The lights are on
Square Enix president and CEO Yoichi Wada has stepped down in the wake of a disappointing fiscal year forecast, lower-than expected sales of some of its big hits, and a changing industry environment. A major restructuring is now underway.
Wada's departure still has to be ratified via a shareholder's meeting in June and a subsequent board of director's meeting according to Joystiq, but with a forecast for the current fiscal year ending on March 31 of a 13 billion yen loss (approximately $138 million) – a turnaround from the originally expected 3.5 billion yen profit – the die is cast.
The company's revised forecast is being blamed on the lower-than-expected sales of Tomb Raider, Hitman: Absolution, and Sleeping Dogs in the west, and the subsequent company reorganization that is currently taking place is being put on the books this fiscal year, according to Gamasutra.
How "weak" were the sales of those games? By the end of March, Square Enix estimates that in North America and Europe, Tomb Raider will have sold 3.4 million units, Sleeping Dogs 1.75 million, and Hitman: Absolution 3.6 million. None of those figures includes downloadable sales. Tomb Raider, by the way, has been on shelves less than a month.
No word on exactly what Square Enix was expecting these games to sell.
[via Gamasutra and Joystiq]
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That's just gotta be a whole lot of lies.
Not that I think any of those games are bad... they are excellent... but what you guys are also forgetting is that Square bought out edios prematurely I think. It still was not quite all together on the Enix merger, and then they buy a large UK dev? Sounds like they should have quelled some of their internal development Japaneses side so the marketing sector could benefit.
I thought all those games sold well...huh. Oh well this sucks.
All 3 great games. Not sure why they aren't moving more. Mean while COD rehashes the same game every time and it sells millions.
That's really unfortunate, having played two of those games I've really been impressed with the quality that Square has been showing lately.
Wow what a wuss " the captian is supposed to go down with the ship" thats my opinion.
I'm with the general crowd here, how much were you planning on making? I mean really, 3.4 million isn't call of duty numbers, but that's really freaking good. Since when is making over $200 million dollars a bad thing. I know that's not net profit, but still. Not to mention they almost lost more than sleeping dogs even made. Like that's outrageous that their expectations were that high.
They were expecting way to much out of these titles and obviously spent too much developing these games if they consider those sales figures weak. I just hope these studios don't get closed because of this, they have all showed that they can do great work, especially Crystal Dynamics. Tomb Raider is a game of the year contender in my eyes.
This does seem a bit troubling. Those are three very good if not great games (Tomb Raider is definitely a great) and they're not selling. Meanwhile, EA is probably in the black and will continue to take a dump on its customers for years to come.
are you kidding me. Tomb raider made 3.4 mill in less than a week, and now they are saying it's not enough?! i'm mean how much money do they expect a game like tomb raider to make in less than a month?! Hmm... if only the economy were in better shape, this probably wouldn't be happening.
Those seem like strong sales numbers, especially since Hitman and Tomb Raider had been dormant franchises for five years or more, and Sleeping Dogs was a new IP.