President Yoichi Wada steps down as the company expects a 13 billion yen loss
Tomb Raider publisher Square Enix has announced that its well-known president and representative director will step down to make way for new blood as the company revises end of year expectations to reflect an “extraordinary loss” of 12 billion yen.
The company reports that its digital entertainment division missed sales targets as key console titles failed to find large audiences in the European and North American markets, and was further hampered by the “sluggish” performance of its arcade machine business.
Not all of the company's losses come from lower than expected sales, as Square Enix explained it was splashing out on organizational and structural changes.
“In view of the rapidly changing environment of the game businesses, the Company has decided to implement major reforms and restructuring in its development policy, organizational structure, some business models, and others,” Square Enix's statement explained.
“The Company expects to incur loss of approximately JPY10 billion from such restructuring efforts to be recognized as extraordinary loss about loss from restructuring in the settlement of the account for its fiscal year ending March 31, 2013”