The first effects of Square Enix’s “extraordinary financial losses” are beginning to rear their ugly heads. CEO Yochi Wada stepped down to make way for better management, and layoffs have begun to spread, starting with the Square Enix Los Angeles office.
Square Enix confirmed that “a number of positions” had been “eliminated”” in a press statement.
We can confirm that Square Enix’s Los Angeles office has eliminated a number of positions as part of the corporate restructuring announced last week. This is an unfortunate situation and we are offering assistance and severance packages to any employees affected by this, we want to thank them for their hard work and sincerely wish them well in the future.
Square Enix placed the blame of their losses on the “slow sales of major console game titles in North American and European markets.” Many of these major console games are believed to be the Western developed franchises obtained when Square Enix purchased Eidos.
Tomb Raider, Hitman Absolution, Sleeping Dogs, and Deus Ex: Human Revolution had all been critical successes, but came up short on sales figures. Tomb Raider alone has shipped out an impressive 3.4 million nuits, but even with such a large number still raked in as a loss for the company with a budget put somewhere around $100 million.
With the huge budget and development cycles dedicated to this Final Fantasy XIII lull and Final Fantasy XIV fiasco they can’t seem to dig out of, Square Enix is going to need something big to turn them around very soon.
Best of luck to those who lost their jobs when it comes to finding new employment elsewhere. You’re talented folks.