Support studio Tose suffers multiple financial losses after canceling projects

Tosea Japanese developer that helped major studios develop their games, posted consistent losses in the third quarter of fiscal 2023-2024.

In his recent earnings report spotted by AutomatonThe studio’s net sales were 3.243 billion yen (US$20.1 million), down 27.6 percent from a year earlier. Overall losses amounted to 367 million yen for the nine-month period.

Project cancellations and delays are to blame

As translated in his reportTose blames the situation on several projects canceled by clients he did not disclose. Some had been in development since the beginning of the 2023-2024 year, and their budget cuts have resulted in “a significant loss” of revenue.

Tose was also blamed for the postponement of ongoing projects to 2024-25, which is why it lowered its forecast from 5.520 billion yen to 4.830 billion yen for the rest of the fiscal year.

Tose didn’t mention any specific projects, but it’s worth noting that over the decades he’s worked with both Nintendo and Square Enix. The 44-year-old developer co-developed Crisis Core: Final Fantasy VII Reunion, Scarlet Nexus, and more.

In CanSquare Enix has said it will cancel several projects and be more selective about its production to improve quality (and sales). Given the relationship between the two companies, some (or all) of Tose’s difficulties could stem from these abandoned games.

Amid these losses, Tose said it would “thoroughly strengthen and implement project management rules, and we will gradually launch currently planned projects and restore our business performance.”