Wada talked at the investor meeting, almost half of the loss came from Final Fantasy XIV and canceled games:
Speaking at an investor's briefing on the 13th (via Nikkei), Wada explained that of the 12 billion loss, about 4.5 billion came from such things as Final Fantasy XIV's reworking and the cancelation of multiple titles. Most of the 4.5 billion was related to domestic development, he said.
"Our game development has become weaker than expected," admitted Wada. "Revamping it will take one or two years."
Wada attributed the poor state of development to weak communication. Creative leads did not pass on his opinion to their subordinates. Additionally, there was trouble with division of labor amongst technical staff, who were protective and would fulfill only their own roles.
To reverse Square Enix's fiscal fortunes, Wada hopes to give a major push to social networking games and apps for high powered cell phones. However, he is unsure if developers who've worked on package games can work in these areas, so he's hoping to make use of external developers. However, he's not considering an acquisition.
http://www.andriasang.com/e/blog/2011/05/14/wada_on_losses/
