Square Enix has posted a report that they’re expecting to claim “extraordinary losses” in their latest fiscal year ending in March 2024 totalling 22.1 billion yen (roughly $140 million USD).

The new financial report notes the company will recognize extraordinary losses in “content abandonment losses” due to a revised policy on “development of high-definition (HD) games.”

Furthermore, the company said the new policy change has “the intention of being more selective and focused in the allocation of development resources.”

While it’s not outright stated, the above notes are PR speak for what is several games being cancelled, as the policy change led to Square Enix reporting the “abandonment” loss of 22.1 billion yen.

Here’s the full message from Square Enix:

Nature of the extraordinary losses

At 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.

Outlook

The 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.