Square Enix is apparently undergoing a major restructuring. The company announced yesterday that it is experiencing slow sales which has caused a fall in expected revenue. The slow sales of big console titles in North America and Europe has caused this development, also the company’s arcade machine business is also going at a slow pace.
According to VentureBeat, several sources have confirmed that Square Enix has sold off many of its free to play titles to developer Sleepy Giant.
Sleepy giant has recently revealed that it raised $100 million from TPG Capital, a private equity firm formed by a joint venture between financiers David Bonderman and James Coulter and the Evolution Media Capital. While Square Enix has refused to comment, the news has been confirmed by sources familiar with the matter.
By the end of March, Square Enix expects a loss of $105 million, including costs from disposal of content, evaluation of content and other losses.