Square Enix president resigning amid “extraordinary loss”

Square Enix president Yoichi Wada is to resign as the Japanese firm makes sweeping changes to its business structure that will hit its bottom line hard in the current business year.

Wada joined Square in April 2000, three years prior to its merger with Enix, and quickly rose to the top of the company, becoming CEO in December 2001. Following the merger he was appointed Square Enix president.

The company said today that it expects to confirm current representative director Yosuke Matsuda as its new president in June 2013 following a general meeting of shareholders. A Square Enix statement read: "In view of the rapidly changing environment of the game businesses, the company has decided to implement major reforms and restructuring in its development policy, organizational structure, some business models, and others.”

The Final Fantasy maker today dramatically reduced its earnings outlook for the current fiscal year ending March 31, 2013, citing "slow sales of major console game titles in North American and European markets", the "sluggish performance” of its arcade machine business, and an "extraordinary loss" of around ten billion yen (£70m / $106m) expected to be suffered as a result of its newly announced restructuring efforts.

For the business year, Square Enix now expects to post a net loss of 13 billion yen (£91m / $138m), compared to October 2012’s guidance of a 3.5 billion yen (£24m / $37m) profit, and a six billion yen (£42m / $64m) profit reported the previous business year. Additionally, it cut its annual revenue forecast from 150 billion yen to 145 billion yen (£1b / $1.5b).

Last week, it was also confirmed that Electronic Arts CEO John Riccitiello will leave his position on March 30 after the FIFA publisher’s financial performance failed to meet yearly expectations.

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  • Datadog - March 26, 2013 1:56 p.m.

    Fans: "We want a FFVII Remake! And Kingdom Hearts 3! And that's Versus game that looks really sweet!" Square: "Too expensive. But here's two critically-panned movies, a couple MMORPGs nobody plays, and three FFXIII games that only appeal to a tween demographic that can't make sense of its unintuitive battle system. Also, here's a dozen Kingdom Hearts sequels that can only be played on handheld consoles practically nobody owns. You asked for this, right?"
  • TheFabricOfTime - March 26, 2013 4:30 p.m.

    ^ This guy
  • CUFCfan616 - March 26, 2013 5:12 p.m.

    This pretty much sums it up. In this industry if you don't listen to what your gamers want, they will, and have, vote with their feet.
  • mafyooz - March 26, 2013 10:34 a.m.

    Here's an idea for whoever takes over, make a Final Fantasy game that doesn't suck giant donkey balls like every one since FFX has, with interesting characters and a deep combat system that doesn't involve just holding down X for 10 minutes, then people (myself included) won't be able to give you their money fast enough.
  • SalvadorZombie - March 26, 2013 11:46 a.m.

    God, just shut up. "Every one since FFX?" Take the blinders off, fanboy. And actually speak in actual words instead of grossly exaggerated hyperbole.
  • slimjim441 - March 26, 2013 11:57 a.m.

    FFX? You must mean FFVI.
  • winner2 - March 26, 2013 10:06 a.m.

    "In view of the rapidly changing environment of the game businesses, the company has decided to implement major reforms and restructuring in its development policy, organizational structure, some business models, and others.” I wish companies could just say it plainly. "we fucked up, new game plan"
  • Talvari - March 26, 2013 8:19 a.m.

    Shame, though i doubt anyone can say they didn't see something like this coming. Maybe with these new changes for both squeenix and EA their focuses and priorities will not putting out a billion iOS ports and that 1 terrible free to play one...dear god T.T Oh well at least the XIII series is being completed, pretty hyped for Lightning Returns from what i've seen. Doubt it'll sell well and it'd probably sell better under a different name..but the previous 2 sold well enough so maybe this will too : | *Wishful thinking* All they need to do really is reveal some god damn versus news so the obsessed fans will quell their rage for a bit and actually find out if it's potentially going to be good or not since we have close to nothing on it so far >< Releasing FFXIV might help a bit too since like..big brand name and all and it looks awesome >.>. Hopefully everything goes better for them with this new guy.
  • BladedFalcon - March 26, 2013 7:50 a.m.

    Over the past 5 years, every single move Square did has done nothing but tarnish their biggest name and franchise (Final Fantasy) by releasing one of the least popular numbered FFs ever, and THEN creating not pone, but TWO sequels for it. Then a broken MMO with the name slapped on to it, and instead of burrying that and forget it happened, they're BRINGING IT BACK. And the one FF game everyone's actually interest on? Delayed indefinitely. GEE! I WONDER WHY YOU IDIOTS HAVE BEEN HAVING EXTRAORDINARY LOSSES

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