Tomb Raider, Hitman and Sleeping Dogs Fall Short As Square Enix President Resigns
In a very similar move to EA’s former CEO, Square Enix president Yoichi Wada has resigned amid a massive loss posted by the publisher. While official announcement of the exact losses is yet to be released, but Square Enix expects it to be “extraordinary” after many of their major titles failed to reach sales targets. Amongst these were Sleeping Dogs, the recently release Tomb Raider and Hitman: Absolution.
But before you think these titles did badly, get a load of this. It hasn’t even been a month since release, but Tomb Raider has managed to sell 3.4 million units worldwide. Hitman: Absolution follows strongly with a worldwide sales figure of 3.6 million copies, while the new IP Sleeping Dogs did relatively well with 1.75 million units sold since launch. What’s even more impressive about these figures is that they do not account for digital copies of the game, which usually account for a large chunk of overall sales.
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However, not one of these games managed to meet sales expectations set by Square Enix. According to the publisher, North American sales were extremely low, with the region making up just a third of the number of units sold in Europe. In addition to this, Square Enix also admitted to having to spend more money on each title because expectations were “strong”, meaning it was harder for each title to make a reasonable amount of profit.
Because of these three high failures and other smaller ones, Square Enix is expected to announce a loss of 10 billion Yen, which translates to around $100 million. That’s an astronomical loss for any company, even one as big as Square Enix. What’s even more frightening is that there is nothing really that interesting in their pipeline at the moment, with the third instalment of Final Fantasy XIII shortly on its way and a new Final Fantasy announcement around the corner. The company also announced that Thief would be making a return, but none of these look like they could salvage a huge loss like this.
Are we looking at another THQ fiasco here? It may be too early to tell, but Square Enix are certainly sailing in troubled waters at the moment.