read from gematsu:
At the meeting convened on March 27, 2024, the Board of Directors of Square Enix Holdings Co., Ltd. (the “Company”) voted, in light of the myriad changes underway in the environment surrounding its Group, to revise the Group’s approach to the development of high-definition (HD) games with the intention of being more selective and focused in the allocation of development resources. As a result of a close examination of the Group’s development pipeline undertaken in keeping with this revised approach, the Company expects to recognize approximately ¥22.1 billion in content abandonment losses on its books for the fiscal year ended March 2024.
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. Should revisions to its forecasts prove necessary, the Company will promptly disclose the same.
These are losses recorded for canceling game(s) that were in-development as a result of Square Enix making the decision to be more selective with where they put their resources (money) going forward.
22.1 billion yen is about $140 million USD, or the total amount Square Enix has already spent on the game(s) they have decided to cancel. Since those games are now canceled, that $140 million is recorded as a loss since there is no longer any opportunity to get that money + more back (by releasing and selling the game).
At the meeting convened on March 27, 2024, the Board of Directors of Square Enix Holdings Co., Ltd. (the “Company”) voted, in light of the myriad changes underway in the environment surrounding its Group, to revise the Group’s approach to the development of high-definition (HD) games with the intention of being more selective and focused in the allocation of development resources. As a result of a close examination of the Group’s development pipeline undertaken in keeping with this revised approach, the Company expects to recognize approximately ¥22.1 billion in content abandonment losses on its books for the fiscal year ended March 2024.
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. Should revisions to its forecasts prove necessary, the Company will promptly disclose the same.
These are losses recorded for canceling game(s) that were in-development as a result of Square Enix making the decision to be more selective with where they put their resources (money) going forward.
22.1 billion yen is about $140 million USD, or the total amount Square Enix has already spent on the game(s) they have decided to cancel. Since those games are now canceled, that $140 million is recorded as a loss since there is no longer any opportunity to get that money + more back (by releasing and selling the game).
