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.
[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.