The co-developer on Crisis Core: Final Fantasy VII Reunion and Paper Mario: Origami King was hit hard by several projects getting the axe by their developers.
Tose, a Japanese developer that's assisted larger studios with development on their games, saw consistent losses during the third quarter of the 2023-2024 fiscal year.
In its recent earnings report spotted by Automaton, net sales for the studio came to 3.243 million yen (or $20.1 million), down 27.6 percent from the previous year. Overall losses amounted to 367 million yen over the nine-month period.
As translated in its report, Tose puts the blame on several projects being cancelled by unnamed clients. Some were in development since the start of the 2023-2024 year, and their cuts led to "a large loss" in revenue.
Blame was also laid at in-progress projects being pushed to the 2024-2025 year. As such, Tose has lowered its forecast projections from 5.520 million yen to 4.830 million yen for the remainder of the fiscal period.
Tose didn't list any specific projects, but it's worth noting that throughout the decades, it's worked with Nintendo and Square Enix. The 44-year-old developer co-developed Crisis Core: Final Fantasy VII Reunion, Scarlet Nexus, and more.
In May, Square Enix said it would cancel several projects and be more selective about its output to tighten up quality (and sales). Given the relationship between the two companies, some (or all) of Tose's struggles may come from those scrapped games.
Amid these losses, Tose affirmed it would "strengthen and thoroughly implement project management rules, and we will steadily launch currently scheduled projects and recover our business performance."
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