Square Enix credits their Montreal studio with their profitability!

[Joelcool7]

Well we all know that Square has been talking about how its Japanese business is beginning to faulter and that they are looking for alternative means of generating a profit. A while ago Square stated they had hoped the aquisition of Eidos would save the company and help turn things around.

Well in their recent financial report Eidos Montreal's Deus Ex is credited with being one of the biggest reasons Square made a profit. While many of the worlds biggest publishers especially Japanese ones are posting losses Square actually turned a profit. According to their financial report this is largely due to "The Group's favorable results included the major title release of Deus Ex: Human Revolution which shipped over two million units" - Yoichi Wada President of Square Enix

In the rest of the report mobile games and social games are also creditted with helping the company turn a profit. Yoichi has a optamistic view of the future saying "As I stated at the start of the year, we are focusing all efforts on rebuilding the Group businesses during the current fiscal year toward generating a substantial earnings recovery from the fiscal year ending March 31, 2013 and beyond."

In total revenue was actually down this year by 16.2 percent but profits in the gaming sector were up 20 percent year-on-year to ¥7.8 billion ($99.9 million).

With such a huge emphasis being put on Eidos can we expect Square's western studios to produce more of the high quality software. Also  the next fiscal year is going to see the release of WiiU, considering Square has stated they are hard at work on next generation projects this announcement supports the idea that we can expect to see PS4, Nex-Box by March 2013 as well.

Do you think Square's aquisition of Eidos is capable of returning the company to substantial earnings within the next fiscal year? Also it is sort of weird that Square is putting such an emphasis on Deus Ex considering other Square properties have sold far more copies in the past. Why do you think Square is putting so much emphasis on Eidos?