Square Enix Warns Investors To Brace For $140 Million In Losses From Canceled Games

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Square Enix is still crunching the numbers for its Q1 2024 financial report but it’s already giving investors fair warning that bad news is on the way. The studio revealed in a memo to investors earlier this week that they’re expecting “extraordinary losses” to the tune of $140 million following the cancellation of multiple games in its portfolio.

The cancellations were part of Square Enix’s “more selective” approach to game development and its efforts to be more mindful of how it allocates its resources. The recently released Final Fantasy XVI and Final Fantasy VII: Rebirth also reportedly underperformed last quarter. The company is now banking on Final Fantasy XIV’s upcoming Dawntrail expansion to bolster its revenues when it launches this summer.

Square Enix will be publishing its official Q1 20224 financial report on May 13 if you want to dive into the details.