Square Enix CEO Yoichi Wada Steps Down Due To Financial Troubles

Just several days after Electronic Arts CEO John Riccitiello resigned, Square Enix CEO Yoichi Wada is also making the move. Square Enix announced today that Wada will be stepping down due to "a management reorganization." However, the company also noted that they're expecting a big loss in its next financial statement.

Wada has been the CEO of Square Enix for over 12 years, starting the role in 2000, but he'll be officially stepping down in June, and will receive a 60% pay cut starting next month due to the company's poor performance. Yousuke Matsuda, who joined the company in 2001, will take over as CEO. It's not yet said if Wada will take on a new role at Square Enix, nor if Matsuda is just a temporary replacement.

The company's expected net sales were reduced overall, and they now expect net income to fall from 3.5 billion yen ($37 million) to 13 billion yen ($138 million). Square Enix has blamed its poor performance on "slow sales of major console game titles in North American and European markets." The company recently released Sleeping Dogs, Final Fantasy XIII-2, and Hitman: Absolution, which apparently aren't doing so hot.

While Wada is receiving a 60% pay cut, Matsuda will also be receiving a pay cut, but only 40%. It seems that the publisher has a long road ahead of itself, and if the newly-appointed CEO is getting a huge pay cut, that can only mean that other employees will be getting pay cuts as well, and it could possibly lead to lay offs at some point.

[via The Next Web]