Square Enix Corporate Restructuring Begins

square-enix-restructure

As we reported last week Yoichi Wada is going to be stepping down from his CEO position at Square Enix. The corporate restructuring has begun with a string of layoffs at the Los Angeles office. Reports suggest that the marketing, public relations, accounting, IT, events, and other departments have been affected.

We also have the sales figures for three of Square Enix’s most recent releases. Sleeping Dogs, Hitman: Absolution, and Tomb Raider have all released to critical claim. Users have also enjoyed all three titles, but sales figures haven’t quite hit the mark as of yet. All three games have had successful sales numbers, but have failed to meet the hefty expectations set by Square Enix. It boils down to the fact that game production costs were astronomical. Tomb Raider itself was said to have cost $100 Million to produce. It’s also important to note that Tomb Raider has almost met it’s sales expectations in it’s first month on the market, but as we all know SKU’s tend to drop in price considerably shortly after game releases, so it may be tough to hit the actual profit margin needed. Here’s the actual vs. expected for the three titles mentioned:

Sleeping Dogs
Actual: 1.75 million units
Expected: 2 – 2.5 million units

Hitman: Absolution
Actual: 3.6 million units
Expected: 4.5 – 5 million units

Tomb Raider
Actual: 3.4 million units
Expected: 5 – 6 million units

Sales figures are courtesy of an internal Square Enix PDF. Our thoughts go out to all those affected. You can hear the iGR staff talk about the resignation of Yoichi Wada, and all of last weeks biggest news in our brand new Grumpy Old Gamers Podcast

Dylan Zellmer

I split time between games journalism and making video games. My love of it’s Always Sunny in Philadelphia, A Song of Ice and Fire (Game of Thrones), fitness and my family define me otherwise.