Square-Enix Q1: losses cut by 75%, company still in red

Square-Enix has posted its first-quarter financial results for the three month period ended June 30. The company remains in the red despite culling its year-on-year losses by 75%.

GI.biz reports that for the quarter, Square-Enix posed a loss of ¥493 million ($5 million), which is a 75% reduction over its ¥2.01 billion ($21 million) loss for the same period last year.

The company has also posted an extraordinary loss - those suffered under unusual circumstances - to the tune of ¥1.6 billion ($16.2m).

Square's report explains, "In response to the latest environmental changes in the game industry, the Group has implemented a change in its development policy, and conducted a comprehensive review on work-in-progress game titles for the three-month period ended June 30, 2013."

This suggests that projects have either been cancelled or shifted somehow. The report doesn't offer any further insight.

Regardless of the loss, Square's full-year projection remains at between ¥3.5-6 billion.

In software, the company had no big releases in the quarter, but social and browser titles such as Sengoku IXA and Kaku-San-Sei Million Arthur performed well. The company's digital entertainment made ¥115 billion in Q1 revenue, while its amusements arm made ¥9.7 billion.

More will follow.