The economy has been hard as of late. Nerds and non-nerds have been affected. Even uber-nerds such as Square-Enix have been hit hard because of it. While initially expecting to make a profit for the financial year ending March 31st 2011, they are reporting a net loss.
Because of this, Square-Enix has cancelled a number of undisclosed games. According to Square-Enix, “Under a rapidly changing operating environment and more prudent estimates of future cash flows, the Company plans to write down goodwill (approximately 8.8 billion yen)”
They added, “Further, as a result of introducing a tightened selection standard regarding title lineup to strengthen the revenue base of the Company’s digital entertainment segment, project development cancellation and related losses (approximately 4.5 billion yen) are expected.”
Along with the economy, the earthquake and ensuing tsunami that struck in March of this year is also to blame. Aside from the obvious ramifications that a natural disaster can cause, Square also did their part to help conserve electricity by shutting down servers for Final Fantasy IX and XIV and waived any subscription fee for the month of April. (However, I’m fairly positive there was more complaining when the servers for FF XIV were turned back on, rather than turned off)
What may help Square-Enix are the big name games that carry their name and are planned to be released this year, such as Deus Ex: Human Revolution, Final Fantasy XIII-2, Tomb Raider, Hitman: Absolution and Thief 4. Square Enix hopes these games will help them bounce back into the positive while gamers just hope that Square-Enix starts putting their name on games that don’t stink.