The announcement from the company (PDF) says that sales "substantially fell below" their initial predictions. They say that this is "due to slow sales of major console game titles in North America and European markets."
Titles such as Sleeping Dogs, Hitman Absolution, and even Tomb Raider fell below projected sales figures, despite receiving critical praise. Sleeping Dogs is predicted to sell 1.75 million units by the end of the month, Hitman Absolution is predicted to sell 3.6 million units, and Tomb Raider is predicted to sell 3.4 million units.
Honestly, it's a shame because Sleeping Dogs should be played by more players, as should the latest Tomb Raider. They're both absolutely phenomenal titles.
"In view of the rapidly changing environment of the game businesses, the Company has decided to implement major reforms and restructuring in its development policy, organizational structure, some business models, and others."
This restructuring will cost Square Enix roughly $105 million, which accounts for a bulk of the projected $138 million loss for the year. Also of note, Yoichi Wada has stepped down as the President of Square Enix. A replacement has not yet been selected.
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