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Square Enix Expects to “Recognize” About $140 Million in Losses

Square Enix announced that it expects to record “extraordinary losses” of about 22.1 billion yen (~ $140 Million) due to “content abandonment losses” which basically means projects and games that have been abandoned or canceled by the company. The losses were reportedly due to The Board of Directors voting 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.” Additional details via Square Enix:Notification of Recognition of Extraordinary LossesSquare 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 LossesAt 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. OutlookThe 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.

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Abdul Saad

Abdul Saad is a seasoned entertainment journalist and critic and has been writing for five years on multiple gaming sites. When he isn't writing or playing the latest JRPG, he can be found coding games of his own or tinkering with something electrical.

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