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Square Enix president bemoans weak Final Fantasy sales and says his restructure is existential: ‘Our winning formula is no longer effective’

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The relatively new Square Enix president Takashi Kiryu has been making some big decisions in reviewing the company’s development process “from scratch“. The reasoning behind such moves is now becoming clearer thanks to Square Enix’s financial results, with the company warning investors earlier this month they could expect to see heavy losses, alongside which it announced the cancellation of various projects with a sunk development cost of around $140 million, and layoffs across Europe and the US.

Square Enix says it expects operating income of ¥40 billion in this financial year, against an expectation of ¥57 billion. Its sales and dividend outlook were also down. Since the announcement of these results and the ongoing restructuring, Square Enix’s shares have suffered badly, with Bloomberg reporting that the fall of 16% is “their biggest decline in 13 years” (and bear in mind, the Japanese stock market has a daily limit on how far a stock can fall).

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