Canceled Games Cost Square Enix $55 Million

By Spencer . May 12, 2011 . 2:36am

gunlocoSquare Enix reported extraordinary losses for the past fiscal year totaling 16 billion yen ($197 million). 4.5 billion yen ($55 million) of that sum is attributed to canceled games. The company says they are tightening the "selection standard" for their video game lineup moving forward.

 

Gun Loco, an Xbox 360 shooter developed by AQ Interactive, was canceled in March. Siliconera exclusively revealed Project Dropship, an unannounced game from their Los Angeles studio, which was also canceled. Project Dropship was in development for PlayStation Network and Xbox Live Arcade.

 

Upcoming Square Enix titles include Deus Ex: Human Revolution, Tomb Raider, Hitman: Absolution, a 3DS game in the Rocket Slime series, Dragon Quest Anniversary Collection, Final Fantasy Type-0, and Final Fantasy XIII-2.


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  • urbanscholar

    Its definitely bad when you cancel games all that loss with no recupping. I doubt we will get. Type-0 is the west now. Also you have to wonder about vs 13. The logical thing is to go multiplatform. However if they haven’t already done that will further $$$ going into development even be worth it? Wada said himself they take too long with big hits. I wish them the best

    • landlock

      Come now, Type-0 will be released in the west without a doubt.

      • urbanscholar

        After today’s articles, I’m going to have to seriously doubt that. PSP games don’t do well in the West. Also with NGP coming around, PSP is all but done here. Just my honest opinion

        • Guest

          Please, Chicken Little, it’s not that bad yet.

          • landlock

            They took the time to release games like Tactics Orge and even did limited editions for Europe. I would bet that Type-0 will make it 100%.

            DQX I would be more worried about by the time it’s finally released in Japan it’s gonna be pretty damn late in the Wii’s life with the Wii 2 arriving in 2012.

          • Guest

            They could pull a Zelda TP (was released for GC & Wii)

        • http://twitter.com/mangeezer jerry

          PSP games in the west might get a boost with NGP if they’re available on PSN and enhanced dual-analog control

          • doomspeller10

            Yep you’re right. I’d really like to play Dissidia or GoW with a 2nd analog.

    • http://twitter.com/mangeezer jerry

      Yeah, can’t see the game staying PS3 exclusive unless Sony is paying for it like MS does for Gears. These days the market is so fragmented with no clear “platform leader” that they should consider going multiplatform with everything – DQX included

      • http://tristsantithesis.tumblr.com/ Tsunayoshi Sawada

        If money is an issue then it cost less to not go multiplatform than to risk it, especially with long development time, unless a previous games success is used to fund it or there are some sort of under the table deals going on, or just dislike of the platform.

        • http://twitter.com/mangeezer jerry

          For niche titles where the overall userbase isn’t huge no matter how you slice it, sure, makes sense. But for Final Fantasy? Even if the PS3 version carries 75% of the sales you’re still making a significant profit on the 360 just because the overall userbase is so massive. Would probably be the same story for Dragon Quest X if they launched it as a Wii-PS3-PSP game which would cover two different home console demographics as well as the largest portable demographic instead of just taking a gamble on a single large but dying demographic

          • http://tristsantithesis.tumblr.com/ Tsunayoshi Sawada

            Profit, then youre ignoring how much it costs to go to the other systems and not to mention spending time cutting content, modifying it, etc. If they budgeted the development wise, then they can make significant profit on just one system…

          • http://twitter.com/mangeezer jerry

            That’s just like saying they should have kept Monster Hunter 3 as a Wii exclusive just because they made a significant amount on the Wii release. Games that make a significant amount can always make significantly more – that’s the nature of high-profile, high selling games. 

    • doomspeller10

      If I remember well, this was one of those games in which they are trying to appeal to western gamers. And they have received generally favourable reviews on their PSP games, so I think type-0 could be delayed in the west at worst.

  • http://tristsantithesis.tumblr.com/ Tsunayoshi Sawada

    Wow, they should have paced out those cancellations.

    • urbanscholar

      The best business practice would’ve been this. Not to green light those
      games at all given their uncertainty. Millions would’ve been saved.

  • https://twitter.com/#!/SplashdownTiger STiger

    They should have finished Gun Loco, BECAUSE PEOPLE WERE ACTUALLY INTERESTED.

    • http://twitter.com/#!/kaishou Kaishou

      Really? are you sure?

      • https://twitter.com/#!/SplashdownTiger STiger

        I knew of at least 5 people that were interested. And they were the kinds of people that play COD.

        • puchinri

          Play COD exclusively? Or just play it? Because there are people who enjoy COD and titles like Cooking Mama.

      • http://twitter.com/mangeezer jerry

        I was interested. Am I people?

        Either way, cancelling games so late in development is hugely inefficient, definitely no way to run a business. If they were so concerned about the profitability they should have made it a DD game.

  • http://www.facebook.com/profile.php?id=1595144264 Dennis Chen

    Still nothing on The Last Remnant (PS3)?

    • http://www.siliconera.com Spencer

      With no word on it for years, I’d say it’s canceled.

      • http://www.facebook.com/profile.php?id=1595144264 Dennis Chen

        Until they officially say it’s cancelled… I’ll still hold on to hope
        Or until I get an awesome computer to run the PC version at minimum settings, which I doubt I will

        • Guest

          lol you don’t need an “Awesome computer” to run that game at minimum settings

    • http://tristsantithesis.tumblr.com/ Tsunayoshi Sawada

      I thought the removal of its listings from retailers databases of yesteryears indicated it was cancelled?

    • http://chronotwist.deviantart.com/ JustThisOne

      I was super psyched for that game, and I’m still waiting. ;__;

  • http://tristsantithesis.tumblr.com/ Tsunayoshi Sawada

    Well at this rate Square Enix is going to lose its placement as a
    worldwide publisher to Namco Bandai, if it hasnt happened already.’

    I just know one thing, I hope they aim to announce another Kingdom
    Hearts at E3, pledge NGP development support, and definitively get
    Versus XIII out by the end of next fy. Hopefully eidos works out for
    them.

    • urbanscholar

      They’ll most likely show video of their 3DS KH game and not mention KH3 whatsoever.

      • http://tristsantithesis.tumblr.com/ Tsunayoshi Sawada

        At least I hope they give a KH on NGP. (oh and Kingdom Hearts HD Collection)

        • urbanscholar

          Makes the most sense now cost wise.

      • Guest

        I don’t understand how people somehow assume Nomura has time to even think about KH3 when he’s working on Versus and the other spin offs.

    • PurpleDoom

      They were on the list of developers supporting the NGP when the system was announced, and even if no such list existed it would be a very safe bet to say they will. I doubt they’re going to keep losing money at this rate, too.

    • puchinri

      That’s a kind of ironic placement to be considered for Namco Bandai (just kind of ironic though).

      • http://tristsantithesis.tumblr.com/ Tsunayoshi Sawada

        Its probably one of the only quotes I remember from Namco Bandai, that they want to be a top 5 publisher worldwide.

        • puchinri

          They just get funnier and funnier.

  • http://pulse.yahoo.com/_S2UKKIGGOA4V5EIFXAD7BQQOV4 Heehee

    Okay. I thought they only lost $55. I didn’t saw the Million there. (LOL)

  • mikanko

    Hopefully this “selection standard” will mean no more shallow western outsourced 3rd person shooters with the Front Mission moniker.

  • Aiddon

    well, there goes Vs XIII’s exclusivity.

  • Pichi

    So much for the little games like any Chocobo games.

  • http://www.youtube.com/B4ULoveShine Tim_at_where

    At the very least, Square Enix should’ve sold cancelled IPs, to get back some of the R&D they spent on the cancelled games.

    If I remembered it correctly, Capcom sold a cancelled game to Rockstar Games, which the latter retooled into Red Dead Revolver.

    • http://twitter.com/Zufield Zufield

      But that’s implying that Red Dead Revolver wasn’t already Red Dead Revolver in Capcom’s hands anyway.

      • http://www.youtube.com/B4ULoveShine Tim_at_where

        Hm, I must’ve missed the fact Capcom sold Red Read Revolver to Rockstar wholesale earlier.

  • http://www.facebook.com/brandon.regueiro Brandon Regueiro

    if that fortress project is cancelled i’m bummed, been hoping to see more about that project for a while.

  • PrinceHeir

    hopefully the upcoming games aren’t affected.

    no worries XIII-2 and Versus XIII will make them more money and especially Dragon Quest Xif they could make a enhanced version of FFV and FFVI, expect a sale for me :P

    • godmars

      Yeah, just have to worry if they’re good or not. If Wada’s compromised then in some form or another.

  • Exand

    And a good chunk of the rest of the 11.5 billion is from losses incurred while trying to fix FFXIV?

  • [The Hunter] Doomrider

    Versus canceled, finally Nomura can move on to other projects.

    It’s time for that NGP KH spin-off.

    • doomspeller10

      KH RE:3.14/Birth by Drop Distance coded? No thanks. I’d really prefer versus or KH 3, though I know the NGP spinoff will happen anyway.

      • [The Hunter] Doomrider

        Hm, sir. You forgot the “+”.

        KH RE:3.14/Birth by Drop Distance coded + (PLUS). That’s better.

        • MarkMario

          Orly?

          KH RE:3.14/Birth by Drop Distance Coded + Final Mix

          • [The Hunter] Doomrider

            Ya rly.

            KH RE:3.14/Birth by Drop Distance Coded + Final Mix Ultimania

            How do you like THAT.

    • http://www.facebook.com/people/Agino-Terra-Terra/100000005990054 Agino Terra Terra

      FF Vs 13 was canceled??? i this some kind joke if it true i lost my respect from square-enix

      • http://www.siliconera.com Spencer

        I believe the above post is a joke because Final Fantasy Versus XIII has not been announced as a canceled game.

      • [The Hunter] Doomrider

        Man, I really gotta warn people when I’m joking =(

        Sorry! As Spencer said, I was kidding.

    • http://twitter.com/Megawarrior345 Elle

       Yes please. Kingdom Hearts: Show Stop Sequence!

    • Guest

      It is highly dubious that Versus will be canceled due to their strong fan support for the game; as for the KH series, perhaps SQEX should try something new like KH but replace Disney with Studio Ghibli, that would solve their economic problems.

  • http://varms.net Gillman

    Square is getting a nasty habit of letting games sit too long in development and eating up too much money. They have yet to turn a profit of FF14, or even charge a monthly fee, and FF13 took a stupid amount of time to come out and was middling at best. Granted last year they did a ton of expansion and this year they have other interesting things coming out, Dungeon Siege 3 next month, but it still seems odd that they are so interested in pushing graphics that they have forgotten about anything that used to make their games great.

  • doomspeller10

    55 million loss for cancelled games? I smell a bunch of FF remakes on their way… and perhaps a movie. JUST REMAKE VI ALREADY!

    • puchinri

      This 100%.
      (I would say IX remake too, but I’m not entirely sure I want that.)

      • http://modorenai.livejournal.com/ modorenai

        Beatrix in HD, probably? :D

        • puchinri

          Oh, that would be so worth it. ;u;

  • kroufonz

    hope VP3 is not one of those canned game

  • http://pulse.yahoo.com/_QQS3VDEDG5D26QJWLHKM2E3FUY gama

    Final Fantasy VI is beaining to be like VII with these new peeps >.<

  • http://twitter.com/Megawarrior345 Elle

    No sympathy.

    :)

  • HalcyonFive

    bring back dropship!

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