SE cites development cancellations as a reason -- is Final Fantasy XIV at risk?
How might SE’s financial hardships affect the future of Final Fantasy XIV?
Square Enix is cancelling the development of projects in its digital entertainment segment -- does this mean Final Fantasy XIV is on the chopping block?
In a press release issued today, Square Enix revealed its latest financial figures, predicting a loss of 12,000 million yen during the fiscal year ending March 31, 2011. In early February, the company had predicted a profit of 1,000 million yen for that period of time -- that’s a downturn of 13,000 million yen.
Discuss this on the ZAM forums.
The failed launch of Final Fantasy XIV was not cited as a reason for the downturn. However, Square Enix blamed “more prudent estimates of future cash flows,” a “tightened selection standard” for game titles and “project development cancellation and related losses” as reasons for the deep financial losses. Losses incurred in the wake of the massive earthquake and tsunami that ravaged Japan amounted to 600 million yen.
The company didn’t suffer nearly as much of a loss in sales, which were originally estimated to bring in 130,000 yen but only brought in 125,000 yen. Operating income dipped from an anticipated 8,000 million yen to 7,300 million yen.
Square Enix’s full statement can be read here.
Keep an eye on the Square Enix official forums to see if the Final Fantasy XIV development team addresses this issue directly. These revised earning statements, the continued struggles of FFXIVand the recent hacking of the Playstation Network could spell trouble for the long-term health of the game.
The chance that Final Fantasy XIV would be cancelled now seems unlikely, given all the resources dedicated to developing the game since its release in September. This game may also be Square Enix’s best chance of producing another long-term money maker, especially considering the company has been unwilling to drop Playstation 2 support for Final Fantasy XI to evolve the game for more powerful consoles and gaming computers.
Unless the development team addresses this issue head-on, these revised earnings will definitely increase concerns that Final Fantasy XIV is on the chopping block.