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Square Enix reports £42m loss [Update]

Disappointing first-half results due to below-par sales of a "major HD game"

Final Fantasy publisher Square Enix has told investors it may announce a loss of about £42 million when it reports on trading for the first half of its financial year.

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[Update: Square Enix on Tuesday reported a net loss of £42,730,000]

The group forecasts sales of about £475 million (it's currently tracking £450m), but it expects to report a significant loss when factoring in operating expenses, softness in HD game sales and punishing exchange rates.

As well as a weakened arcade business in Japan, Square Enix admits that "sales of a major HD game title have been growing at a slower pace than expected".

[Update: Square Enix on Tuesday said Sleeping Dogs shipped 1,510,000 copies in the six months ended September 30.]

Though the company did not specify which game, its biggest release this year was the new IP Sleeping Dogs, a title which stood atop the UK charts for a number of weeks and, during August, was the best-selling game in the US with 172,000 copies shifted.

Square Enix expects its full year profit to come in at about £27 million.

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