Wada Sees A "Big Impact" From PS3 Next Fiscal Year?

[dereksworl]

Possibly get back some of those Playstation exclusives?

Square Enix sees big impact from PS3 cut next year

* PS3 cut won't lead to revision in 2009/10 f'casts-president

* Big boost from PS3 cut likely to come in 2010/11-president

* Shares close up 2.4 pct, lifted by brokerage report (Recasts, adds comments from president)

TOKYO, Aug 26 (Reuters) - Sony Corp's (6758.T) introduction of a cheaper PlayStation 3 will have a big impact on video game sales in the next business year following a limited boost this year, the head of game maker Square Enix Holdings (9684.T) said.

Square Enix President Yoichi Wada told a gathering of reporters on Wednesday the PS3 cut would be positive for game sales but not enough to warrant an upward revision to its sales and profit forecasts in the current year to March 2010.

Last week Sony said it would roll out a slimmer, cheaper version of the PS3 in the first week of September at $299 in the United States, 299 euros in Europe and 29,980 yen in Japan, a quarter of the previous price. [ID:nLI152101]

The move is expected to give a lift to sales of the PS3 and game makers, which include Electronic Arts Inc (ERTS.O), Activision (ATVI.O) and Capcom Co (9697.T).

Square Enix and its recently acquired Eidos unit have announced 3 titles for the PS3, including the latest edition of its popular "Final Fantasy" series, which it is planning to launch this winter.

"In terms of the impact (the PS3 cut) will have on this financial year's earnings, I don't think there will be a major difference," Wada said. "But I expect there to be a big impact from next year." Continued...

[Musashi]

Not sure if Wada's ready to admit he was wrong to undersupport PS3 and oversupport the other side. Or maybe, given what Max said about possible senior management shake-ups he could be trying to save face.

[AikonEnt]

While what he says is interesting and probably correct, he's still a tool

[hellmonkey]

Well theres no need to adjust your projections when you dont have any games for sale on the console, dumbass.

[Velmeran]

Square Enix, also known for the Dragon Quest game series, has forecast its operating profit to double to 25 billion yen in the current year to March on sales of 180 billion yen.

Under exchange disclosure rules, Square Enix would need to revise up its operating profit forecast if it determined the result would likely be 30 percent above its estimate.

Square Enix shares closed up 2.4 percent at 2,335 yen, outperforming a 1.4 percent rise in the benchmark Nikkei average .N225 after Bank of America Merrill Lynch raised its target price on Square Enix to 2,800 yen from 2,530 yen and reiterated its "buy" rating.

In a report to clients the brokerage said Square Enix has a strong line-up of games able to sell more than a million copies including Batman from Eidos, Dragon Quest 9 and Final Fantasy 13, which it predicts will be released in November or December. (Editing by Chris Gallagher)

Is the remaining part of the article, which was on the 2nd page.

[Cplhicks]

Wada sees "big impact" from actually releasing games on a system that people will actually buy them on.

[Maximus]

Originally Posted by Musashi

Not sure if Wada's ready to admit he was wrong to undersupport PS3 and oversupport the other side. Or maybe, given what Max said about possible senior management shake-ups he could be trying to save face.

I see it as Wada trying to downplay the price cut so it looks like he made the right decision in not supporting the PS3. Basically a continuation of the strategy he is currently following.

No worries as the board elections next year will prove very interesting...

[BluOgre]

Of course Wada won't see an impact with the PS3 price cut......all the games have been exclusive on X360. How can they make money off a console you have NO GAMES on lol? It's amazing this guy still has a job.

[Septimus Prime]

Originally Posted by BluOgre

Of course Wada won't see an impact with the PS3 price cut......all the games have been exclusive on X360. How can they make money off a console you have NO GAMES on lol? It's amazing this guy still has a job.

Well, in theory their sales could go down, but they're kind of rock bottom already.

[AikonEnt]

Surely Squenix must have made some money with the release of Final Fantasy VII on PSN?

[BluOgre]

Originally Posted by Septimus Prime

Well, in theory their sales could go down, but they're kind of rock bottom already.

I was assuming he was talking about rev from the PS3. It's like asking a guy what his chances are winning the lottery without buying a ticket. so how can they see an increase in rev with more PS3 hardware being sold if they don't have any games to sale to those people (specially since they can't even make PS2 money without BC being removed).

Of course one could guess that he was hinting that the PS3 launch of FF13 in Japan would be delayed till next year (because of obviously you are going to see more sales of FF13 with a PS3 price cut). If that happens SE as a company are morons.......first they say they will finish the PS3 FF13 first and then port and now I hear they have been working on the X360 version for a while now.

SE deserves to be eatten up EA or Activision. Even those companies run better than this.

[Septimus Prime]

Originally Posted by BluOgre

I was assuming he was talking about rev from the PS3. It's like asking a guy what his chances are winning the lottery without buying a ticket. so how can they see an increase in rev with more PS3 hardware being sold if they don't have any games to sale to those people (specially since they can't even make PS2 money without BC being removed).

It's not exactly the same because, in the lottery, the numbers other people pick don't affect your probability of winning at all.

On the other hand, new interest in PS3 and spiking sales could drive down interest and sales of the other console, in which Wada is probably heavily invested. Depressed sales of the console could lead to depressed sales of its games.