[Video Games Biz] Yoichi Wada resigns as Square Enix CEO

RC Cola · Mar 26, 2013

http://www.gamasutra.com/view/news/...n_following_terrible_year_for_the_company.php

As Square Enix revises its full fiscal year forecasts, now predicting a swing to losses from the previously estimated profits, the company's president Yoichi Wada has resigned.

The Japanese publisher admitted last month that it is "struggling" to recover from the huge losses that it posted earlier in the current fiscal year, due in part of slow sales of Sleeping Dogs.

Now, where Square Enix had previously forecast profits of 3.5 billion yen ($37.1 million) for the fiscal year ended March 31, it is now estimating "extraordinary loss" of 13.0 billion yen ($137.9 million), a change of 16.5 billion yen ($175.1 million).

This was due to the company's digital entertainment division seeing "substantially" slower results in major console games than it had predicted. Its arcade machine business was also sluggish.

As a result, Square Enix is now implementing major reform and restructuring within the company, while taking a good hard look at its business models. These restructuring efforts will cost the company around 10 billion yen ($106.1 million), hence the switch from profits to losses for this fiscal year.

This includes disposal of content, which the company says will cost it 4 billion yen ($42.4 million), and the evaluation of all other content (another 4 billion yen).

Yoichi Wada stepping down as president is just one part of this restructuring effort. Wada originally joined Square at the start of 2000, and quickly rose up the ranks to become president and CEO by the end of the year.

The company noted that Yosuke Matsuda, previously representative director, will now take up the president role at Square Enix. However, a general meeting of shareholders will be held in late June to determine exactly who will take up each role fully.
Click to expand...

About time.

I haven't really read into this story too much, but I like how SE is trying to blame Eidos for all their problems. "If this almost canceled game sold 10M+ like it was supposed to, we wouldn't be doing so bad!" Has nothing to do with the horrible output and management of their Japanese branch.

B · Mar 26, 2013

What was the last must have Square Enix game? I remember picking up most Square games from 1988-1999, and started slowing down considerable with the PS2, and I don't think I've picked up a single Square Enix game for the current generation.

RC Cola · Mar 26, 2013

I'd say Eidos has come closer to making a must have game (e.g., Deus Ex HR) than Square-Enix. Though to be fair, they've made some good handheld games.

DreamShook · Mar 26, 2013

so does this mean we are going to get a remake of Final Fantasy 7 and Kingdom Hearts 3?

RC Cola · Mar 26, 2013

Probably so. For iOS.

I have no idea. But hopefully they manage their resources better this time around.

Mr.Scarface · Mar 26, 2013

The new Tomb Raider is great!

Yonkers · Mar 26, 2013

They sell their IOS games for $15-20 bucks. Ridiculous when other RPGs sell for much, much less. I bought one and while I enjoyed it, it was no where worth that much.

rocketsfeeva · Mar 26, 2013

Will they finally release FF13: Versus now?

RC Cola · Mar 26, 2013

No, I doubt it.

They will release FFXV, starring Noctis and being developed by the KH team.

(I'm not sure if I'm joking)

Forums

[Video Games Biz] Yoichi Wada resigns as Square Enix CEO

RC Cola Contributing Member

B Contributing Member

RC Cola Contributing Member

DreamShook Member

RC Cola Contributing Member

Mr.Scarface Member

Yonkers Contributing Member

rocketsfeeva Member

RC Cola Contributing Member

Share This Page

About ClutchFans

Rockets Content

Support ClutchFans!