4Kids Entertainment announced that it posted net losses of US$19.6 million over the last three months of 2008, after having lost US$16.8 million in the same period the previous year. As the loss came, net revenues dropped to US$14.3 million, contributing to an overall increase in 4Kids' total losses for the year.

4Kids' 2007 losses totaled US$23.3 million, which increased to US$36.8 million in 2008.

4Kids chairman and CEO Alfred R. Kahn expressed disappointment at the numbers, blaming the mounting losses on "the sharp economic downturn and associated severe deterioration of consumer confidence starting in September 2008," in addition to "declining licensing revenue." He noted that 4Kids overestimated the potential success of their newly-launched Chaotic collectible card game, which only amounted to US$500,000 in sales in 4th quarter 2008 - far below expectations.

All this comes in contrast to a statement Kahn made in November, in which he expressed hope in the company's ability to achieve profitability by the end of the fiscal year based on increasing sales and licensing revenues.