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Square Enix Q1 FY2014: Extraordinary loss, lists social/mobile/browser/MMO success

hongcha

Member
On the bright side they did release Bravely Default last year, so at least some of the people at SE still know how to make a proper SNES-style JRPG. It's the best game they've made in over 15 years.
 

AniHawk

Member
what's really sad is how there was how interested squaresoft was in doing different things back in the 90s. not everything they've done in the last decade has been sequel sequel sequel, but they made a conscious effort to label most of what they were doing as final fantasy and stop focusing on finding anything new. the absolutely moronic decision to make fnc a generation-encompassing series (that didn't see a couple of the games originally planned for it come out as initially intended) is what really led them to the apathy customers react with now.
 
The main difference is that EL is not reported on the earnings but separately instead and is caused by special circumstances, like the case here or something like natural disasters and not directly related to the state of the business itself. This is to show how well a business is performing better and separating these one time rare cases from the usual flow of the business, though for Square Enix this is the second time they are reporting an EL in a short period, with change of management and restructuring not too surprising

It's completely dishonest of SE to call this EL. This is the result of how they run their business, not some outside unforeseen force. Their failure to hold development team accountable to deadlines and milestones is what caused this, the people in charge needs to own it rather than blame it on bad luck.
 

Spongebob

Banned
You honestly think a FFVII remake would be anything less than a disaster? The expectations are through the effing roof for the remake, due to heavy nostalgia glasses, and I don't think the undertaking of something so prized should be attempted, while the company is gasping for breath. The project would be far more expensive than any SE project in the work right now. It's not like they can *poof* a remake into existence. Not to mention some aspects of the game straight up, can simply not be re-created without causing major issues (honey bee/cross dressing scenes, ALL mini games, Barrett and Cid's cursing, Barrett's character in general, etc.)

I'm of the mind that a FFVII remake simply will never happen. Even as it's my favorite FF of all time, I don't want to see it unavoidably butchered, just to try to please fans. The franchise has long since moved on. I think people need to face reality.
I wasn't being serious >_>
 

Nirolak

Mrgrgr
It's completely dishonest of SE to call this EL. This is the result of how they run their business, not some outside unforeseen force. Their failure to hold development team accountable to deadlines and milestones is what caused this, the people in charge needs to own it rather than blame it on bad luck.
It's a writedown so it has to go in the EL bucket IIRC.
 
what's really sad is how there was how interested squaresoft was in doing different things back in the 90s. not everything they've done in the last decade has been sequel sequel sequel, but they made a conscious effort to label most of what they were doing as final fantasy and stop focusing on finding anything new. the absolutely moronic decision to make fnc a generation-encompassing series (that didn't see a couple of the games originally planned for it come out as initially intended) is what really led them to the apathy customers react with now.

I really hope they learned their lesson and will knock that off going forward.
 

AniHawk

Member
I feel like a Final Fantasy V 3DS 3D remake can still happen. I don't think Square-Enix has fully squeezed the life out of that ship yet before it sets sail.

why can't we get an actual six remake. why is four remade all the time. nobody likes four. they thought they did, but they really actually liked six.

i know this runs contrary to my moaning about s-e only making final fantasy games, but how many times did they stop and start again? they've done 1-4 so god damn much. at least with dragon quest, they give a good decade between the initial game and the remake.
 

Quentyn

Member
Another extraordinary loss. It will be interesting to see, if and how they will turn it around.

Anybody has a guess when we will see the "exciting" new release plan Phil Rogers spoke off?
 
Only option they have now is to create Lightning Strikes Back and Lightning: The Phantom Menace



See above, it's their only shot!

im sitting here... late at night and ur avatar scared the living shit out of me......

also yes please more lightning DLC. i am hoping for some in Tomb Raider 2
 

Mael

Member
It's their fault. Their fanbase was ripe and ready for a remake years ago. Instead they did jack. Now the expectations for the remake skyrocketted ridiculously, while the window on it being relevant keeps closing. In the meantime, they're too busy giving us stuff like FF:ATB and more Lightning.

You got your FFVII projects with the horrible FPS and all, if people wanted more FFVII they would have gobbled up the games expanding the universe like candy and we would be in FFVII-18 by now.
You got your chance let it rest.
 
I hope SE learns their lesson and doesn't rush out kingdom hearts and FF15 like they did for ff14 1.0. Would be terrible if all this time they end up sucking.

Also hoping 2.0 does well, it plays and looks like a great game but it was a big gamble trying to fix it.
 

jwhit28

Member
why can't we get an actual six remake. why is four remade all the time. nobody likes four. they thought they did, but they really actually liked six.

i know this runs contrary to my moaning about s-e only making final fantasy games, but how many times did they stop and start again? they've done 1-4 so god damn much. at least with dragon quest, they give a good decade between the initial game and the remake.

Hey I like IV. I hope they continue with the 3D remake line they started on DS, but they need to make sure they can put it on phones as well as hopefully 3DS and Vita. As much as I dislike mobile games, releasing on mobile, 3DS, and Vita seems like the best compromise people that prefer classic controls can hope for.
 

Ishan

Junior Member
I can't see Sony buying se ... Sony on a whole sometimes makes bad calls but the playstation division makes pretty safe secure investments ... That's why I feel they haven't lapped up gamer company yet and why they won't lap up se ..... They have a good sense of identifying upcoming studios with potential ... BOTH. Gaming and business wise .... I'm no expert on this but it seems to me they go in quick when there is potential for both and cut ties quick enough too .. The playstation brand has a good knack for it. (By playstation I mean Sony worldwide studios)

EDIT if se went thq yeah I can see Sony buying up lisences but the whole company ... Don't see it now or in the near future
 

Elios83

Member
It was nice of Wada to leave the company in this state :p
Unfortunately they have made so many bad decisions in the recent years...now the new CEO seems to be planning to shrink their traditional business to a few selected big titles which ''cannot fail to generate a return'' (like FFXV, KH3, Tomb Raider next gen and others) while the bulk of their production will go social/mobile.
It will be interesting to see if the investements they have made in remaking FFXIV will be worth it. I honestly doubt they'll get enough subscriptions to make up for all the expenses and the bomba of version 1.0.
 
why can't we get an actual six remake. why is four remade all the time. nobody likes four. they thought they did, but they really actually liked six.

i know this runs contrary to my moaning about s-e only making final fantasy games, but how many times did they stop and start again? they've done 1-4 so god damn much. at least with dragon quest, they give a good decade between the initial game and the remake.
You'll get Final Fantasy 4 remakes until you love it as much as they do, darn it.
 

eorl

Banned
Be honest, how much is SE riding on FF14 ARR? They have spent a ton of money fixing the game up, and have done well in the process, but if it doesn't garner the subscriber numbers they need to balance the sheets not just from ARR's development, but from the original loss as well, would that tip SE?

I don't like jumping on doomed bandwagons and I won't for SE, though I would definitely be tightening my belt if I was SE.

Somewhat off-topic, but I've been seeing some big devs/publishers preparing for the wave of next-gen and it seems like they are predicting some pretty big budgets and losses. If the future turns out to be hazardous, could we see fewer AAA titles but more time spent on the few they pump out?
 

Nirolak

Mrgrgr
Another extraordinary loss. It will be interesting to see, if and how they will turn it around.

Anybody has a guess when we will see the "exciting" new release plan Phil Rogers spoke off?
It's hard to predict what soon means in Square Enix time.
 

Kouriozan

Member
Dragon Quest X is doing well?
But didn't they say it was below their expectation?
Releasing this on PC in Japan won't give it a huge boost, but I guess it was only to release it outside of Japan.
 

Scum

Junior Member
I'm awaiting the Capcom-esque announcements anytime soon. :-/

didn't the $100m loss on spirits within nearly end squaresoft in 2001?

Apparently things weren't as bad. I read someone's post on this a little while ago. It was a lot of money to lose then but the loss was used as a dubious ploy by Wada and one other for their own shenanigans. Like the merger with Enix. That's why shit turned out like this. Wada's incompetence.

why can't we get an actual six remake. why is four remade all the time. nobody likes four. they thought they did, but they really actually liked six.

i know this runs contrary to my moaning about s-e only making final fantasy games, but how many times did they stop and start again? they've done 1-4 so god damn much. at least with dragon quest, they give a good decade between the initial game and the remake.
I'll take Final Fantasy: Crystal Chronicles as well.
 

Cheebo

Banned
Why are so many people saying they need to get rid of their iOS team? Isn't that one of the few areas actually making them money? None of these replies make any sense. Japanese developers aren't making iOS/Android games for the "lolz". They do it because it makes them money.
 

LiquidMetal14

hide your water-based mammals
I can only gauge but imagine if SE brought their games to something like the PSM program or even ported most of those over too VC. There is money to be made there, even if the games aren't super expensive.

I hope SE's mention on PSM will hopefully mean some ports and easy money for them.
 

Shion

Member
S-E got too big for their own good. I don't understand why they bought out Western companies like Eidos.

Because JRPGs are becoming more and more irrelevant in the new, western-centric, market.

They needed a new stable of IPs to stay relevant in the new market environment.
 

putarorex

Member
On the bright side, they actually showed earnings improvement year on year. They moved into the black at the operating and recurring profit levels and posted a smaller loss at the bottom line. They still expect to be turning a profit over the full fiscal year as well.
 

Rocky

Banned
what's really sad is how there was how interested squaresoft was in doing different things back in the 90s. not everything they've done in the last decade has been sequel sequel sequel, but they made a conscious effort to label most of what they were doing as final fantasy and stop focusing on finding anything new. the absolutely moronic decision to make fnc a generation-encompassing series (that didn't see a couple of the games originally planned for it come out as initially intended) is what really led them to the apathy customers react with now.

Why is so much credit given to "Squaresoft"? "Squaresoft" never made any of those great games, the company was just a subsidiary of Square, Ltd to handle NA publishing and localizations. I think the only game that was actually developed by Squaresoft was FF Mystic Quest, which was awful.

http://www.allgame.com/company.php?id=1381
 

Isaccard

Member
You do this to yourself Square Enix.

- Fuck you for your stupid bone headed decisions.
- Fuck you for putting Kingdom Hearts on every fucking platform ever with zero care for the fans who want to keep up. PS2 --> GBA -- >DS --> PSP --> 3DS --> Cell Phones.
- Fuck you for making Star Ocean / Infinite Undiscovery exclusive to 360 and killing of early HD RPG games.
- Fuck you for just NOW discovering HD Remasters of previous titles, and not being forward thinking enough to release them on 360, Wii U, PS4, Xbone, or PC.
- Finally, Fuck you for relegating the following titles to obscurity or giving them the iOS treatment:

Secret of Mana
Chrono Trigger
Kingdom Hearts
Einahnder
Grandia
Valkyrie Profile
Ehrgeiz
Threads of Fate

Is it that hard in this day and age to port these games to all platforms?.

This sounds like a personal problem.
 
- Fuck you for putting Kingdom Hearts on every fucking platform ever with zero care for the fans who want to keep up. PS2 --> GBA -- >DS --> PSP --> 3DS --> Cell Phones.
That is actually a huge problem.
Then a game worthy of being a mainline title(BBS) gets stuck on a handheld.
while its likely that 3 (next mainline console entry) won't be released until 2015 at the earliest. That is 10 years since the last.

Good thing for 1.5 and hopefully 2.5
 

Asd202

Member
Well after FF XIV RR bombs I wonder what they're going to do. FF XI numbers are not going to cut it and they won't be higher then that, LR sales are also going to do jack shit I'm expecting it to not sell over 1 million ww to customers. My guess is next year or so there going to downsize
 

jaxword

Member
Why are so many people saying they need to get rid of their iOS team? Isn't that one of the few areas actually making them money? None of these replies make any sense. Japanese developers aren't making iOS/Android games for the "lolz". They do it because it makes them money.

Those replies are from people who desperately want to turn back time to 1997. A time when, apparently, Squaresoft was not a company and not interested in making money?
 

Nirolak

Mrgrgr
So how soon before they bow out of the console business?

I think they've pretty much settled on the same approach as most companies have right now.

1.) A handful of AAAA projects with tons of DLC/microtransactions/extra digital content.
2.) Everything else is social/mobile/browser/etc.

The one notable difference is that they still run Dragon Quest as a 3DS franchise, but that is basically a major blockbuster on the blockbuster platform for its region at least.
 
Simple solution:

1. Fire everyone involved with any thing to do with Lightning.
2. Fire everyone making an iOS game.
3. Find the guy who made Final Fantasy XII, give him a bag of money, contact the folks behind the Luminous Engine.
4. Port Secret of Mana, Final Fantasy, Chrono Trigger, Kindom Hearts etc. to every platform ever and include online play.
5. Hire the best indie guys money can find, and get them cracking on some 2D RPG goodness.

Profit.

6. Hire competent and professional project managers. This goes for most developers actually.
 

HeelPower

Member
They lost a lot of money and have nothing to pick up the slack in terms of big titles.

You seem to forget Lightning Returns.The most polished/complete FF of yet! The marketing was unprecedented too.

I expect 10~15 million sales...you need not worry about SE with Toriyama solely leading their flagship series for 7 years.
 
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