Square Enix sees losses in fiscal Q1, but handheld and social games help

Square Enix faced net losses of 2.077 billion yen ($27 million) in the fiscal quarter ending June 30. The Digital Entertainment division, responsible for home and mobile video games, reported that "sales of console games were weak" in the quarter, but sales of portable games, specifically the Japan-only Dragon Quest Monsters: Terry's Wonderland 3D, were more positive.

Square's mobile and social games, including the browser game Sengoku Ixa and the mobile Final Fantasy Brigade, also performed well.

Back in May, the company forecasted that the fiscal year would end with net income up 48.5 percent, a forecast that it's holding to even following this slow quarter.