Square Enix to record extraordinary loss of 22.1 billion yen in “content abandonment losses” following revised development approach

Square Enix expects to recognize extraordinary losses of 22.1 billion yen in “content abandonment losses” for the fiscal year ended March 2024, the company announced.

The Board of Directors voted 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.” The losses are a result of this revised approach.

Get the full announcement below.

■ Notification of Recognition of Extraordinary Losses

Square Enix Holdings Co., Ltd. expects to recognize extraordinary losses pertaining to abandonment losses associated with its content production account on its books for the fiscal year ended March 2024, as detailed below.

1. Nature of the Extraordinary Losses

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.

2. Outlook

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.