Square Enix could lose CEO over massive losses, poor Sleeping Dogs, Tomb Raider, and Hitman sales
Square Enix President and CEO, Yoichi Wada, may be stepping down from his position this summer, the company announced today. The proposed shift in management comes due to “slow sales” of console games, “sluggish performance” of arcade machines, and the “rapidly changing environment” of the games industry, Square Enix wrote in another announcement detailing revised financial forecasts.
The company's fiscal year ends on March 31, and expected numbers have fallen short. Square Enix was originally projecting a profit of 3.5 billion yen, but has instead revised those numbers to a 13 billion yen loss. Square Enix also turned up short with the three major console titles during its fiscal year – Sleeping Dogs, Hitman: Absolution, and Tomb Raider – none of which hit their targets.
Note that the company's expected sales don't include digital downloads, which is a problem the Report has spoken to at length previously. God of War and Twisted Metal creator David Scott Jaffe lamented Square Enix's labeling of such sales, which exceeded 3 million, as weak:
publishers: adjust your budgets and STOP chasing COD numbers. Not every album is Thriller, not every movie is Titanic. It's ok.
— davidscottjaffe (@davidscottjaffe) March 26, 2013
It's also important to note that the change hasn't happened yet. Former Square Enix company director Yosuke Matsuda is Wada's planned replacement. The change is “subject to a resolution” at the company's shareholders meeting in June.
You can read all of Square Enix's briefing regarding its fiscal year as well.