Square Enix has announced an extraordinary loss alongside a big change in the development pipeline for their Luminous Productions studio.
Launched back in March of this year, Luminous Productions was primarily working on post-launch support and content for Final Fantasy XV. Now, the company is shifting their focus to develop “large-scale, high-quality AAA game titles, which best leverages [Luminous Productions’] strengths.”
Alongside the shift in development is the company revealing an extraordinary loss of 3,733 million yen (approximately $33 million) for the six months leading up to September 30th, 2018. This is likely due to the final couple DLC packs for Final Fantasy XV being cancelled.
Here’s the press release:
Notice of Booking of Extraordinary Loss
Square Enix Holdings Co., Ltd. (the “Company”) announces today that it has booked the following extraordinary loss in the financial results for the six-month period ended September 30, 2018.
1. The cause and nature of the extraordinary loss
Having conducted an in-depth review of the business strategy for Luminous Productions Co., Ltd., a wholly-owned subsidiary (the “Subsidiary”), the Company had decided to focus the Subsidiary’s development efforts on large-scale, high-quality AAA game titles, which best leverages the Subsidiary’s strengths. This decision has resulted in the booking of an extraordinary loss amounting to 3,733 million yen, including the disposition of the portion of the content production account related to the game titles under development at the Subsidiary and impairment losses on intangible assets, in the Company’s financial results for the six-month period ended September 30, 2018.
2. Impact on financial results
The aforementioned extraordinary loss has been fully reflected in the financial results announced today as the “Consolidated Financial Results for the Six-Month Period Ended September 30, 2018 (Japan GAAP).”