Square Enix Shares Tumble by Most in 13 Years on Weak Outlook - Bloomberg
If you remember that SE previously stated that FFXVI was within expectations, this is explained by it meeting initial expectations but having no momentum and subsequently failing to meet annual expectations.
View: https://twitter.com/6d6f636869/status/1790227310567960626
Sales of Final Fantasy VII Rebirth, Final Fantasy XVI and Foamstars — all released exclusively for Sony Group Corp.'s PlayStation in the previous fiscal year — fell short of the Japanese game publisher's expectations in both revenue and profit, Takashi Kiryu told analysts the previous day. The company now expects to earn an operating income of ¥40 billion this year, widely missing the average of analyst estimates of ¥57 billion. Its sales and dividend outlook also fell short of expectations.
If you remember that SE previously stated that FFXVI was within expectations, this is explained by it meeting initial expectations but having no momentum and subsequently failing to meet annual expectations.
View: https://twitter.com/6d6f636869/status/1790227310567960626
Square Enix said:
-FF16 sales fell short of expectations. Initial momentum was in line with expectations, but the games failed to reach FY goal as its momentum slowed. No updates from sales number last announced at 3 million
-FF7 Rebirth sales fell short of expectations. Initial momentum didn't reach an internal target. No sales number to share
-Foamstars fell short of expectations. Initial momentum didn't reach an internal target. No sales number to share
-Remains confident FF16 can achieve its goal over the original 18-month sales plan. Also, sales of Rebirth and Foamstars aren't necessarily bad.
-Reorganized develoment team into five console teams, one smartphone game team
-Has been relied too much on an individual's creativity. Will promote sharing game making how-how among teams and will seek best balance of individual creativity and organizational discipline
-DQ12 remains under development.
Investors react:
-sell shares heavily, stocks fell to the day's trading limit
-concerns are pipelines have become too empty, no big titles that can lift up the company's top line over the next couple of years
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