Square Enix cancels or scales several projects and announces losses in the hundreds of millions

When Square Enix reports its financial results for the fiscal year ending March 2024, You will have to add 22.1 billion yen to the loss column. (more than 132 million euros at the exchange rate) for what they call “losses due to content refusal”.

The Japanese company announced in a statement addressed to shareholders that they reconsidered their “HD” projects (PC and home console games; MMORPGs such as Final Fantasy XIV) in development, which means cancel or resize an indefinite number of these titles.

The company’s statement clarifies that on March 27, the board of directors met to vote, “in connection with many changes occurring in the environment that surrounds the group”, a review of high-definition games in development, “with the aim more selective and focused on resource allocation developing.”

“As a result of the careful review of the group’s development portfolio conducted in accordance with this revised approach, the company expects to recognize approximately Losses of 22.1 billion yen due to content abandonment for the financial year ending March 2024,” they added in the release.

The company says it reviews its financial year earnings statements to “assess the possible influence of these or other factors” in the said report; In the event that Square Enix’s financial projections change as a result of these losses, “the Company will provide an update without delay,” the statement concluded.

In January, Square warned it would make fewer games

Takashi Kiryu, president of Square Enix, said during a question and answer session addressed to shareholders January: “We want concentrate our resources developing carefully selected new games that we will design with a high level of quality“The leader acknowledged that this change would mean reduction in quantity video games produced by the company.