Square Enix recently ended their fiscal year 2013 with disappointing results, and an “extraordinary loss.” Now Square Enix has announced new plans to alter their strategy towards game development. In a financial briefing session, senior executive managing director Yosuke Matsuda reiterated how much of a loss they posted with games like Tomb Raider, Sleeping Dogs, and Hitman: Absolution. These games were all great, but they just couldn’t live up to the high sales expectations set by Square.
“I believe that this situation is not a one‐time event for the fiscal year ended March 2013, but is a structural issue within the packaged product sales model. As a result, I believe it is difficult to guarantee an appropriate return on our investments within the revenue model of purely packaged software,” he said.
“It is important to consider how to change business models in light of rigidity fromthe perspective of pricing, and I believe that the transformation to online titles and the diversification of profit opportunities is the key. While we have stated this before, we intend to pursue this with further intensity going forward.”
Matsuda continued to say that they will be overhauling their strategy for game development, and I hope they can bounce back this year with more great game releases.