Square Enix Detail Where Their Losses Are Coming From

By Ishaan . April 8, 2013 . 12:10pm

In a recent financial briefing, former Square Enix president Yoichi Wada discussed how Square Enix arrived at their sales forecasts for some of the biggest games they’ve released over the last 12 months. The three titles in question are: Sleeping Dogs, Hitman Absolution and Tomb Raider.

 

As previously reported, despite high sales, all three games sold below expectations in North America and Europe. Wada shares:

 

“Let’s talk about Sleeping Dogs: we were looking at selling roughly 2~2.5 million units in the EUR/NA market based on its game content, genre and Metacritic scores. In the same way, game quality and Metacritic scores led us to believe that Hitman had potential to sell 4.5~5 million units and 5~6 million units for Tomb Raider in EUR/NA and Japanese markets combined.

 

“Of course, we want to hedge risk in budgeting these units directly into the forecast, therefore we base the forecast on 80-90% of the total sales potential of each title. However, it is disappointing that our results fell below these marks.”

 

For reference, Sleeping Dogs has moved 1.75 million copies, Hitman Absolution 3.6 million and Tomb Raider 3.4 million.

 

Wada says that Square Enix’s revenue model is outdated and that the company’s selling capacity has been “far weaker than we ever imagined” in North America and Europe. As a result, Square Enix are incurring an extraordinary loss in an “effort to sort out items not achieving expected revenue levels, through scrapping those items and terminating production”.

 

Some of the content being scrapped was in development at studios in Japan. A loss of more than 2 billion yen originates from Japanese studios, where certain productions have already been halted and work scrapped. Additionally, Square Enix say that they recently launched a new division in the U.S. to develop casual games for phones, but were forced to close it down after things didn’t go well. The company expects a 1 billion yen loss as a result of its closure. Total losses resulting from this “Loss on Disposal of Content” at Square Enix amount to 4 billion yen.

 

A further loss of 3.5 billion yen is expected from “Loss on Evaluation of Content,” where Square will make downward revisions to their prospective yields for every game title and overhaul their business models. A 2 billion yen loss in this regard will come from Japan and 1.5 billion yen from Europe and North America.

 

Additionally, a company-wide loss of 2 billion yen is expected in relation to re-structuring Square Enix. In total, all of these losses amount to 10 billion yen.

 

While console game sales were sluggish, social games are showing “solid performance,” Wada says, with continuous growth in net sales. Square expect net sales from their Social Gaming and Others category to reach 20 billion yen in fiscal year 2013. Profit margins continue to improve steadily and Square say that their social game development teams exchange expertise with each other on a daily basis. Over the next year, Square plan to focus on providing social games to China and Korea, and gradually expand to the entire Asian region.

 

In the wake of the company’s losses, Wada will be stepping down as Square’s president. As previously reported, Yosuke Matsuda will be replacing Yoichi Wada as Square Enix’s new president.

 


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  • http://www.facebook.com/magius.necros Magius Necros

    I think instead of saying what is perceived to not have gone well, there should be an evaluation on the “why” it hasn’t done well. At the very least, Square has acknowledged there is a problem, which is a step in the right direction, regardless of how long it took them to figure this out.

    • Lexaus_the_Alchemist

      Acknowledgement/Acceptance – the first step in the road to recovery.

  • popo123

    So they expected Tomb Raider to sell 5-6 million in less than a month? Even Uncharted can’t sell 5 million in 1 year. Talk about unrealistic.

    • KuchikiSentou

      Shallow comparison. All those games referenced are multiplatform. Sony is notorious for poor marketing of first party titles.

      • Aaronrules380

        No Tomb raider has ever reached those types of sales. Not even close. The New one sold vastly more than the last few. It did better than anyone coud have reasonably expected, it’s just Square had Super unreasonable expectatioms. And if 3.4 million sales is too weak, there’s obviously a problem. A

        • KuchikiSentou

          That is true about the previous titles. I think that their expectations were not unreasonable however.
          Tomb Raider is by no means a niche franchise, and it had no direct competitors around the time of release. They even put in multiplayer; which on an average game guarantees an extra quarter to half a million these days. Square would have expected an extra million.
          I think these expectations are well founded. Tomb Raider is actually one of the “big” releases of 2013. Those numbers are not indicative of the kind of expectation it had prior and its critical reception.
          Most definitely.

          • MonsieurEek

            “They even put in multiplayer; which on an average game guarantees an
            extra quarter to half a million these days. Square would have expected
            an extra million.”

            What are you talking about? Do you have anything to back up this assertion? Extraordinary claims and all that.

          • KuchikiSentou

            I’m talking about the fact that mulitplayer guarantees an increase in the number of sales. However big or small. Not extraordinary. The creative director for Spec Ops: The Line said that 2KGames [hired a separate company] for the multiplayer (which was not part of the original) just to fulfill those numbers-based objectives.

          • idrawrobots

            who’s buying Tomb Raider for the multiplayer?

          • KuchikiSentou

            “Why put it there?”
            Most people who are fans of the series, ardent or otherwise, may not bother, but it is there and it is ample evidence of their intention for the game to sell within those expectations.

          • MonsieurEek

            Sorry if I was rude, but stating baldly that it was reasonable for Square to expect an additional million sales because of a multiplayer mode for a game for which practically the entirety of the marketing and the legacy of the series was rooted in single playerjust seemed absurd. You say however big or small in your last post, but you specifically cited 1 million which which is more than a full quarter of the game’s sales for a mode which was almost never publicized.

            As you alluded to, publishers see multiplayer as important for big budget franchise games, but I think in many cases – like when the mode isn’t even advertised – it has more to do with retention than direct sales upfront.

          • KuchikiSentou

            I think that the mere fact that is there; is what would lead to that assumption. There is no other reason to add multiplayer to a franchise that generally isn’t multiplayer. With the expectations as high as they were, multiplayer has to be a factor in SquarEnix’ considerations. They can’t expect a full-fledged multiplayer experience to have an effect of a mere quarter million; THAT is absurd, to my mind. Multiplayer may not have been advertised, but it was there and gamers knew that it was there before the game came out.

            Multiplayer has never dampened the sales of any game; it actually can’t. I said big or small because there is no way of determining how much a game would sell if it didn’t have multiplayer as opposed to having it. It can be said that if Mass Effect 3 didn’t have multiplayer, it would not have sold as much as it did; or any game for that matter. It’s the reality of today’s gamingscape and one of the factors to be considered when committing resources to an online infrastructure certainly.

          • Hossi Blumengaarten

            and the game bombed so hard, go look at the sales, has not even broken half a million on any platform

          • Aaronrules380

            The game set a franchise record. Frankly, that the game managed to sell as well as it did is nothing short of amazing, and shows the effort the team put into it. Getting a 3.5-4.5 million sales boost (which is what Square expected) between franchises entries isn’t unheard of, but it’s extremely uncommon and not something someone should ever bet on. Especially not with a franchise whose popularity had been in decline

        • $36598391

          I don’t even see why Square Enix touched Tomb Raider anyway it’s not their series to begin with, It’s Eidos’

          • $1484028

            because Square-Enix bought Eidos 4 years ago…?

      • sandra10

        They’re only notorious to people who think they should give a big advertising campaign to every game they make. They push the games they think will do well which is why Ascension got a Super Bowl Commercial ($4 million for one 30 sec commercial) and The Last of Us got a commercial during an episode of The Walking Dead which can’t be cheap given the show’s popularity.

        • KuchikiSentou

          I think you’re looking more at the exceptions. Little Big Planet Karting; StarHawk; [even] AllStars; Twisted Metal; I can go into each of these games in detail, but for time’s sake will stick to what they have in common: none of them have passed 1million. These are 2012 games. Fingers have to be pointed somewhere.
          I’m not saying all the games should get God of War level of promotion, I just think that Uncharted should be doing better, given PS3′s install base.

          If they had more money they would put more time into marketing these games certainly. But the fact that it is less than standard cannot be rebutted. They have so many hence it is unrealistic for each one to get a certain level of attention.

          • sandra10

            Like I said, Sony backs the games they think will do. And those games are typically big budget. graphics driven “blockbusters”, i.e. not Starhawk, All Stars, etc. And I’m not sure why you think Uncharted should be selling better given it sells better than most PS3 games and UC 2 did as well as GoW 3.

          • KuchikiSentou

            KillZone 2 [best looking PS3 shooter; easily] has one of the biggest [best documented] budgets in this generation’s history. Still hasn’t crossed the 3 million mark. Neither has KillZone 3.
            We call these games “big budget” but usually we don’t know exactly how much has been sunk into development and marketing. Just the ones that make a bang [MW2, GTA4], or the ones that leak.

            Sometimes we just call it based on its appearance. But note that AllStars was in development for almost 4 years. Money was certainly spent to get all those 3rd party IPs. That has to be a lot of money. The studio that made StarHawk (by no means a “small” game) was closed; only practical consideration is that the game they made did not do as well as they expected it to. Hence the vicious cycle completes.

            Out of all Sony’s myriad exclusives; the only ones worthy of mention sales-wise are Uncharted, God of War and Gran Turismo. Whereas there are other “big budget” titles such as Infamous, the aforementioned KillZone, Resistance, even LittleBigPlanet (which should see a lot of money spent through licensing etc.). There are (should be) others..

            I don’t think it is sufficient.

    • Solomon_Kano

      Not the best comparison. No matter how big Uncharted might be, it’s still an exclusive. Tomb Raider’s a long-standing series with good name recognition and they got a lot of good press from it, so it’s not unthinkable for them to expect it to be capable of that across three platforms. They certainly overestimated how quickly it would happen, but their thinking wasn’t too out there.

      • Aaronrules380

        Tomb Raider had been in decline for years and had never sold that well, so no, it was incredibly unreasonable.

        • Wesley Kenneth Houpt Mattingly

          Its not that its unrealistic, its that the amount of money that went into the game, was probably barely met. SE has been in the hole ever since FF13 failed to do as well as hoped. It cost and estimated 1.6 billion to make the game, and respectively sold 8 million or so copies which puts them at $480M. While that is no small number, it pails to the cost. Which most of the cost comes from those beautiful 1080P CG movies that 13 had hours of, and 13-2 had only minutes. So really, we can blame 13 for everything, not just the 3 mentioned above.

          • saxophone15

            Where are you getting the development cost from? Do you mean 1.6 billion dollars or yen? If you meant 1.6 billion yen, they did make their money back (though I’m sure that’s not the development cost). If you meant 1.6 billion dollars….that’s just absurd. There is no way it cost that much to make. That would make it the most expensive game ever created (8 times more expensive than the currently known most expensive game “The Old Republic”) and even more expensive than the most cg heavy movies like Avatar.

            Final Fantasy XIII did not have hours of CG cutscenes. All of the CG cutscenes in FFXIII amounted to less than one hour. All of the other cutscenes were in-game or modified in-game cutscenes.

            EDIT: minor correction (changed “9 times” to “8 times”)

          • Ehren Rivers

            I responded to them as well, if you’d like to take a look. Sadly, many people seem to be misinformed as to both the development cost/profit margin of the games AND their popularity. (Final Fantasy XIII’s original audience was about 50/50 on love/hate, and received positive reviews except in the area of its linearity.) It’s not uncommon to find this kind of hyperbolic argument across gaming news websites though, as people who disliked the game generally don’t bother to get their information straight and have no qualms greatly exaggerating the game’s shortcomings. (Which, like any game, it does have)

          • Ehren Rivers

            Actually, Final Fantasy XIII did very well. It was the fastest-selling Final Fantasy so far when released, and its lifetime sales as of the beginning of this year puts it at just over half the lifetime sales of Final Fantasy VII, Square Enix’s highest-selling Final Fantasy game. The only games that have outsold XIII are VII, X, and VIII (in order from highest to lowest margin).

            While the exact numbers of the budget of Final Fantasy XIII has not ever been, as far as I’ve found in my research, revealed to the public it is supposed to be approximately 50% higher than the budget of Final Fantasy XII (around $40 million USD). If we were to double that budget to $80 million, that translates out to about 7.9 billion Yen. Even if we were to double THAT budget, we’d still be sitting at way lower than the figure you’re claiming.

            For the record, the current total sales number (worldwide and counting both platforms) of Final Fantasy XIII is 6.89 million copies. Furthermore, Square Enix had actually been posting profit until the last (April 1st 2012-March 31st 2013) financial year INCLUDING the financial quarter in which Final Fantasy XIII-2 was released in the US. Despite only selling 2.94 million physical copies (Sony doesn’t like releasing digital sales numbers apparently) compared to its predecessor (meaning 42% of people who bought XIII new bought XIII-2 new), the game was quite successful due to a lower, more efficient production budget.

          • Wesley Kenneth Houpt Mattingly

            For arguments sake, lets say it was 6.89M sold, that makes it 413M they made, not taking into account that in Japan 13 did not cost $60 like it did in the US, it cost $80 or more. So that makes 333M in profits for SE, they would be rolling in the dough so to speak if that were the case. They now can afford to make SD, TR, and HA on shear profits from 13.The fact that you have no conceptualization of what a game cost to make is acceptable, since most have no idea at all. But if we go by your logic, than it would be impossible for SE to be in trouble given that it made at an average of $60 a sale: Sleeping Dogs: 105M, Tomb Raider 204M, Hitman Absolution 216M. Thus again, they would be rolling in the dough, and not be hurting for money if games cost what you ignorantly say they should, lol!

          • SiliconNooB

            You do talk some nonsense!

  • http://www.facebook.com/jessica.ogaby Jessica Ogaby

    I think Square-Enix based their sales for NA/EU like they do for Japan causing them to have high expectation. In Japan they based their sales on first few weeks. In US/EU people don’t really buy right away for those types of games.

    • http://s1.zetaboards.com/Espada_of_Alexandria/index/ konpon568

      Exactly. Many people I know have the philosophy of waiting until an item has a lower price than it’s initial value. Which usually takes 2-6 months until a title actually gets a price drop.

      • d19xx

        They need to pull a Nintendo and market they games all year long and not leaving them high and dry after the release.

  • CudaBiro

    The thing about it, those are actually decent sales for this generation.

    It’s good that he acknowledges that their revenue model is outdated. Maybe that’s why they thought they could keep FF Versus XIII in development for the entire length of a console cycle.

  • Ethan_Twain

    So games have been cancelled. What games do we know are in production over there right now? There’s Lightning Returns and FF vs. XIII from the Final Fantasy brand, there was another Hitman game in development in Montreal, FF XIV a Realm Reborn, and there’s that Gyrozetter 3DS game.

    Some games that have been discussed but not given formal announcement are the anonymous Final Fantasy game mentioned at the PS4 event and the TWEWY sequel hinted at in the iOS port of the original.

    Which games are missing from this list, and which games seems most likely (if any) to have been terminated?

    • http://www.siliconera.com/ Ishaan

      FFXIV isn’t going anywhere. Neither is the Final Fantasy game that will be shown at E3. Handheld development, though, is a big question mark in general. Bravely Default and DQVII did very well, but we have to wonder now what Square’s expectations for portable games are. Their handheld announcements this year will say a lot about what games and platforms they feel are viable for their portable output over the next couple of years.

      • Ethan_Twain

        I don’t think they’ll bail on handheld development too hard. Beyond Bravely Default and DQ VII doing real well, I remember reading about Theatrhythm selling out on release (and who knows the money they might have made on the DLC for that thing). Kingdom Hearts 3D probably didn’t hit the numbers they needed it to, but if they’re batting 3/4 then that’s pretty good isn’t it?

        Does the FF X HD compilation offer cross-buy? And if so, is that something that might change now that Square-Enix is really not in a position to be offering two ports for the price of one?

        • http://www.siliconera.com/ Ishaan

          FFX HD isn’t Cross-Buy, no, and I doubt it ever will be.

          I was wondering about handheld support more because I’m not sure how Square view their portable business. In my eyes, it’s a good thing, since a number of these games can be ported to platforms like iOS in the future, while others like DQVII are immensely successful right off the bat.

          However, that doesn’t speak to what Square themselves think, since we haven’t seen them announce any further 3DS support after DQVII. We know Gyrozetter is around the corner, that Bravely Default 2 might be in the works and we know that TWEWY2 might happen eventually, but outside of that, no official announcements have been made. There’s been no major portable Final Fantasy game on 3DS either, which is a little baffling, since they’ve done very well in the past and are global sellers, too.

          Like you, I don’t think they’ll “bail” on portable support. They have every reason to develop 3DS games, especially those that can later be ported to iOS for further revenue. However, these announcements have been coming a little slower than one would expect.

          • Ethan_Twain

            Is there a chance that the lack of announcements is less a symptom of their lack of faith in handheld platforms, and more a symptom of the general lack of output from the Japanese branch period? The rate they ship games out at seems to have declined sharply of late – which I assume is a large part of why this management change is going through.

            I mean, what platform(s) HAS Square-Enix been bullish about? The DS and PSP were big for them but since then… not really a lot of support going anywhere at all.

          • http://www.siliconera.com/ Ishaan

            That’s very possible. Like you pointed out, Square’s output in Japan has slowed to a crawl of late. One wonders how many projects have been axed in wake of the FFXIV mess and now these more recent losses.

            That said, I do wonder what their 1st Production Department is up to. At one point, they were capable of juggling multiple projects developed by external studios, like T3B, Dissidia, Crisis Core, Birth by Sleep etc. Aside from the new FF game that will be announced at E3, we’ve heard basically nothing from them.

      • http://www.facebook.com/magius.necros Magius Necros

        Handheld front is strong. I hope they don’t increase expectations though. Like their console front, it can only do so much. Can’t expect to teach an old dog new tricks.

        • http://www.siliconera.com/ Ishaan

          I think handheld front could be stronger than it currently is if they took proper control of it. They were kicking ass back in the DS days. Things started to go downhill sales-wise after that, though.

  • sandra10

    “we were looking at”…

    Who’s “we”, exactly? Because if history has taught us anything, it’s that Japanese publishers don’t have the best grasp of Western audiences and their buying preferences. If anyone should be forecasting these games’ potential sales, it should be Western sales analysts. They’ll still be off because the vast majority of financial forecasts always are.. but they should at least be more realistic if not closer to the actual sales.

    I mean, when you’re expecting a reboot from a franchise that’s been dragged through the mud for years to sell 6 million, you can’t be that informed.

    • Kevin Schwarz

      You are right. There is a shitload of money in Japan it seems, because they buy all their SE games day 1, or so it seems, for this company to think people outside Japan would do so too.

  • WyattEpp

    What, the Final Fantasy XIV fracas didn’t figure in there at all? I’m legitimately surprised to not see that mentioned.

    • Corey Owens

      FFXIV was released in 2010.

      This is focusing on 2012 releases.

      • MonsieurEek

        They’re in the process of essentially relaunching it, now, though. There probably aren’t any losses not already adjusted for in previous years, though, but I do think it figures in big among the reasons their expectations are so big for these other titles; they’re still recovering from their cash cow turning into a cash black hole.

    • http://www.siliconera.com/ Ishaan

      I would imagine the worst of FFXIV is over. They’ve detailed it in numerous previous reports. This year, their MMO losses are coming from the Wii U version of DQX, since they had to record dev costs for it this year.

  • ~Op: FULL THROTTLE~

    We think that listen to what fans really want it’s the way to go for a company, so we ask them to include: Eternal Calm: FFX-2 Prologue and FFX-2 LAST MISSION within FFX|X-2 HD Remaster.

  • ThomasTruong

    Sure, we can talk about your properties that you publish from other developers… but what about your own internal projects like FFXIII Versus and FXIV?

    • Corey Owens

      Read the article. This is about games published in the last 12 months.

      • ThomasTruong

        As far as I recall, Final Fantasy XIV was still actively floundering in the last twelve months and plans to come out again this year with a bang. As games like World of Warcraft and Team Fortress 2 are still worth talking about in the news, why not their most promoted MMO release to date (Or is it still Final Fantasy XI to them)?

        And Versus was supposed to come out in 2009. No wait, I mean 2010. Oops, guess it’s 2011 now. 2012, really? Okay, Versus XIII is 2013 for sure this time.

        Regardless, as this story has been reported from other outlets, the issue is not bound by year or period, and SE’s status goes far beyond what they’ve accomplished in the last year. The main headline is that despite their massive sales, these three games still failed in SE’s eyes. You don’t get a free pass from making many mistakes if you just limit their releases to the past year, or just what THEY decided to report on. This is bigger than that, what I AM talking about is their business structure as a whole. The idea that Tomb Raider moved several million copies but failed by their standards is very telling of the idea that they’re running a double standard on how well their outsourced products can do, but still try to build up hype on false promises and multiple announcements of their own games that don’t exist or got euthanized when SE realized they’ve internally developed some financial monsters.

        Now, I’m not saying that they were hoping the profits from the three games were going to save their own development SNAFUs, or balance it out. That’s a tinfoil hat theory that we don’t have their data for. But blame and disappointment on their part is being spread to other areas, when they should’ve considered the consequences of their actions in their own backyard. And I didn’t even mention Dragon Quest X, which would’ve fit your criteria, if I chose to humor it. Do I not have the right to discuss SE’s transparency if it doesn’t fit your criteria of “staying within the year”? Which is preposterous because the butterfly effect of all their decisions influenced their situation today. No sir, YOU read the article and maybe you’ll see what doesn’t make any sense and what they’re leaving out. One thing I think we can both agree on though is they currently have no idea what they’re doing and quickly need to fix it.

        • Tony F.

          I do not remember any official info about release date, so from where did you get Versus coming out in 2009 (or any date per-se)?

          And I dunno how much info you have about XIV, but SQEX (by the work of Yoshi-P and team) is doing a GREAT work fixing the game.

          • ThomasTruong

            IIRC, Versus was originally announced to be released concurrently with XIII, or shortly after; Along with Agito (which got retooled into Type-0) as a campaign akin to the FFVII media releases. This all became moot after XIII got delayed around the time the 360 port was announced.

            And yes, I’ve also heard that XIV is getting some major improvements. But that still doesn’t change the fact that it died upon release and squandered millions of dollars. Maybe someday in the near future, they’ll make their money back on it. But until it comes out, it is currently a Black Hole of funding. I’m trying not to avoid those two, in a perfect world, I’d like both games to exist and be excellent. I’d come up with a Final Fantasy themed pun to describe it cleverly, but I’m drawing a ‘Blink.’

          • Wesley Kenneth Houpt Mattingly

            Nice pun, lol.
            But seriously this is SE way of letting us down easy on Versus 13. Though I had already chalked it up to vaporware, even when Wada swore that he had “…just left a meeting for it….” A meeting to officially cancel it most likely :(

          • ThomasTruong

            It would certainly be something if it turns out it still exists come E3… as a Mobage/GREE Social Game!

          • KnifeAndFork

            thats great Tony really great….

  • seyEliveD

    I wonder if there were losses associated with the three games mentioned (Tomb Raider, etc) or if these games were expected to pull the weight for other lower performing titles. I just don’t see how they could forecast moving more than 3.4 million units for Tomb Raider … since they appear to be basing shipment on Metacritic scores it almost seems that they came up with those numbers post-release, which doesn’t make sense at all.

  • Anime10121

    “Some of the content being scrapped was in development at studios in
    Japan. A loss of more than 2 billion yen originates from Japanese
    studios, where certain productions have already been halted and work
    scrapped.”

    RU ROH :(

    http://img-cache.cdn.gaiaonline.com/a10c3f073d4222b721f50c6db5ed8e02/http://i169.photobucket.com/albums/u220/chocomouth/NoctisLucisCaelum.jpg

    …Hopefully I can look back on this and say it was a joke and not the actual truth

    • mahrze

      If this comment becomes an omen. You shall be hunted…

      • Anime10121

        Well I think we both are hoping for the best outcome.

  • rainelee

    Looking at it over, their expectations of sales for the three main games were unrealistically high. I’m suprised Hitman even sold that much.

  • Guest

    I think it’s my fault for only buying their games through Steam sales….

  • 1Truth

    Welp, I guess that confirms that FF Versus XIII has now indeed been cancelled. That game was draining their money for 7 years.

  • SirRichard

    This is a very illuminating article, and it’s also a rather worrying one, because it basically confirms that Square Enix (and likely many other publishers) are suffering because they’re expecting far too much and seemingly spending to match.

    5-6 million for Tomb Raider might be feasible in the long run, but it’s considered a failure because it didn’t immediately hit that, despite being an actually quite successful reboot that jump-started the sales figures of a franchise that had steadily been dropping for years. Going from struggling to reach 2 million to hitting 3.5 million in a few weeks is a hell of a turn-around, and that such a turn-around isn’t considered a great success shows that there’s problems not with the market or the game, but with the publisher pushing that game.

    The worrying bit is that they don’t seem to have learned a thing, because instead of talking about adjusting their expectations and being more cautious with development budgets or whatever, they’re simply keeping their high expectations and putting anything that doesn’t reach them to the axe.

    Seriously getting worried about this industry, the way the bigger companies are getting on.

    • M’iau M’iaut

      Here I do think the perceived mass market is to blame. What is ‘expected’ from a AAA release? A line around the corner at every game shop for each and every midnight ‘event’. That looks great in the paper the following morning, when they can announce so many BILLIONS in first night sales, or when some local news does a live broadcast at 11:10pm. Things became a feed upon themselves nightmare where titles having no business getting such treatment got just that.

      Just forget that all those folks were there only because some suit chose to reopen their stores. They would have waited until regular opening on launch day just fine, but no camera crew will be out at 9am to watch a line quietly file in, get their product and leave.

      • SirRichard

        I do think that is a big factor behind it; they seem the likes of Call of Duty doing its thing year after year, and they begin to think that the mythical five million strong audience is just waiting in the wings for their product as long as they pump enough money into it, or something. They begin to expect that any “AAA” game can do extraordinarily well simply because of that “AAA” descriptor, even if their expectations go beyond what the series has actually managed.

    • Kyle Silva

      THQ had a similar strategy. They barely worked on mobile titles for small profit, but usually went for large titles for large profit, or licensing games, which must also ask for some money.

    • http://www.ihasnowebsitez.com Satonaka CP-Four

      The sad and rather silly things is, Most companies are basing their “expected sales” with a COD game as in “So if COD can do it, we can do it too!”

      Seriously, just because one of the most overhyped FPS that has sadly dominated the western market reaches insane amounts of sales shouldn’t be the baseline for another companies expected sales goal.

    • $36598391

      I wish Square Enix would take a step back and give some attention to one of their other series besides Final Fantasy and Dragon Quest
      The Saga, Mana and Front Mission series need a new game that isn’t some crappy social game and not something like Front Mission Evolved

      • AlanWithTea

        Indeed, Square Enix have numerous well respected high quality franchises that they could bring back to the market. They need to diversify more than they do.

      • SiliconNooB

        If I were to make one rule for Square Enix, it would be that none of their projects are allowed to have more than 40 people working on them. It would lead to better, cheaper games.

  • http://twitter.com/0megAgem0 omgy

    The problem, to me, still sounds like their expectations were too high. Those were pretty impressive sales figures, especially for reboots and new IP! Instead of hitting the panic button and cutting talent from their teams, what they SHOULD be doing is capitalizing on the wave of popularity from these new games. Get to work on sequels, minimize costs by re-using some recently created resources while improving the experience from the first games. The sequels will both cost less to make and inevitably sell better due to popularity from the first games and (hopefully) critical approval from their improvements.

    But no, instead they’ll cut and run. What a waste.

    • Aaronrules380

      Yeah, What square is doing here is as bad as what they were doing before. Rather than cut back on spending and adjusting the ridiculous expectations they have, they decided that anything that doesn’t meet those insane expectations should be cut. Honestly, I feel like the problems they’ve had will go on as bad or worse even with new management if this is there strategy

  • fireemblembeast

    I came here to read the comments XD

    • Yuriangels

      lol me too!!! (^+^)

  • malek86

    Not sure how Metacritic led them to believe Hitman could sell 5 millions. I thought reception was mostly ok but not great.

    Anyway, those were some severely high expectations. Perhaps Sleeping Dogs could have done it, but the others were too high. Hitman’s genre is not that mainstream and there was also a controversy, and Tomb Raider had some issues with credibility based on the last few entries.

    I do wonder if those games would have even sold as much as they did, without those early price cuts. I’m not sure how they thought those sales could be reached.

  • kenshee

    It feels like they don’t realize the effect that a lack of flagship titles in their most prominent series can have on their company name.

    Let’s face it, Jrpg fans back in squaresoft days didn’t have to think long when a new game was out: you wanted it. (or at least, that’s how it was for me)

    Now, while I still like the recent final fantasies, they have been less universally popular. Not to mention, there’s years and years in between big releases. As tired as I am of assassin’s creed, they did keep everyone buying a ton of games throughout a console generation, and back in SNES and ps1 days, square made final fantasies pretty much yearly.

    Then there’s the whole concept of social games. I’m sure it’s making them money, but am I alone here thinking that making that kind of stuff a pretty big focus of theirs is making them less interesting to the more traditional gamer?
    If square-enix teases a new announcement I don’t even care anymore. Then I hear it’s actually a game, on consoles, from one of their more unique IPs, and I almost can’t believe what I’m reading. (case in point: drakengard 3, we need more of that, no matter how low budget it looks, I want more stories and rpg gameplay)

    Lastly, they lament low(er) sales in the west, but then, they also don’t cater to their biggest fans. Type-0, bravely default and dragon quest 7 are all excellent examples of games a squaresoft (or enix) fan would actually want to play, but they’re either taking really long to come out, or don’t at all.

    So then the few games that are coming out are selling great numbers, but not as much as they expected, considering how much of a budget they gave those projects. Yet in the end, I feel those titles sold less than they could merely because the company name has lost so much popularity over the years.

    So what I’m trying to say, they need to get more games out, localize the games people obviously want, even if they won’t sell millions, just keep costs as low as possible, but release them! This gives you a lot more good will in the end, even if the games themselves didn’t make a huge profit…

    • Alexander Marquis Starkey

      Dude this really has nothing to do with the JRPG market as none of these games are JRPGs, or even developed by Square Enix. Your point is a bit moot.

      • http://profiles.google.com/dnlblue Daniel blue

        His point is that Square should rely more on promoting their own games and stop pretending all of their financial problems come from their western branch. They should focus on a good amount of smaller, cheaper projects – preferably produced in-house – instead of spending all their moolah on a just a few outsourced AAA releases.

        • $36598391

          I agree, I would love to see the Saga and Front Mission games get some attention again Final Fantasy Legend 3/Saga for the original gameboy was one of my favorite games when I was younger

        • Geoff Kelly

          Huh? They aren’t pretending that the problems come from the western branch at all. The vast majority of the loss figures posted are from cuts in the Japanese sector, read the article again.

  • http://www.facebook.com/people/Stephen-Mc-Devitt/100002626261475 Stephen Mc Devitt

    I just Motomu Toriyama will be fired for damaging the Final Fantasy brand. Sadly, removing XIII and XIII-2 from shelves would be a good idea like Sega did with Sonic ’06 and Unleashed.

    • LynxAmali

      I was gonna crack a joke about 7 doing that long before XIII, in terms of fanbase, but I’d probably anger said fanbase. Which I don’t want.

      • mahrze

        Yeah. I think a lot of us would have done that. Avoided making any “bad rep” to that not so lucky number… :P

  • wat_wat

    On what planet has a Hitman game ever sold near 5 million copies? Hitman was always a low seller. Hell, I’m surprised it even did 3.6 mil. Tomb raider sales have also been on a steady decline since the PS1 glory days, I don’t care how well it gets rebooted. I think past history with these franchises need to be taken into account, and there’s no indication of either of these games hitting Squeenix’s ridiculous sales goals when you look back. For a new IP, I think Sleeping Dogs sold pretty well and could reach its goal. Maybe not in the amount of time Squeenix would like, but it should get there.

    Meanwhile, what has the Japanese branch been up to? They put tons of money into FF XIV, the sequel to their cash cow MMORPG. They absolutely needed to get it right, but they messed it up badly and poured even more money into fixing it. FF XIII-2 sold less than the first and became bargain bin fodder due to it being grossly overshipped. Still no FF Versus in sight, but we get another Lightning sequel and All The Bravest, whoop-de-freakin’-do.

    Seems to me that Squeenix isn’t getting the free piggyback ride they were expecting from Eidos and now all the management missteps are showing through. Hopefully they can get it together. Their interest in social Browser and Phone games doesn’t give me hope, though.

    • Kevin Schwarz

      Hitman only sold that much because of the youtube hype with those CG trailers and stuff. You are right, it was never a game that sold much. It’s just that SE simply have their sight up to high to see their feet.

    • http://www.mengsbizarreadventure.com Mengplex

      Agreed. 3.6M for a hitman game is actually pretty impressive.

  • ShadowDivz

    You want good sales in NA? Call of Fantasy VIII: Dirge Of Warfare.
    An FPS where you can play as your favorite final fantasy character attacking the middle east. Make it as generic as possible and it will sell.
    The worst part is… that started out as a joke but as i reread it…. it made sense.

    • Testsubject909

      To note. I don’t really care about FF7. I played it long ago, it was alright. But to play on your idea.

      A Final Fantasy 7 game, sequel to Dirge of Cerberus, take some inspiration from Mass Effect and expand the world of Final Fantasy 7. With the destruction of their world’s weapon which was meant to carry the lifestream to safety, the world they inhabit is ultimately doomed and the remains of Hojo and Shinra’s experiments runs deeper then expected, the era of the battle between Cloud and Sephiroth is long over but their presence and what they have done has forever scarred the world and te aftermath of their conflict also runs deep. Cloud could be a playable character but wouldn’t be the focus, carry over Vincent Valentine as well as an elite troop of new characters, or more precisely, recurring characters from the first Dirge of Cerberus game who now form an elite squadron of mercenaries along with Vincent as they deal against these new threats of experiments gone wrong or experiments far too successful that were engineered by Hojo/Shinra.

      Toss in a moral dilemma which can be done with the existence of Mako and it’s direct effect to the lifestream, the lowering life standard of the world as they’re suffering moreso, the lifestream possibly becoming unstable and a possible threat of another world’s weapon who was destroyed by a cataclysmic event coming to inhabit their current world and having to deal with a sentient weapon that carries another world’s lifestream within it.

      Bring back Cid Highwind and expand upon his space faring technology with the aid of the current Shinra corporation that may or may not have turned a new leaf over but seem to be on a path of redemption despite their past actions and tensions with the group….

      This is straight out of my head… And again, I don’t really give a damn about FF7. It’s a good game but one whose fanbase has overblown it to the point where it’s hard to genuinely enjoy FF7 fully and properly… Unless you’re lucky and never had any contact with anyone who ever said anything about FF7… Even then the moment you’d start to splurge about your experiences…

  • xzeldax3

    This is really disappointing because these titles were very enjoyable in my opinion and now SE might have less motivation to take risks for future games.

  • JustThisOne

    I’m glad they at least recognize that they were using outdated business models. Perhaps, with a new president and some good choices, SE could get back on the horse?

    I wonder if that means they’ll be avoiding console games for awhile… I’m sure the big name FF titles will be fine; like the remaster and the PS4 one. But does this mean there won’t be any more Tomb Raiders and Sleeping Dogs for a while? They were good games!

    EDIT: I guess I should also note… The PS4 would be a great opportunity for a fresh start for them. If the developing on it proves to be a little easier, anyway…

  • Alos88

    Damnit Square, fewer risks and more social games is NOT the way to turn this around!

    • Ethan_Twain

      I’m not sure how you take that away from this. Our report says that social games are doing well for them, and that the new IP Sleeping Dogs did not do as well as they thought it should. So why do you say that riskier products are better and social games are worse for them when they’re reporting literally the opposite.

      This isn’t them saying “we think this might be how things pan out”, this is how things have already happened. The numbers are in. The opposite of your statement has been proven to be true.

      • Alos88

        If you want them to focus on mediocre mobile titles and never risk anything on a new IP again then fine, I suppose letting the old Square die doesn’t bother you much.

        • $36598391

          Squaresoft is long gone, it’s disappointing but sadly the truth
          Nobuo Uematsu left the company, everyone who worked on Xenogears left, some other people left as well

        • Testsubject909

          The old Square is long dead…

          We already held a funeral…

          And a memorial service…

          We even had a reunion…. And we did the same for Enix.

          They’re both dead Jim…

          They have ceased to be. They have expired. They are an ex-company…

          Squeenix though exists.

    • mirumu

      I’m with you on the risks angle. Companies don’t grow by playing it safe. As much as I dislike social games however 20 billion yen (revenue I assume) is staggering. Profitable too. They’d be crazy to give up on that.

      • Testsubject909

        Man the amount of money Facebook games make is also pretty staggering.

        Edit: To note. I don’t play Facebook games… I have far better games waiting.

  • Rufos_S

    Tomb Raider has sold more than 3.4m, they didn’t count with the digital sales and it hasn’t been released in Japan yet… Anyway more than 3.4m sales in on month it’s superb for Tomb Raider and they should be happy with that amount. Can’t wait for a new one…
    If they want sales than do that Before Crisis:FFVII Remake for the 3ds and the Vita, get type-0 out of Japan, release Versus and maybe do a GOOD FFVII Remake, but if it isn’t good let it be like it is.

  • KnifeAndFork

    lol “let’s blame the Western produced games” and use them as scapegoats despite them all doing well over a million while even DQ X barely scratched 500K and FF XIII-2 sold even worse than expected and of course the “true” losses in income from NOT releasing Versus, NOT localizing Type Zero focusing on small micromanaged social games instead of making titles people want and of course the disaster that was FF XIV 1.0

    Really Square? Really?

    • 60hz

      um shouldn’t you base it on P&L (profit & losses) not sales numbers??? I’m not sure they are blaming western produced games as much as he was blaming their tarot card predictions. Just judging from what he said their prediction models were working in the wrong direction, they seemed to have been looking at the big sellers then working backward ignoring the fact that there are tons of middling sellers that achieved the same METACRITIC scores that didn’t achieve the same sales. (metacritic scores don’t equate sales – so why put that in your equation???).

    • http://www.siliconera.com/ Ishaan

      Read the full report. Cancelled projects from Japan are mentioned. And social games are actually making them money.

    • mirumu

      I’m one of those who hasn’t liked any games Squeenix has created in Japan for the last few years, but even from that perspective I don’t think any mistakes there let their western arm off the hook. Eidos was failing when Squeenix bought them after all, and there’s still little sign they’ve turned around. The western sales predictions would have come from analysts who in theory at least had an understanding of western markets too. Squeenix have done some crazy things, but are their Japanese execs crazy enough to just make up their own numbers for sales in western markets? Hard to believe.

    • Armane

      DQ X only shipped 700,000 though and it had over 400,000 subscribers back in November. I’d say it’s probably a success.

      http://www.vg247.com/2012/11/06/sleeping-dogs-ships-1-5-million-copies-dragon-quest-x-ships-700000/

    • Testsubject909

      Micromanaged social games project long term high revenue though.

      They make those games for financial reasons… Because apparently it does rake in a profit.

  • http://twitter.com/Kazuo_Kiriyama Richard

    And FFXIV didn’t do badly too? Seems like they’re just blaming their Western game division & the Western game markets a little too much.

  • Scarletmoonwish

    I think some people are missing the point, SE designed these games with the western audience in mind, that is why they keep referring to NA/EU sales figures, and noted the heavily western influences of the game. I’m not defending SE here but I don’t think it means the end of their more RPG type games, but instead less of their games like Tomb Raider and Sleeping Dogs.

    • Oscar Garza

      wich is a shame if you ask me cuz Tomb Raider is one hell of a game; it is definetly on my list of “games of the year”

  • 60hz

    psst, square, base your estimates on how much your games (dev+sales+marketing) need to make to break even NOT on some mystical prediction formulas based on (OF ALL THINGS) METACRITIC!!!??!?!? And you are surprised at how OFF the prediction was… REALLY???

    • saxophone15

      A lot of game developers/publishers use metacritic to assess value. It’s not just Square Enix.

  • Cagosinho Jr

    For me, the wrong thing is to expect that loads of titles sell 5 or 10m copies. There is only room for a few titles to sell that much each year.

    It is not like “AAA titles sell 10m copies, so we will release 30 AAA titles per year and each one will sell 10m copies”. People have limited budget for buying games, and especially on growing markets from developing countries, there is a big chasm between the sales of the top 10 games of the year and the rest. Besides, they can’t expect that every gamer will buy every “big” title they launch, because they are from different genres.

    Now, if Square Enix will scrap every franchise that doesn’t sell above 5 million copies of their games, they will close their offices in less than 3 years with no IP remaining..

    • mirumu

      That’s something a lot of publishers and industry watchers seem to miss. The amount of discretionary spending in the market at any time is finite and can easily be diverted elsewhere be it other games, or something else entirely. In the 80s videogame crash the market stopped buying games on a large scale. I wouldn’t necessarily say it’s happening again, I really hope it isn’t, but there are some warning signs around.

      I don’t view SquareEnix’s reaction as a bad one though from a business perspective. They don’t seem obsessed with selling x-million copies. They look more focused on areas of profitability and fixing their revenue model. With more realistic sales estimates they may turn things around.

      • Testsubject909

        With a shift towards indies, or rather a greater awareness of indies, paired with a lot of mistrust and a sensation of betrayal from many larger companies in the industry.

        … I’m wondering if we’ll be seeing the eventual downfall of certain giants and the eventual replacement they’ll have… In the form of said indies.

  • Dhruv Rajyagor

    Sleeping Dogs only sold 1.75 million copies? I was actually expecting it to sell at least 2 million. I actually liked the game. I mean there ARE a few things they could fix on, but those few needed fixes don’t make it a bad game at all. Though it IS a new game, releasing at the near end of the PS3/360/Wii console generation, and typically new games released during that time frame aren’t bought in favor of saving money for the new consoles (from what I can tell).

    Regardless, I really hope they support the game despite the sales numbers not meeting expectations.

    As for Hitman and Tomb Raider, I’m pretty positive those sales expectations are a bit high.

  • Warboss Aohd

    Final Fantasy 13 Versus, Kingdom Hearts 3, FF7 remake.

    Den ya will make all da money.

    • Testsubject909

      I know many gamers who won’t care about a FF7 remake…

      Plus the fanbase has done some bad towards a potential market for the game… Because a lot of FF7 fans in the past had attitudes that would be similar to something that in popular culture was dubbed the “Narutard”.

      Specifically, an over-excited fan with little experience in a given field expressing their jubilation over a subject with an excess of glee and an incapability to take in a grander scope and a better understanding of the general field that said subject belonged to and then pursued the goal of expressing the supremacy of said subject without proper comparison… In large numbers… Overwhelmingly large numbers… Causing a social backlash…

      But those numbers are still high so, yes, I’d imagine a FF7 remake would make them fair money… Not as much as they’d estimate though considering the numbers they like to pull out of their asses.

      • Warboss Aohd

        i don’t even LIKE FF7, but many clearly do. It just makez sense.

        Edit: Also, one o’ dere problemz iz dey took numberz from Metacritic, which iz alwayz a bad idea.

  • Helepythia

    I’m just wondering, was there a lot of advertisement going on for these games? I don’t believe I’ve seen any except for the articles written on here. And to compare with the stronger titles, such as Battlefield….I’m already seeing BF4 adverts everywhere!

  • Lightthrower

    3.6 millions for Hitman? That’s AMAZING!

  • Kevin Schwarz

    It seems Square-enix wants the whole continent to buy their wonderful games, but we lowly humans simply won’t fulfill their expectations! Shame on all of us! We disappoint them!

  • Eitachi

    two words Kingdom Hearts

  • Hossi Blumengaarten

    Eidos games are doing great, wtf is wrong with SE, most western games do NOT EVEN get those numbers!!! unless it is Halo, COD, GTA, BF it gets low numbers

    Tomb Raider and Hitman have done amazing compared to past game sales(recently) now they are blaming EIDOS when it is the Japanese studios that are failing big time with Final Fantasy!!!

  • TheExile285

    Seems like SE has gotten a little full of themselves to expect such high sales

  • ZekeFreek

    pfffhahahahahahaaaha. Oh Square… you so funny. bwahahahahahahaahahaha. You really expected those numbers? bwahahahaahahahahahahaa. This is like watching a little kid try to buy a brand new game with the dollar he earned folding socks. It’s both sad and hilarious at the same time.

  • Alex

    Looking at this article further proves Square Enix is terribly mismanaged and things might be worse for the company than I thought. Were they expecting CoD numbers? If they were, they’re just dreaming. Part of the reason CoD sells so well is it’s practically an e-sport. Someone needs to do an in depth study of the cult of Call of Duty. Tomb Raider should have not had multiplayer it was never a series that suited that sort of thing and it will be abandoned soon if it hasn’t already.

    • Testsubject909

      Well, for Call of Duty there’s also the social and historical aspect when we look at the US and their cultural impact on North America.

      Edit: Call of Duty is almost the perfect game for the archetypical US citizen.

  • Reno Evangelista

    Squeenix slowly and surely continues its march on becoming the new Zynga.

  • Tom

    I don’t know about you guys but when it comes to talk about Square Enix, not Tomb Raider, Hitman or Sleeping Dogs the first thing that comes to mind. So The “the company’s selling capacity has been “far weaker than we ever imagined” in North America and Europe” is just stupid.

  • michel

    So we finally know where the losses are coming from: the managers!…

  • isfuturebright

    It’s funny for them to be in a bad spot I mean… It’s three good games. Two good reboots and a new franchise… They gotta think in a long term, right?

  • Mr. X

    Using metacritic to establish sales expectations? Fire whoever thought that was a good idea.

    • mirumu

      Unfortunately they’d have to fire half the industry because many, many companies do it.

      Seems to me it’s a bit of a vicious cycle as many gamers seem to trust reviews less and less these days, and yet the publishers are relying on them more than ever to predict sales.

      • Testsubject909

        In some cases it’s a loss of credibility. (Edit: Actually considering long term effects, all cases are due to loss of credibility, so ignore what I just said earlier…)

        For example. I lost any interest in Gametrailer reviews outside of just seeing gameplay footage to get a better grasp of the game’s content because…

        Well… They kept bleeding out their love for Xbox360 and disdain towards PS3 for a few years… It really got grating. They’d make sure to point out the flaws of a PS3′s version of a game but often just skim or skip talking about whatever flaws a 360 game could have on multiconsole games where the PS3 version was superior in the many minute details…

        And then came in many reviewers who seemed to just fly by their personal experiences rather then an objective breakdown of the game’s content… It no longer felt like you were in to receive information and a review of a game but rather just a guy’s impressions of a game after he finished an LP or something of the sort… Except you didn’t have his play experience available for viewing meaning you had no emotional attachment towards the person playing and little to no context for their experience. And the many negative views of so called professional reviewers just kept on piling up to the point where many experienced gamers just disregard reviewers in general unless they find one whose insight they can understand and compare to their own to determine if a game’s content fits with what they enjoy, but those reviewers tend to be non-professional ones or just semi-professional.

  • Valtiel Ikari

    so does this meen that there will be no Final Fantasy 13 versus? since I imagine that game development has been costly with the time is has taken… I’m sad now.

  • http://twitter.com/MFGreth Tony

    If this means they’re canning any future production on further Tomb Raider or Sleeping Dogs stuff, then I am done with Square Enix forever. Admittedly Hitman Absolution was a letdown, but those two titles are extremely solid. Also, I hope to see more Deus Ex in the near future. The best stuff coming out of Square-Enix these days is FROM their Western development studios. The only possible exception might be Dragon Quest….but it’s Dragon Quest.

  • Kai2591

    My impression of Square Enix.

  • http://radiantloki.blogspot.com/ Mark Dinh

    I have one thing in mind. Does any game developing company ever read the comments about them on the internet? Looking at all the comments below, I think it would give a few nudges to SE.

    I enjoyed Tomb Raider a lot, but I didn’t expect it to sell that high. 5-6 million is really pushing it. Search up the sales for the previous TR games in the past. They started to decline really slow over the years. I just surprised it sold 3.6 million. Where are these expectations coming from honestly? Hitman : A I still haven’t got the time to finish the game but I am enjoying that too. Sleeping Dogs is a really fun game to play, but I don’t expect that to sale too high but their expectations for it seemed to be the most reasonable of the bunch. Who the hell is their sales adviser? What is even the purpose of having a sales expectation within a only a few weeks? Is it because they expect it to be sold in the billions like Call of Duty? It’s already sad that most of the demographic sales here in NAis over a FPS that is overly repetitive, but companies should not have to make their games just to compare to that. =/

    I’m also sick and tired of these social mobile games…. my mind just baffles that SE “Solid performance” is in the social game genre. That in itself not a pleasant way to represent a major gaming company who has done many games on consoles before doing them on the phone.

  • http://ryuz4ki57inenglish.wordpress.com/ Thomas FROEHLICHER

    Can SquareEnix land back on Earth now? VGchartz has TR at 1.7m and it’s overtracked. SE is gonna sell the rest of their shipment at bomba price provided they can even clear it. Maybe they will realize now that their fanbase wants Japanese games. They ditched their fans in jumping on the western bandwagon, hoping to make billions, and yet they lost those. They have no values nor honor. Such douches totally deserve the sh** they’re in!

  • youfi

    really interesting, and frighting. did they really think “ouha metacritic says it rocks so we can sell billions of billions of whatever game”?

    I mean I don’t care how much reviewers praise SE and their products…. the only thing that mater to me is that I was sooOOOoo disappointed by 13-2 that SE means “avoid this game” for me.

    you can’t spit on someone and expect that they continue to buy your product. That’s why I don’t buy SE product anymore, I don’t want to be disappointed again….

    maybe they should spend less money on graphics and more on story/characters/univers….

  • BleuVII

    I am so completely unsympathetic on this one. For a 3.5-million seller game to “underperform”… yeah, it’s time to step down as the CEO. You have no business here. Maybe you should just keep releasing blatant fundraisers like Final Fantasy: All the Bravest.

  • unitedbyfakes

    how about they publish the losses on the most recent final fantasy games and you know maybe look at them rather than expect massive sales on new ips and ips that have not been relevant for 10 years plus, which sold well considering

    • saxophone15

      Don’t you mean “game” and not “games”, since FFXIII and XIII-2 both made profit.

  • りんごタルト@エスカのアトリエ

    So Wada outright blames low sales for their Western games when all losses are incurred at home? Really, Squeenix? If they didn’t decide to be hacks with the last two Final Fantasy games, and stopped pushing tons of remakes and mobile ports back home, they wouldn’t incur this much loss.

    Don’t you think Squeenix should just make mobile games for Japan and let the Western studios handle AAA titles? Because they way I see it, the next gen isn’t a profitable market in Japan anymore.

  • Testsubject909

    “effort to sort out items not achieving expected revenue levels, through scrapping those items and terminating production”

    Does that mean they’ll pull the plug on FFXIV?

    I’m honestly wondering here because, as far as I’ve been informed to date… It’s been doing horribly and has been a financial drain with a still wavering future…

    And with the selection of many great MMOs out there… It’s future looks quite bleak.

    • saxophone15

      FFXIV is still happening…it’s been confirmed by the director.

      I don’t know what you’ve been hearing, but the new FFXIV seems to be much better than 1.0…though I haven’t actually played 1.0 (I’m going off of how 1.0 gameplay looked).

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