Square Enix has announced they will be recording “extraordinary losses” for the fiscal year ending in March 2024.

The losses amount to around 22.1 Billion Yen (140 million USD) and are described as “content abandonment losses” from cancelling several in-development projects. Square Enix explains that the board of directors voted to “revise the Group’s approach to the development of high-definition (HD) games with the intention of being more selective and focused in the allocation of development resources.”.

Notification of Recognition of Extraordinary Losses

Square Enix Holdings Co., Ltd. expects to recognize extraordinary losses pertaining to abandonment losses associated with its content production account on its books for the fiscal year ended March 2024, as detailed below.

1. Nature of the Extraordinary Losses

At the meeting convened on March 27, 2024, the Board of Directors of Square Enix Holdings Co., Ltd. (the “Company”) voted, in light of the myriad changes underway in the environment surrounding its Group, to revise the Group’s approach to the development of high-definition (HD) games with the intention of being more selective and focused in the allocation of development resources. As a result of a close examination of the Group’s development pipeline undertaken in keeping with this revised approach, the Company expects to recognize approximately ¥22.1 billion in content abandonment losses on its books for the fiscal year ended March 2024.

2. Outlook

The Company is carefully reviewing its consolidated forecasts for the fiscal year ended March 2024 to assess the potential for impact from the above or other factors. Should revisions to its forecasts prove necessary, the Company will promptly disclose the same.

This news comes after a number of high profile games from the company failed to hit their mark critically as well as commercially. Stay tuned for more updates as they come.

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