Square Enix has shifted the focus of its March-established subsidiary Luminous Productions to the development of “large-scale, high-quality AAA game titles, which best leverages [Luminous Productions’] strengths.”
The shift in focus has resulted in Square Enix booking an extraordinary loss of 3,733 million yen (approximately $33 million) for the six-month period ended September 30, 2018.
Here is the full 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).”