Yoichi Wada, President and CEO of Square Enix, has resigned according to a press release made available today. The announcement comes on the back of major revisions to Square Enix's yearly financial forecast, a shift from ¥3.5 billion in profit to almost ¥13 billion in losses (just over $130 million). Citing "sluggish" sales in western market and a "rapidly changing environment" Yoichi Wada appears to have taken the fall for his company's losses.
If you're curious what's being implied by the "rapidly changing business market" it may be forthwith to mention that Square Enix has sold a number of its free-to-play title, including a rumored four unannounced games. GamesBeat says that startup Sleepy Giant has acquired the in-development properties. Perhaps Square Enix is didn't find the free-to-play business as profitable as other publishers.
Yoichi Wada joined Square Enix in 2000 as Chief Financial Officer, eventually being promoted to CEO later that year (must have showed a lot of spirit). He was anti-piracy and a proponent for wide-spread digital distribution, which has helped Square Enix build a stronger following on PCs.
In the mean time, Yoichi Wada will be replaced by fellow representative director Yosuke Matsuda and a shift in the company's board of directors. The changing leadership shall be confirmed at Square Enix's July shareholder meeting, which will be followed by a resolution by the board. The short term consequences of this decision, beyond the free-to-play title sales and promise of a "restructure," are unclear.