Yikes, was this because of Tomb Raider?

Neh.. I think they canceled some unanouncend games

Didn't Tomb Raider sell over 2 million copies. Isn't that enough to be profitable?

If there is any company that needs a good restruction it's SquEnix. I can't say I've enjoyed any SquEnix game this generation like I used to, a sign of things (not even the western ones made by Eidos).

http://www.destructoid.com/tomb-raider-hitman-sleeping-dogs-all-failed-square-enix-249692.phtml

Sleeping Dogs has sold an estimated 1.75 million copies to day, followed by Tomb Raider at 3.4 million and Hitman at 3.6 million. Square Enix blames these "slows sales" in part for its "extraordinary" financial losses this year.

Incredible but true, but the losses where included in last year's fiscal, not this past quarter.

I agree with NikkoM, these losses probably are for unannounced games that were cancelled.

They are reconstructing, they've laid off like half of IO and various other employees. It's a loss of 20 million in a quarter where they released no games, this isn't really surprising. It's more telling when the games start releasing again.

It didn't meet expectations but it was profitable barely. The expectations are used to offset development costs of games ongoing development (which were subsequently cancelled, or still not released (FFXIV developed twice, Thief 5+ years, FFXV like 8 years, and others).

http://www.hd.square-enix.com/eng/news/pdf/20130527_01en.pdf

"As a result, as explained earlier with respect to the income Statement, the Provision for Allowance for Sales Returns and 'Advertising Expenses" increased even though develpment expenses were covered these titles did not sufficiently contribute to profits"

I remember the old Eidos Montreal Guy saying they were sort of hoping for a home run with one of their games. A-la Assasins Creed. And they just got solid, but less than expectation sales for all 3 (hitman, tomb raider, sleeping dogs). I'm not sure what they were thinking because Hitman is already the 2nd highest selling in the franchise I believe. And Tomb Raider's sold the most already out of all the games in like 10 years. I understand thinking Sleeping Dogs might sell more.

I don't think you guys understand what an extraordinary loss is. The word extraordinary is used, in this case, as an accounting term for a loss that is a one time thing. The loss was caused because they did an evaluation of content. It's not called extraordinary because it's a huge loss. lol

That's baffled me honestly. Is the industry that much of a mess that games that sell over 3 million copies are not profitable? How did they spend so much money?

Thanks for clarifying, I was unaware of that

I don't know. ¿Marketing?

Hell, I don't even know anymore when they use loss because they have really lost money or because they expected to win 100, have only won 90 and therefore have "lost" 10.

We live in a mad, mad world.

@20happyballs: I was aware of that, but thanks. But still, something has caused them to book that unexpected loss, and that something may be the cancellation of games.