Square Enix released its Q1 2011 financial data yesterday posting a $16 million USD loss. The company issued a revised earnings estimate for the remainder of the year. Much of the monetary difficulty can be laid at the feet of the recent and catastrophic Japanese earthquake and tsunami with between-the-lines assessment also pointing at a mishandled Final Fantasy XIV launch. The result? Tightened development schedules, revised earnings projections and the cancellation of some projects.
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). 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) are expected.
Additionally, damage and losses during closures at, and restoration of, amusement facilities resulting from the Tohoku Pacific Ocean Earthquakes and Tsunami caused an extraordinary “loss on disaster” (approximately ¥0.6 billion).
Read the full Square Enix financial report.
Edited to reflect losses in USD.