Square Enix's console business still on the ropes
Square Enix was able to reduce its latest quarterly losses thanks to steady browser and smartphone sales, but was forced to evaluate the game titles that it currently has in development for console.
Console game sales are still weak for the company, and were especially so during this latest quarter, due to the fact that Square Enix released no new major titles.
As a result, the publisher says that it has "conducted a comprehensive review on work-in-progress game titles," and has booked a loss of approximately 1.6 billion yen ($16.2 million) after evaluating this content. The report does not give details on which titles have been affected by this move.
Note that Square Enix says that it is not altering its full year fiscal forecast, as it believes that it can drive substantial earnings through business structure reform, in order to establish a new revenue base.
Meanwhile, Square Enix's browser games are performing well, with SENGOKU IXA and Kaku-San-Sei Million Arthur both proving valuable for the company. Its major MMORPG Dragon Quest X is also showing steady performance.
For the quarter ended June 30, 2013, Square Enix's Digital Entertainment sector posted revenues of 11.6 billion yen ($117.6 million), up 2.1 percent year-over-year, and operating income of 1.3 billion yen ($13.4 million), compared to operating losses of 111 million yen ($1.1 million) year-over-year.
Overall, the company recorded revenues of 24.1 billion yen ($244.3 million), down 3.3 percent year-over-year, and losses of 493 million yen ($5.0 million), improved compared to losses of 2.1 billion yen ($21.3 million) in the previous year.