Joystiq http://www.joystiq.com Joystiq http://www.blogsmithmedia.com/http://www.joystiq.com/media/feedlogo.gif Joystiq http://www.joystiq.com en-us Copyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Square Enix president Wada to step down, $106M 'restructuring' loss [update]]]>http://www.joystiq.com/2013/03/26/square-enix-president-wada-to-step-down-106m-restructuring-l/http://www.joystiq.com/2013/03/26/square-enix-president-wada-to-step-down-106m-restructuring-l/http://www.joystiq.com/2013/03/26/square-enix-president-wada-to-step-down-106m-restructuring-l/#comments Square Enix president Wada to step down, $106M 'restructuring' lossYoichi Wada is leaving his post as Square Enix president and representative director, Square Enix announced this morning. Wada, who became the company's president and CEO in December 2000, is to be replaced by former company director and CFO Yosuke Matsuda. According to Square Enix's announcement, the change is "subject to a resolution" at the company's annual shareholders meeting in June, and a board of directors meeting held afterwards.

The news coincides with Square Enix announcing further major revisions to its fiscal year forecasts, which the company attributes to its decision to implement major restructuring in the wake of "the rapidly changing environment of the game businesses." Square Enix expects the changes, which it noted as affecting development policy, organizational structure, and business models, to incur a total "extraordinary" loss of ¥10 billion, or around $106 million.

However, Square Enix says the primary reason for the company's lower-than-expected results is the "sluggish" sales performance of its major games in western territories. When Square Enix announced its nine-month fiscal year net loss of just over ¥5 billion, the company said then it hadn't recovered the losses from earlier in the year because of "the increasingly difficult condition of the worldwide console game market."

Today's forecast revisions show a dramatic turnaround for the company's yearly financials. For the fiscal year ending March 31, Square Enix is projecting now a net loss of ¥13 billion, or around $138 million, compared to initial forecasts of a net profit of ¥3.5 billion, around $37 million. The previous fiscal year, Square Enix posted a net profit of just over ¥6 billion.

Update: GamesBeat is reporting Square Enix sold a number of its free-to-play games to privately funded start-up Sleepy Giant, with sources "familiar with the matter" saying four unannounced games were included in the deal. Neither party has announced the deal, with a Square Enix representative telling GamesBeat it doesn't "comment on any details for external development deals."

JoystiqSquare Enix president Wada to step down, $106M 'restructuring' loss [update] originally appeared on Joystiq on Tue, 26 Mar 2013 07:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>financialsjapanlossrestructuringsquare-enixyoichi-wadayosuke-matsudaTue, 26 Mar 2013 07:00:00 EST<![CDATA[Wii U will sell at a loss from launch]]>http://www.joystiq.com/2012/10/25/wii-u-will-sell-at-a-loss-from-launch/http://www.joystiq.com/2012/10/25/wii-u-will-sell-at-a-loss-from-launch/http://www.joystiq.com/2012/10/25/wii-u-will-sell-at-a-loss-from-launch/#comments Wii U will sell at a loss during launchThe Wii U will sell at a loss when it launches, Nintendo revealed today. In an investor briefing, Nintendo President and CEO Satoru Iwata disclosed the console's price is "below cost," citing it as one of the reasons for the company's reduced annual net profit outlook announced yesterday. The 3DS, however, is now no longer selling at a loss, a turnaround Nintendo predicted earlier this year.

Iwata's statement reads:
"In addition to the yen's continuous appreciation, the Wii U hardware will have a negative impact on Nintendo's profits early after the launch because rather than determining a price based on its manufacturing cost, we selected one that consumers would consider to be reasonable. In this first half of the term before the launch of the Wii U, we were not able to make a profit on software for the system while we had to book a loss on the hardware, which is currently in production and will be sold below cost. Our loss has therefore widened during the second quarter in spite of bringing the Nintendo 3DS hardware back to profitability. Although we expect our financial performance to be revitalized, under these circumstances, unfortunately we cannot say that we will achieve "Nintendo-like" profits within this fiscal year."
Nintendo revealed yesterday a loss of approximately $351 million for the first half of its fiscal year, along with predicted annual net profits of $75.2 million, down from $251 million. However, Nintendo expects to sell 24 million units of Wii U software worldwide by the end of March 2013, on the back of the 5.5 million consoles the company predicts it'll shift in that time. Iwata also noted GameStop has taken 250,000 Wii U pre-orders in North America, as of last week.

JoystiqWii U will sell at a loss from launch originally appeared on Joystiq on Thu, 25 Oct 2012 06:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>3dslossnintendoprofitssatoru-iwatawii-uThu, 25 Oct 2012 06:15:00 EST<![CDATA[Nintendo cuts annual profit forecast by 70%, first-half loss of $351 million]]>http://www.joystiq.com/2012/10/24/nintendo-cuts-annual-profit-forecast-by-70-first-half-loss-of/http://www.joystiq.com/2012/10/24/nintendo-cuts-annual-profit-forecast-by-70-first-half-loss-of/http://www.joystiq.com/2012/10/24/nintendo-cuts-annual-profit-forecast-by-70-first-half-loss-of/#comments Nintendo cuts annual profit forecast by 70%, firsthalf loss higher than expectedNintendo slashed its annual net profit outlook by 70 percent, following first-half losses of approximately $351 million, 40 percent greater than expected. Ahead of the Wii U launch, the Japanese company now expects net profits of ¥6 billion ($75.2 million) for the fiscal year ending March 31 2013, compared to initial forecasts of ¥20 billion ($251 million).

In those initial forecasts Nintendo predicted losses of ¥20 billion for the six-month period ending September 30, but today revealed a significantly greater figure of almost ¥28 billion ($351 million). The company cited weaker than expected overseas sales of 3DS hardware and software, along with increased yen appreciation.

Nintendo also revealed the 3DS shifted 5 million units across the six months, taking the console to over 22 million worldwide sales to date. The company now expects 17.5 million sales for the 3DS by the end of the fiscal year, down 1 million from initial projections.

Nintendo of course expects the Wii U to takes figures back into the black in six months time, with the company now predicting 5.5 million units sold worldwide by March 2013.

JoystiqNintendo cuts annual profit forecast by 70%, first-half loss of $351 million originally appeared on Joystiq on Wed, 24 Oct 2012 08:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>3dsdsforecastjapanlossnintendoprofitswiiwii-uWed, 24 Oct 2012 08:00:00 EST<![CDATA[THQ sees net loss of $239.9 million, still in business]]>http://www.joystiq.com/2012/05/15/thq-sees-net-loss-of-239-9-million-still-in-business/http://www.joystiq.com/2012/05/15/thq-sees-net-loss-of-239-9-million-still-in-business/http://www.joystiq.com/2012/05/15/thq-sees-net-loss-of-239-9-million-still-in-business/#comments ImageTHQ saw a net loss of $239.9 million for the fiscal year ending March 31, 2012, $100 million more than the previous fiscal year's loss of $136.1 million.

"We have made significant changes to our business, and are on track to execute our strategy of delivering quality connected core gaming experiences, beginning with the sequel to the award-winning Darksiders in August," president and CEO Brian Farrell said in a THQ earnings statement.

THQ has seen a rough year, with plummeting revenue despite the success of Saints Row: The Third and WWE '12. THQ laid off 240 employees, slashed the salaries of its head honchos and cut its "kids' licensed video games" department earlier this fiscal year, following quarter losses of nearly triple the previous period.

THQ has sold through 84 percent of its shipped uDraw tablets and expects to sell its remaining inventory in fiscal 2013. The company's "future kids' license commitments" have been reduced by $30 million, THQ reports.

THQ describes its emergency layoffs, salary cuts and company rehashing as follows: "The company exited the traditional kids' licensed games business, and streamlined its product line, organization and cost structure to support a smaller company positioned for sustained profitability."

JoystiqTHQ sees net loss of $239.9 million, still in business originally appeared on Joystiq on Tue, 15 May 2012 17:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>fy-2012kinectlossmicrosoftmobilemovenintendopcplaystationps3THQwiixboxTue, 15 May 2012 17:30:00 EST<![CDATA[Sony reports continued loss, expects games division to remain unprofitable]]>http://www.joystiq.com/2009/05/14/sony-reports-continued-loss-expects-games-division-to-remain-un/http://www.joystiq.com/2009/05/14/sony-reports-continued-loss-expects-games-division-to-remain-un/http://www.joystiq.com/2009/05/14/sony-reports-continued-loss-expects-games-division-to-remain-un/#comments
It's no secret: Sony has lost a lot of money. Unfortunately, the troubled times are far from over for the Japanese conglomerate. Sony is now predicting a 110 billion yen ($1.15 billion) loss for the financial year to March 2010, due to losses at many of its divisions, including PlayStation. Sony has been affected by the recession, with dampened sales of its cameras, phones, and televisions.

The company is aiming to boost its games division, with a 30 percent increase in sales of the PS3, to 13 million units for the fiscal year. However, although Sony plans on selling more PS3 systems, Reuters notes the company expects "its games division to stay unprofitable."

Expecting the games division to stay unprofitable may seem strange in light of lowered production costs and increasing PS3 and PSN software sales. Perhaps, this could be a sign of the oft-rumored price cut. A price drop would help accelerate PS3 sales, while reducing the profitability of the PlayStation brand. However, with a projection as grim as a billion dollar loss, we wouldn't be surprised if Sony holds back on loosening its wallet a bit more.

JoystiqSony reports continued loss, expects games division to remain unprofitable originally appeared on Joystiq on Thu, 14 May 2009 10:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businesslosssalessonyThu, 14 May 2009 10:30:00 EST<![CDATA[Sony games division expects increased loss of $337 million]]>http://www.joystiq.com/2009/01/22/sony-games-division-expects-increased-loss-of-337-million/http://www.joystiq.com/2009/01/22/sony-games-division-expects-increased-loss-of-337-million/http://www.joystiq.com/2009/01/22/sony-games-division-expects-increased-loss-of-337-million/#commentsFiled under: , ,


Sony Corp. is having a bad year, and it appears that the company's games division isn't helping the situation. GI.biz reports that the PlayStation group is expected to increase losses by $337 million this fiscal year, though it's unclear what number the loss is increasing from. The erosion is due to lower than expected sales of hardware and software.

Sony's video game division seems to have teetered between good and bad financial news over the last couple years. The very dim silver lining here is if the reports of Sony CEO Howard Stringer wanting to focus on software are correct, the PlayStation division shouldn't suffer as mightily as others.

JoystiqSony games division expects increased loss of $337 million originally appeared on Joystiq on Thu, 22 Jan 2009 10:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>financiallossPS3PSPsonysony-computer-entertainmentThu, 22 Jan 2009 10:00:00 EST<![CDATA[Sony could be losing much more than $130 on every console sold]]>http://www.joystiq.com/2008/05/15/sony-could-be-losing-much-more-than-130-on-every-console-sold/http://www.joystiq.com/2008/05/15/sony-could-be-losing-much-more-than-130-on-every-console-sold/http://www.joystiq.com/2008/05/15/sony-could-be-losing-much-more-than-130-on-every-console-sold/#commentsFiled under:

We know that the PS3 is an expensive system to make. Sony lost hundreds of dollars on each system sold, as the technology offered in Sony's home console is far more expensive than what it sells for in retail stores. Even now, over a year after the launch of PS3, Sony continues to lose money on each system. While Sony internal data suggests that the loss is $130 per system, a closer look by The Guardian shows that it may be much more.

"On Sony's own figures, the games division made a loss of $130 for each PlayStation 3 shipped. Let's assume that it's making pots of money on the PSP and the PlayStation 2: the PS2 is now hugely profitable and still sells more games than anything else. These two platforms could easily have made a profit of $1.2bn in the year. In that case, the total PS3 loss would have been $2.4bn shared between 9.24m PS3 consoles, or $260 per PS3 -- including any attached Sony games."

While this is deduced from anecdotal evidence, it's clear that Sony is still losing quite a bit of money on each system sold. Perhaps it really is wise to forgo getting a large install base for now ... until Sony can reduce the costs of manufacturing even further.

[Via Next-Gen]

JoystiqSony could be losing much more than $130 on every console sold originally appeared on Joystiq on Thu, 15 May 2008 14:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>lossps3Thu, 15 May 2008 14:30:00 EST<![CDATA[Sega Sammy posts loss, job cuts imminent]]>http://www.joystiq.com/2008/05/14/sega-sammy-posts-loss-job-cuts-imminent/http://www.joystiq.com/2008/05/14/sega-sammy-posts-loss-job-cuts-imminent/http://www.joystiq.com/2008/05/14/sega-sammy-posts-loss-job-cuts-imminent/#commentsFiled under:

It's no wonder Sonic is looking blue these days (har har). Sega Sammy has reported a ¥52.47 billion (US $501 million) loss in its fiscal year 2008, with sales of ¥458.98b (US $4.38b). Comparatively, the company posted ¥43.46b net income (¥95.93b difference) with ¥528.4b in sales (¥69.4b difference) in fiscal year 2007.

According to GameDaily, Sega's entertainment group will be cutting 400 jobs and close 110 facilities. The company is predicting that fiscal year 2009, which ends in March 2009, will see a net income of ¥5b with sales of ¥470b.

JoystiqSega Sammy posts loss, job cuts imminent originally appeared on Joystiq on Wed, 14 May 2008 14:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businesslosssammysegasonicWed, 14 May 2008 14:15:00 EST<![CDATA[Sony's game division to post smaller losses]]>http://www.joystiq.com/2008/05/02/sonys-game-division-to-post-smaller-losses/http://www.joystiq.com/2008/05/02/sonys-game-division-to-post-smaller-losses/http://www.joystiq.com/2008/05/02/sonys-game-division-to-post-smaller-losses/#commentsFiled under:

Are things finally looking up for the Japanese electronics giant? Sony, plagued by a slowing US economy and weakening US dollar, has struggled to meet its financial targets. However, things aren't all gloom and doom. A report by the Nikkei (via Reuters) shows that Sony's video game division is starting to turn around. The fiscal year, ending in March 2007, was a disastrous affair for the company, with an operating loss of 232 billion yen. The high cost of PS3 production and development bled money from the department.

However, due to improving sales and smaller manufacturing costs, Sony's game division will see its operating loss shrink by 100 billion yen in its March 2008 fiscal year. While that means it will still have lost 132 billion yen, it's certainly a turnaround from the previous year. Overall profitability of Sony has improved thanks to the game division's smaller losses.

PlayStation, once the leading brand of video games, has been struggling since the launch of the PS3. In the latest console generation, Nintendo has been posting incredible profits (much to the happiness of investors). Microsoft's game division has historically posted loss after loss, but has finally started to become profitable in recent months.

JoystiqSony's game division to post smaller losses originally appeared on Joystiq on Fri, 02 May 2008 09:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>lossprofitps3sonyFri, 02 May 2008 09:45:00 EST<![CDATA[Analyst: EA financial troubles are only beginning]]>http://www.joystiq.com/2007/11/02/analyst-ea-financial-troubles-are-only-beginning/http://www.joystiq.com/2007/11/02/analyst-ea-financial-troubles-are-only-beginning/http://www.joystiq.com/2007/11/02/analyst-ea-financial-troubles-are-only-beginning/#commentsFiled under:


While most analysts have been upbeat about EA's $195 million loss in the last quarter, Deutsche Bank analyst Jeetil Patel is saying it's only the beginning. Deusche Bank has downgraded the stock to "sell,", with Patel pointing to a "lack of major outperformance on unit volumes" among EA titles. He says despite market enthusiasm, EA is not achieving the profits it once did, a situation he doesn't see changing in the foreseeable future.

One thing Patel really gets into is that EA's product is not moving quickly. He states that several of the next-gen games have been marked down within 4-6 months of release and thinks "this could become a more widespread problem considering lackluster product quality, weak sell-through thus far (even on major franchises), and a crowded holiday selling season that should favor a handful of titles (Call of Duty 4, Halo 3, Super Mario, Guitar Hero to name a few)." Games like Rock Band, The Orange Box and Crysis are pointed out as not being owned by EA -- they can't be depended on for fiscal franchise fortitude in the long term. Patel goes on to conclude that EA will continue to lose market share going forward.

JoystiqAnalyst: EA financial troubles are only beginning originally appeared on Joystiq on Fri, 02 Nov 2007 22:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businesseaElectronic-ArtslossFri, 02 Nov 2007 22:00:00 EST<![CDATA[Xbox division has $1.9 billion loss, blame red rings]]>http://www.joystiq.com/2007/07/20/xbox-division-has-1-9-billion-loss-blame-red-rings/http://www.joystiq.com/2007/07/20/xbox-division-has-1-9-billion-loss-blame-red-rings/http://www.joystiq.com/2007/07/20/xbox-division-has-1-9-billion-loss-blame-red-rings/#commentsFiled under: , ,

For Microsoft's fiscal year ending June 30 the division which includes the Xbox posted a $1.9 billion loss -- $1.2 billion of that was from the fourth quarter alone when Microsoft owned up to the Red Ring of Death issues. The division actually climbed 28% over the year and may even be profitable soon according to Microsoft entertainment division lead Robbie Bach, who sold millions in stock just as the Red Ring of Death warranty issue broke -- but, that's just a coincidence.

Microsoft says it shipped 6.6 million units of the Xbox 360 and now has a base of 11.6 million and manufacturing costs for the Xbox 360 continue to decline. They also say that revenue in games increased 19% to a total of $650 million. They're also expecting a blockbuster holiday with that little game called Halo 3 coming out along with some other highly anticipated titles. If it weren't for the RROD debacle Xbox wouldn't have actually had such a bad year. Now we wait for the price drop.

JoystiqXbox division has $1.9 billion loss, blame red rings originally appeared on Joystiq on Fri, 20 Jul 2007 09:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>billionbusinesscashlossmicrosoftoperatinglossrrodxboxXbox-360Fri, 20 Jul 2007 09:15:00 EST<![CDATA[Atari lost another $70 million this year]]>http://www.joystiq.com/2007/07/03/atari-lost-another-70-million-this-year/http://www.joystiq.com/2007/07/03/atari-lost-another-70-million-this-year/http://www.joystiq.com/2007/07/03/atari-lost-another-70-million-this-year/#commentsFiled under: ,

Atari Inc. plans to report a loss of $71.3 million for their fiscal year which ended March 31. This is up from the $69 million loss from the previous fiscal year. Most of the loss is due to some jargon regarding an "impairment of goodwill," relating to a significant erosion of their market capitalization in which Atari lost an extra $54.1 million -- otherwise they would have only lost $17.2 million. In May, Atari cut 20% of their workforce and parent company Infogrames hasn't seen a profit in seven years.

It's kinda sad seeing what Atari has become. Instead of being the granddaddy the industry looks up to, they've become the worthless geriatric that's been locked away in the state-funded old folks home and forgotten. Although, the upside is that Atari actually has some stuff we're looking forward to with Alone in the Dark and The Witcher. We'll find out next week if there is some hope for the future or if we can already begin reporting another $70 million loss for next year.

[Via Gamasutra]

JoystiqAtari lost another $70 million this year originally appeared on Joystiq on Tue, 03 Jul 2007 15:14:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>alone in the darkatarilossmoneyprofitthe witcherTue, 03 Jul 2007 15:14:00 EST<![CDATA[Left Behind Games leaves behind money]]>http://www.joystiq.com/2007/02/21/left-behind-games-leaves-behind-money/http://www.joystiq.com/2007/02/21/left-behind-games-leaves-behind-money/http://www.joystiq.com/2007/02/21/left-behind-games-leaves-behind-money/#commentsFiled under: , ,

According to Next-Gen, Left Behind Games posted a $4.1 million loss for its fiscal third quarter. This was on top of a last year's loss of $934,000. It really doesn't mean much given their first product, Left Behind: Eternal Forces, just debuted at the end of the last calendar year.

Troy Lyndon, CEO of Left Behind Games, says the company will be profitable within the year, "We are expanding our sales channels beyond major retailers to include more Christian bookstores, ministry sponsorships, church outreaches, Christian conferences, LAN center licensing, viral online and Internet sales, music concerts and trial versions. We look forward to a very prosperous year."

Left Behind Games is already fixing previous mistakes by using Big Huge Games' (Rise of Nations) RTS engine and some of their staff to make a better sequel -- it's not like the next game could be worse.

JoystiqLeft Behind Games leaves behind money originally appeared on Joystiq on Wed, 21 Feb 2007 04:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businessleft behindleft behind gamesLeftBehindLeftBehindGameslossmoneyPCprofitsWed, 21 Feb 2007 04:30:00 EST<![CDATA[PS3 hurts Sony profits, but less than expected]]>http://www.joystiq.com/2007/01/30/ps3-hurts-sony-profits-but-less-than-expected/http://www.joystiq.com/2007/01/30/ps3-hurts-sony-profits-but-less-than-expected/http://www.joystiq.com/2007/01/30/ps3-hurts-sony-profits-but-less-than-expected/#commentsFiled under: , , ,

Yesterday's Bloomberg prediction that the PS3 would drag down Sony profits 50 percent turned out to be a little lofty. While the company's games division did show a withering 54.2 billion yen (about $446 million) loss for the quarter ending Dec. 31 (down from a 67.8 billion yen/$558 million profit in 2005), strong sales of Bravia TVs and other Sony electronics meant the company as a whole showed only a modest five percent decrease in profits for the quarter, year over year.

Sony blamed the weak game unit performance on the massive costs associated with rolling out the PS3 and selling it at a substantial loss. Slowing sales for the PSP also hurt the bottom line, Sony said. Despite the bad news, the company actually raised their profit forecast for the fiscal year ending March 31. Still, unless Sony can find another quick-selling "champion product" along the lines of the PS2, Sony's bottom line may be continuing in this same direction for a while.

JoystiqPS3 hurts Sony profits, but less than expected originally appeared on Joystiq on Tue, 30 Jan 2007 12:45:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>businessfinanciallossprofitPS2PS3PSPTue, 30 Jan 2007 12:45:00 EST