In a notice to investors on Tuesday, Square Enix says that its next earnings report will see a significant loss in money due to canceled games at the studio.
According to the notice, Square Enix will report content abandonment losses of $140 million (Â¥22.1 billion) in it’s 2024 year-end earnings. This comes after a the company’s board of directors voted on March 27 to change its “approach to the development of high-definition (HD) games with the intention of being more selective and focused in the allocation of development resources.”
“The Company is carefully reviewing its consolidated forecasts for the fiscal year ended March 2024 to assess the potential for impact from the above or other factors,” the notice reads. “Should revisions to its forecasts prove necessary, the Company will promptly disclose the same.”
According to the company, sales of Final Fantasy 16 were lower than expected. It’s most recent release, Final Fantasy 7 Rebirth, has also reportedly underperformed, according to analyst Daniel Ahmad.
Square Enix is scheduled to report its fiscal year 2024 year-end earnings on May 13.
What do you think of Square Enix losing $140 million on canceled games? For more Insider Gaming, read about Deliver Us Mars studio KeokeN laying off its entire staff.