Square Enix Predicts Drop in Profits

Square Enix Co. today announced a 68 percent rise in annual operating profit due much in part to strong sales of Final Fantasy XII for the PlayStation 2. All the same, the company announced predictions of a 19 percent drop in annual profit through March 31, 2008, causing shares to descend to 11.2 percent ending at 2,885 yen on the Nikkei 225.

The company is attributing the potential drop in profits due in part to the fact that the majority of upcoming software is planned for release on portable machines, which are generally known to carry a much lighter price tag than their home console counterparts.

For the year ended March 31, Square Enix saw an operating profit of 25.92 billion yen, while sales rose 31.3 percent ending at 163.47 billion yen. The company