Canceled Games Cause Huge Loss for Square Enix
Square Enix has reported massive losses for the last fiscal year, with a large part attributed to canceled games. The total loss estimates come in at a 12 billion yen net loss. Development cancellations account for a 4.5 billion yen loss.
Canceled projects include Gun Loco, an Xbox 360 shooter which was canceled in March. The game received a tepid response from the press, resulting in Square pulling the plug. Also canceled was Project Dropship, a game intended for PSN and XBLA.
Along with cancellation losses, Square Enix also reported a 0.6 billion yen loss for “loss on disaster” caused by the tsunami.
Despite the losses, the coming fiscal year offers the potential to gain some ground with a strong line-up. With new games in the Deus Ex, Hitman, Tomb Raider, Final Fantasy, and Dragon Quest series on the way, this may be little more than a temporary setback for the company.
From a consumer standpoint, it's commendable of Square Enix to cancel failing projects. Not every game release can be amazing, but with more and more titles arriving every year, it's good to see a publisher willing to trim the fat.