Updated Mar 21, 2026 by Square Enix
Square Enix reported a net loss of ¥13,714 million for the fiscal year ending March 31, 2013, marking its first operating loss since the 2003 merger despite a 15.7% increase in net sales to ¥147,981 million.
The company incurred ¥11,210 million in extraordinary losses due to the disposal and revaluation of game content as part of a major organizational restructuring.
High-definition (HD) titles, specifically Tomb Raider and Hitman: Absolution, failed to meet sales targets, leading to a structural crisis driven by high retail promotion costs and intense competition.
Management is pivoting toward a 'unified system' strategy that prioritizes digital distribution, free-to-play models, and tablet development to address long development cycles in the console space.
While the Amusement division posted an operating loss due to weak arcade machine sales, the company maintained a stable liquidity position with ¥98,822 million in cash and cash equivalents.
Net cash from operating activities dropped by 98.4%, prompting the company to shift focus toward network-compliant entertainment and region-specific content portfolios to adapt to the global market.
Square Enix reported a net loss of ¥13,714 million for the fiscal year ending March 31, 2013, marking its first operating loss since the 2003 merger despite a 15.7% increase in net sales to ¥147,981 million.
The company incurred ¥11,210 million in extraordinary losses due to the disposal and revaluation of game content as part of a major organizational restructuring.
High-definition (HD) titles, specifically Tomb Raider and Hitman: Absolution, failed to meet sales targets, leading to a structural crisis driven by high retail promotion costs and intense competition.
Management is pivoting toward a 'unified system' strategy that prioritizes digital distribution, free-to-play models, and tablet development to address long development cycles in the console space.
While the Amusement division posted an operating loss due to weak arcade machine sales, the company maintained a stable liquidity position with ¥98,822 million in cash and cash equivalents.
Net cash from operating activities dropped by 98.4%, prompting the company to shift focus toward network-compliant entertainment and region-specific content portfolios to adapt to the global market.