 billion yen ($37.7 million), down 42.2 percent year-over-year.

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Maurício Gomes
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Want to make profit Square?

Release Versus! Yay!

evan c
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I think they'll just make another game starring Lightning.

Pablo Simbana
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or at least localize type-0, I don't care if they dont localize the audio, subtitles will do the job, yet they are releasing another lightning title :S

Adam Bishop
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I picked up Sleeping Dogs when Steam had it on sale for $25 and I thought it was a ton of fun. I know a bunch of other people who played it and they all enjoyed it too. Most of us didn't know what to expect going in, and we all had more fun with it than we expected to. It's too bad that the game didn't find broader success. I wonder if it's an example of a game that might have sold better if it was released at a lower price point, make it easier for people to give it a shot without having to invest $60 in it.

Erin OConnor
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Couldn't agree with you more Adam. What a great game Sleeping Dogs is.
I picked it up because a friend picked it up and recomended it.

(and for the record the reply/like is not functioning properly on this site.)

Aaron Hain
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I also thoroughly enjoyed it, more, in fact, than i enjoyed any of the GTA games. I thought the story was really compelling, the visuals were very polished, and the driving and hand-to-hand combat controlled really well.

I think part of the issue is that games like Sleeping Dogs require a huge investment from the players, and in more ways than just money. The older I get, the more I feel that you get more out of a game when you invest more of yourself in it.

Jason Weesner
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I thought Sleeping Dogs was a lot of fun! It felt like a streamlined version of GTA with some great melee combat and a terrific environment to explore. I've got to agree with Adam and wonder whether a cheaper initial price point wouldn't have helped sales considerably? Games with very little marketing (I didn't notice much) can't appear on shelves at $59.99 and hope to succeed.

Eric Adams
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Commented on this earlier, but I loved my time in Hong Kong with Sleeping Dogs. It's lamentable that a well rated, fun and campy game that is released in August (a low quality release month) can't sell at least 5% of the WW console market. Brutal market out there for games as console consumers are buying enough retail titles to properly support large budget games that aren't sequel. Many of the my industry friends are using their consoles to stream Netflix and HBOGO...not playing games.

Ben Sullivan
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This is very outdated info about Sleeping Dogs' performance. While there was a lot of speculation that Sleeping Dogs undersold and was a significant contributor to Square's losses, Square has since clarified that this is not the case [
-poorly-says-square-enix-president/]. In fact, it's been recently announced that Sleeping Dogs was Europe's #1-selling new IP last year [
selling-ip/] and it topped charts for several months after release [].