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Square Makes the Yen, Sony Makes a Loss

By acharris7707-02-2014

Two major companies, each one with a different financial story to tell. Let us first start with Square Enix, who made 5.18 billion yen ($51 million) for the last nine-month period till December 31. This is good profitable return, considering they had a couple of rough patches last year. Especially considering that the last fiscal year, the company reported a similar figure, but as a net-loss.

Square said that the reason for the restructure was due to the fact that it was difficult to sell its major games worldwide. This led to the posting of a 1.6 billion yen (around $16.2 million) "extraordinary loss" in August 2013 after reviewing its work-in-progress games. Six-months on and things are looking good, and with the success of the resurrected MMO Final Fantasy 14: A Realm Reborn, the future looks bright for Square Enix.

Now we come to Sony, changes are soon to be happening, with them selling the Vaio PC business, and making changes to its TV arm. This will also result in 5,000 staff layoffs over the next year, with 1,500 in Japan and 3,500 overseas. A projected net profit for the fiscal year was 30 billion yen, (around $295 million) but following everything it will be re-adjusted to a loss of 110 billion yen ($1.08 billion).

This announcement comes after a strong Q3 net profit of $257 million, which is thanks to the success of the PS4 launch. The new console added to the net sales of just $23 billion, with PlayStation sales raising a yearly figure of 64.6 percent, or 33 percent with exchange rate fluctuations. Many will no doubt question the decision to stop the PC manufacturing, and making the TV arm their main focus.

Besides the TV side and the 4K models they are manufacturing, Sony are also going to make a more concentrated effort on mobile devices, like Smartphones and Tablets. In addition to the 5,000 layoffs, around 90 billion yen (around $886 million) will be invested to resurrecting expenses over the next year or so. Things are not looking good for Sony at the moment, whereas Square is enjoying a rosy patch. Let us know what you think.


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