Square Enix announced today(Opens in a new window) that president and representative director Yoichi Wada will step down in June.

The move comes as Square Enix is expected “to incur extraordinary loss” in the fiscal year ending this month.

That loss includes about ¥10 billion ($106 million), pulling the company’s predicted net income losses from ¥3.5 billion ($37 million) to a whopping ¥13 billion ($140 million), thanks to poor Western and digital sales of games like Sleeping Dogs, Final Fantasy XIII-2, and Hitman: Absolution. Not to mention a floundering arcade machine business.

“In addition to these factors,” Square Enix’s consolidated results forecast said(Opens in a new window), “the company expects to incur extraordinary loss about loss from restructuring in the settlement of the account for its fiscal year ending March 31.”

Wada joined Square in April 2000, and worked his way up to CEO by December of the same year. When his company merged with Enix in 2003, he acquired his current title. Starting next month, Wada will take a 60 percent pay cut for the remainder of his time with the company, to make up for its poor performance, though Square Enix did not elaborate on what his role will be going forward.

Yosuke Matsuda, representative director and 12-year Square Enix employee, will take over Wada’s position this summer.

Square Enix’s news comes days after Electronic Arts’s CEO John Riccitiello announced his resignation, effective March 30. EA faced public criticism over the release of SimCity, which was marred by server troubles, leaving masses of players without access.

Riccitiello’s personal statement didn’t mention the game snafu, but instead said he thought it was “the right time for me [to] pass the baton and let new leadership take the company into its next phase of innovation and growth.”

For more, see PCMag’s DRM, DLC, and Disrespect: What Square Enix and EA Are Doing Wrong.

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