Square Enix cancels undisclosed games
Predicts loss, "tightens selection standard".
Japanese publishing giant Square Enix has cancelled a number of undisclosed video games and promised to improve its greenlight process.
In a revision statement published today, the Final Fantasy maker predicted a net loss for the financial year ending 31st March 2011. It had expected a net profit.
It blamed the predicted loss on the costs incurred in cancelling projects.
"Under a rapidly changing operating environment and more prudent estimates of future cash flows, the Company plans to write down goodwill (approximately 8.8 billion yen)," Square Enix said.
"Further, as a result of introducing a tightened selection standard regarding title lineup to strengthen the revenue base of the Company's digital entertainment segment, project development cancellation and related losses (approximately 4.5 billion yen) are expected."
The Japanese earthquake has also taken its toll, resulting, the company said, in approximately 0.6 billion yen of loss.
Square Enix, which owns the Eidos brand and development studios, has a number of high-profile games due out over the next year.
Deus Ex: Human Revolution, Final Fantasy XIII-2, Tomb Raider, Hitman: Absolution and Thief 4 are all in the works.