The company released the following statement:
The business environment surrounding the [Square Enix] Group is in the midst of major changes, where smart devices such as smartphones and tablet PCs are spreading rapidly, while the console game markets in North America and Europe are increasingly competitive and oligopolistic. In light of such environmental changes, the Group is focusing all efforts on a substantial earnings improvement through driving reforms of business structure in order to establish new revenue base.
Fortunately, Square Enix is expecting a turnaround in the coming months. In fact, the publisher believes the changes will make them profitable on the order of $344 million to $590 million over the coming year.