http://www.andriasang.com/e/blog/2011/05/14/wada_on_losses/
http://www.nikkei.com/news/headline...1968BE3E1E2EBEB9CE3E1E2E7E0E2E3E3E2E2E2E2E2E2
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http://www.square-enix.com/eng/news/pdf/11q4release.pdf
http://www.square-enix.com/eng/news/pdf/11q4earnings.pdf
slides
http://www.square-enix.com/eng/news/pdf/11q4slides.pdf
http://www.nikkei.com/news/headline...1968BE3E1E2EBEB9CE3E1E2E7E0E2E3E3E2E2E2E2E2E2
Anoop Gantayat said:Speaking at an investor's briefing on the 13th (via Nikkei), Wada explained that of the 12 billion loss, about 4.5 billion came from such things as Final Fantasy XIV's reworking and the cancelation of multiple titles. Most of the 4.5 billion was related to domestic development, he said.
"Our game development has become weaker than expected," admitted Wada. "Revamping it will take one or two years."
Wada attributed the poor state of development to weak communication. Creative leads did not pass on his opinion to their subordinates. Additionally, there was trouble with division of labor amongst technical staff, who were protective and would fulfill only their own roles.
To reverse Square Enix's fiscal fortunes, Wada hopes to give a major push to social networking games and apps for high powered cell phones. However, he is unsure if developers who've worked on package games can work in these areas, so he's hoping to make use of external developers. However, he's not considering an acquisition.
This past year, internet-related products brought in profits of 1.5 billion yen for Square Enix. The goal is to multiply this during the current fiscal year, said Wada. Square Enix is also looking into possibly creating a billing platform.
One major point from the presentation materials PDF Square Enix released on Friday (see this story) was mention of a plan to double the company's major brands to around 10 or so. It looks like the PDF was not referring to this year. While development on these new brands is progressing, Wada believes it will take 3 to 5 years.
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http://www.square-enix.com/eng/news/pdf/11q4release.pdf
http://www.square-enix.com/eng/news/pdf/11q4earnings.pdf
slides
http://www.square-enix.com/eng/news/pdf/11q4slides.pdf
Yoichi Wada said:"Our Group experienced significantly lower sales and profit during the fiscal year mainly due to weak performance of console game titles released during the year as well as the impact of a continued delay in billing for a key online title, which was newly launched during the year.
"Further, under a rapidly changing operating environment and more prudent estimates of future cash flows, the Company wrote down goodwill (approximately ¥8.8 billion). Project development cancellation and related losses (approximately ¥4.5 billion) as well as losses caused by natural disaster (approximately ¥0.6 billion) were also factors in the recording of total extraordinary losses of ¥16.0 billion. In the fiscal year ending March 31, 2012, we are very focused on the Group's key strategic initiatives of globalization, becoming network centric, and strengthening our own-IPs as we work to generate a substantial earnings recovery from the fiscal year ending
March 31, 2013 and beyond."