Their handling of Luminous hasn't been incompetent. It hasn't been problem free, sure (when is engine development ever? Even Epic has clearly had some setbacks with UE4, considering what they promised in regards to certain feats and what is actually possible nowadays), and one can argue whether it's wise to develop proprietary engines or not, but all-in-all they seem to have done a pretty good job with it, considering what they are able to achieve with FFXV. They began working on it well in advance of this current generation like they should have (vs. White Engine development only beginning around 2005/2006, several game originally having to use it and then deciding to go multiplatform with the change to Crystal Tools later on to complicate things even further) and ultimately they made the somewhat wise decision to not force Luminous use for all of their big games when the tools weren't quite done (which could have been disastrous, much like pushing Crystal Tools on games when they weren't done), instead opting to integrate the Luminous team to the FFXV team to not only help make FFXV the flagship title SQEX needs it to be, but also to help improve & make the Luminous Studio into something that is fully developed & fleshed out for game development. Whether Luminous is a total waste of time or not will really depend on what happens after FFXV. Do they still keep using Unreal Engine 4 for (almost) everything and FFXV is left as the sole Luminous using game or will their future big games start using Luminous going forward.