Square Enix reported their Q4 earnings and posted a 13.7 billion yen loss. SE cited “strategic initiatives such as a change in its development policy, organizational reforms, and redesign of some business models” for the extraordinary losses. Additionally, sluggish performance of arcade machines led to an operating loss for the Amusement segment of the business.
The SE report states that the company will revamp their strategy regarding the mobile space by targeting more development for tablets and smartphones.
The business environment surrounding the Group is in the midst of major changes, where smart devices such as smartphones and tablet PCs are spreading rapidly, while the console game markets in North America and Europe are increasingly competitive and oligopolistic. In light of such environmental changes, the Group is focusing all efforts on a substantial earnings improvement through driving reforms of business structure in order to establish new revenue base.
Strategic resource allocation will also see changes due to the company’s shift in focus. Less will be spent on new engine and technology development, while more money will be spent on marketing.