Square Enix Sees Lower Profits, Keeps Next-Gen Options Open

Square Enix, the Japanese software developer responsible for the Final Fantasy and Dragon Quest series, posted its financial results for the first half of the fiscal year ending September 30, 2005. According to Japanese financial reports, the company saw a loss of around $28 million for the first half of the year, as several of the company's other hopefuls met with lower-than-expected sales. Romancing SaGa was the highest seller with 450,000 units, and Drag On Dragoon 2 (to be released in the U.S. as Drakengard 2) moved 210,000 copies. However, the firm is still on course to make a profit of $126 million for the fiscal year, thanks to the big-name releases left on the current generation of consoles for the new financial year, including Final Fantasy XII and Kingdom Hearts 2 on PlayStation 2, the latter of which Square Enix president Yoichi Wada was especially ebullient regarding, in announcing the results. It was also mentioned that Kingdom Hearts 2 might come to the West as early as March 2006. However, Square Enix's next-generation plans remain hazier. Though Final Fantasy XI is still on track for an Xbox 360 release, and Final Fantasy Crystal Chronicles has been confirmed as being in the works for Nintendo's Revolution, the main thrust of the company's next-generation strategy is still unclear, with a Reuters Japan report being misconstrued by some websites to mean Wada had announced further Final Fantasy titles for the Xbox 360. However, a press release from Square Enix said that while "speculation about the availability of Final Fantasy series and Dragon Quest series games on [next-generation] systems has been reported on various media […] we have made no concrete decision on our strategic direction of this issue." The spokesman went on to note that "We will continue to disclose any important information regarding business operations immediately after we make any relevant decision." [UPDATE: 3.58pm PST - additional official financial details added.]