Square Enix in a press release has reported staggering $33 million losses in its latest financial briefing. Which suggest that things are not exactly smooth at over the Square Enix company these days. The losses have since been attributed to a shift in strategy.
The loses that amount to $33 Million comes from the subsidiary of Square Enix; Luminous Productons, led by Final Fantasy XV Director Hajime Tabata. With this press release, we also learned that Hajime Tabata has left the Square Enix Studio. Whether Tabata leaving the studio has anything to do with the studio’s losses is unknown.
Luminous Productions was established back in march of this year with the purpose of developing new AAA titles and innovating game content to a global audience.
Here is a full press release by Square Enix which is the financial results for the six month period that ended September 30, 2018:
Square Enix Holdings Co. Ltd. (the “Company”) announces today that it has booked the following extraordinary loss in the financial results for the six-month period ended September 30, 2018.
1. The cause and nature of the extraordinary loss
Having conducted an in-depth review of the business strategy for Luminous Productions Co., Ltd., a wholly-owned subsidiary (the “Subsidiary”), the Company had decided to focus the Subsidiary’s development efforts on large-scale, high-quality AAA game titles, which best leverages the Subsidiary’s strengths. This decision has resulted in the booking of an extraordinary loss amounting to 3,733 million yen, including the disposition of the portion of the content production account related to the game titles under development at the Subsidiary and impairment losses on intangible assets, in the Company’s financial results for the six-month period ended September 30, 2018.
2. Impact on financial results
The aforementioned extraordinary loss has been fully reflected in the financial results announced today as the “Consolidated Financial Results for the Six-Month Period Ended September 30, 2018 (Japan GAAP).”
It is worth mentioning that press release notice from Square Enix is just a art f its financial results and where a substantial amount of money is being put into. It is currently unknown what games Luminous Productions has been working on since its establishment, but when the studio was first announced in late March, Square Enix noted that more information regarding its new projects will be given out later this year. However, we are still being kept in the dark about what they have been putting their money into when we consider the studio’s development.
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