Square posts first-ever losses, begins reorganization

[02.08.01] » A change in profitability brings a change in structure and three corporate demotions.

    After losing money for the first time in company history, three Square executives have resigned to take lower positions within the company. Video Senki has translated a Bloomberg Japan report that 2001 will see Square announcing red ink after the first quarter ends in March. Development costs for both PlayOnline and Final Fantasy: The Spirits Within are most likely to blame for the financial downturn.

    In a response traditional for Japanese businesses, three Square executives have submitted letters of resignation and taken lower positions as penance. President Tomoyuki Takechi will now be a contractual consultant, CEO Masahi Hiramatsu will drop to executive director, and Final Fantasy creator Hironobu Sakaguchi will change from the corporate vice president to a game-centered title of executive producer.

    The company will also be changing from a president, vice president, and CEO structure to having a president, CEO, and CFO. No one has been named as possible replacements.