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Square-Enix FY2011 Results, 5 "Strong" (2+ Mil) Original IPs planned, Online Plans

Pooya

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http://www.andriasang.com/e/blog/2011/05/14/wada_on_losses/
http://www.nikkei.com/news/headline/article/g=96958A9C9F81968BE3E1E2EBEB9CE3E1E2E7E0E2E3E3E2E2E2E2E2E2

Anoop Gantayat said:
Speaking at an investor's briefing on the 13th (via Nikkei), Wada explained that of the 12 billion loss, about 4.5 billion came from such things as Final Fantasy XIV's reworking and the cancelation of multiple titles. Most of the 4.5 billion was related to domestic development, he said.

"Our game development has become weaker than expected," admitted Wada. "Revamping it will take one or two years."

Wada attributed the poor state of development to weak communication. Creative leads did not pass on his opinion to their subordinates. Additionally, there was trouble with division of labor amongst technical staff, who were protective and would fulfill only their own roles.

To reverse Square Enix's fiscal fortunes, Wada hopes to give a major push to social networking games and apps for high powered cell phones. However, he is unsure if developers who've worked on package games can work in these areas, so he's hoping to make use of external developers. However, he's not considering an acquisition.

This past year, internet-related products brought in profits of 1.5 billion yen for Square Enix. The goal is to multiply this during the current fiscal year, said Wada. Square Enix is also looking into possibly creating a billing platform.

One major point from the presentation materials PDF Square Enix released on Friday (see this story) was mention of a plan to double the company's major brands to around 10 or so. It looks like the PDF was not referring to this year. While development on these new brands is progressing, Wada believes it will take 3 to 5 years.
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http://www.square-enix.com/eng/news/pdf/11q4release.pdf
http://www.square-enix.com/eng/news/pdf/11q4earnings.pdf

slides
http://www.square-enix.com/eng/news/pdf/11q4slides.pdf

Yoichi Wada said:
"Our Group experienced significantly lower sales and profit during the fiscal year mainly due to weak performance of console game titles released during the year as well as the impact of a continued delay in billing for a key online title, which was newly launched during the year.
"Further, under a rapidly changing operating environment and more prudent estimates of future cash flows, the Company wrote down goodwill (approximately ¥8.8 billion). Project development cancellation and related losses (approximately ¥4.5 billion) as well as losses caused by natural disaster (approximately ¥0.6 billion) were also factors in the recording of total extraordinary losses of ¥16.0 billion. “In the fiscal year ending March 31, 2012, we are very focused on the Group's key strategic initiatives of globalization, becoming “network centric”, and strengthening our own-IPs as we work to generate a substantial earnings recovery from the fiscal year ending
March 31, 2013 and beyond."







 

Takao

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Uh, that Type-0 listing with no other regions planned scares me a lot.

I'm willing to wager a bet Sqenix will be holding it back for the NGP.

DarknessTear said:
I see a lack of Versus. lol
Clearly it is a casualty.
 

ULTROS!

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Aug 17, 2009
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What does "Digitalizing Our Catalog" mean? More PSone classics?

Kinda curious what the 2 IPs SE Tokyo are developing, hopefully they're not lolshooters.
 

Pooya

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Thief 4 is most certainly inot canned, Eidos Montreal devs were talking about it last week, that the main focus of the studio is that now the DEHR is finished and that the main hall of the studio is now used for the project or something like that.
 

Ryuuga

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Remember when Kitase said that the dev time of Versus-XIII was comparartively faster than FFXIII? How's that coming al-...oh it's not listed, but for whatever reason XIII-2 still is.
 

ULTROS!

People seem to like me because I am polite and I am rarely late. I like to eat ice cream and I really enjoy a nice pair of slacks.
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There a number of titles not placed there such as:

Tomb Raider (2012)
Kingdom Hearts 3D
Chocobo Racing 3D
 

Big One

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Sep 8, 2009
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If a title has any semblance of popularity, it probably isn't cancelled. Pretty positive this'll just be for more obscure projects that no one gives a shit about.
 

ULTROS!

People seem to like me because I am polite and I am rarely late. I like to eat ice cream and I really enjoy a nice pair of slacks.
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TheOddOne said:
I will get in a hissy fit if this gets cancelled.
I highly doubt it, it was just talked about recently.

Plus it's a "blockbuster" title (sells millions, well known IP, etc.).
 
Dec 14, 2008
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I love how Wada kinda glossed over the fact that their "key online title" probably won't be billing-ready until 2012 at the current glacial development pace, oh by the way almost all the players have fled already from the sight of the "key online title".
 

squall211

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Takao said:
Uh, that Type-0 listing with no other regions planned scares me a lot.

I'm willing to wager a bet Sqenix will be holding it back for the NGP.


Well, Type-0 is destined to bomb in the west on the PSP. Maybe using it as a launch NGP title might help.
 

Cmagus

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Versus won't be one of the canned titles there is too much interest in the game to scrap it at this point although I am sure it has had a hell of a production I mean there is no way a game like that should take this long and even the newest trailer unless the video was old looked rough in some spots.

They seriously need to restructure how they develop because although they almost always release a quality product but the sheer amount of time it takes to produce one is on the ridiculous side.
 
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squall211 said:
Well, Type-0 is destined to bomb in the west on the PSP. Maybe using it as a launch NGP title might help.
It just doesn't make any sense to release it on PSP, they won't even have enough time to localize it before NGP hits some region. Type-0 isn't dated for Japan still, I wouldn't even rule out yet another delay.

Though I can't see Square-Enix doing what would be best, which would be UMD-PSN-NGP. They could fit the entire 2 UMDs into one NGP card and call it a day, no need to rework it (it'd delay it). Best for everyone, fans, Square and Sony.
 

Cmagus

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Kurosaki Ichigo said:
It just doesn't make any sense to release it on PSP, they won't even have enough time to localize it before NGP hits some region. Type-0 isn't dated for Japan still, I wouldn't even rule out yet another delay.

Though I can't see Square-Enix doing what would be best, which would be UMD-PSN-NGP. They could fit the entire 2 UMDs into one NGP card and call it a day, no need to rework it (it'd delay it). Best for everyone, fans, Square and Sony.
I wouldn't be surprised if there isn't a NGP/Type-0 bundle in japan at least
 

cw_sasuke

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Dedication Through Light said:
Wow, I cant believe it. I was looking forward to Type-0 too, so odd that its not for outside JPN.
Type-0 will probably be a e3 announcement.
 

RaijinFY

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ULTROS! said:
What does "Digitalizing Our Catalog" mean? More PSone classics?

Kinda curious what the 2 IPs SE Tokyo are developing, hopefully they're not lolshooters.

If they develop shooters, i'm going to shoot them for real seriously...
 
Dec 14, 2008
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Corran Horn said:
Revitalize our major MMO titles? Good luck with that...
XI is in the end stages of it's life cycle, I'm not sure if it has fallen below the 100k subs sunset milestone yet but it's final update is being delivered this summer and after that there are no more planned content additions.

XIV needs to be shut down and then the development team can work peacefuly on a non-live game to quite literally redesign the entire thing from the ground up and relaunch it in 2012. There's no good reason to keep it running for ~15k players who are all playing for free anyways, you can't make money on free. If Squenix was bold enough to actually go through with taking off and nuking the site from orbit, which I don't think they have the balls quite frankly, they could create a whole new FFXIV.

Re-creating FFXIV wouldn't be literally from nothing. All the engine development is done and they have a whole game's worth of assets they can reuse to speed up the process, but right now the game which is currently running is stillborn and retrofitting it will not accomplish anything. Everything about the existing FFXIV is fundamentally broken, from the core engine, combat system, and class design all the way up to the lack of any content.

The game should never have been envisioned with crafting or gathering classes side-by-side with and as important as battle classes, the entire story mission structure is entirely broken because classes which can't fight need to also be able to complete the story. The story quests can be soloed without fighting a single thing. Also, all quests in the game reward no experience and a meaningless item or small amounts of gil. Seriously. Whoever thought that was a brilliant idea needs to be executed by beheading with a katana.

The combat system's shortcomings are well-known at this point and the current plan to regress to an auto-attack based system is utterly laughable, you don't look back to the past to advance your game into the future. The game's economy is utterly dysfunctional and non-existent and quite frankly bolting on an auction house will not solve the fundamental flaws in the game's economic systems.

Oh, right, and there's still no meaningful content after 8 months of retail release. Quite literally the only thing which has been added since launch was some roaming Named Monsters, I refuse to call them Notorious Monsters because all of them except for one can be soloed or duoed. Speaking of utterly broken combat systems, because of certain completely unbalanced skills, it is possible for the Thaumaturge class (a mage class) to solo every fight in the entire game except for one Named Monster (the Great Buffalo, which requires 3-4 people).

Since the game lacks any quest content whatsoever, the only way to gain experience is to grind endlessly, or do guildleves. You can do 8 guildleves every 36 hours, and the guildleves consist of nothing more than go to a few spots around the camps and kill a pre-determined number of spawned mobs. Since you have a limited number of guildleves you can do in 36 hours, there is never any point in doing any guildleves other than the ones which reward the most experience, so everybody still playing the games does the same 4 guildleves every time there's a reset ad infinitum until they reach the level cap. For anyone who cares, these guildleves are named All Cracked Up, Dunesfolk for Dinner, Necrologos: Ranine Reveries, and Necrologos: Levinshower. Imagine an MMOG where you only have 4 quests anybody does and that's all they do, every 36 hours. That's FFXIV as it is played by the remaining players right now.

Does this game sound like fun yet? No? Big surprise. The game currently called FFXIV needs to be deleted from history and a new game called FFXIV needs to be created in it's place. Squenix could even call it FFXIV again when it re-launches in 2012 since they can reuse substantially all the existing assets, and we can all forget the current game ever existed.
 

wrowa

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Kafel said:
lol Versus

is it one of the canned titles?
No, but in all likelihood it's not going to be released in 2011.

Honestly, businesswise it might be a better idea to just cancel the game (what won't happen because the Final Fantasy fans would outright kill every SE employee). After so many years in development, I just can't see the game being profitable. Okay, writing off all of the development costs as loss might not be a great idea either :p
 

Wazzim

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wrowa said:
No, but in all likelihood it's not going to be released in 2011.

Honestly, businesswise it might be a better idea to just cancel the game (what won't happen because the Final Fantasy fans would outright kill every SE employee). After so many years in development, I just can't see the game being profitable. Okay, writing off all of the development costs as loss might not be a great idea either :p
SE is just incompetent this gen, FFXIII Versus should have been done in 2010.
 

Paracelsus

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Wazzim said:
SE is just incompetent this gen, FFXIII Versus should have been done in 2010.
One of their biggest clusterfucks was the engine itself. Over five years of work and all we got was this. Not mentioning you really do not need CG in this gen yet they still got carried away with it.
 

Cmagus

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FFXIV made some money though not huge but a decent amount at this point it wouldn't be a major blow to them if they cancelled it , sure they would lose monthly profits but from a development standpoint now would be the time to bail.If the PS3 version of FFXIV isn't on that list it is most likely cancelled there is no point waiting to release it next year because each month they waste they come closer to other upcoming mmos which will destroy FFXIV.

FFXIV development just isn't moving fast enough at this rate and although there have been changes they haven't been that significant for the amount of time they have had their production is just too slow.That plus most game sites have written the game off almost no one mentions the game anymore or even checks in on any kind of updates because they don't care the damage to this title is too much to recover from the damage is done.
 

Takao

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nephilimdj said:
Sure after there latest parasite eve game flopped only 2 months ago (The 3rd Birthday), there are a bit wherry.
The 3rd Birthday was originally envisioned as a cellphone game. I can't imagine it had some huge budget. While it most likely underperformed, they won't be singling it out as a major loss.
 

SykoTech

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chris-013 said:
FFXIII-2 already ?
I think it's using a lot of cut content from the first game. That way they can finally get a mainline FF game out in a normal, 2-year development cycle. At least, that seems to be the plan.
 
Jun 11, 2005
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Unknown Soldier said:
XI is in the end stages of it's life cycle, I'm not sure if it has fallen below the 100k subs sunset milestone yet but it's final update is being delivered this summer and after that there are no more planned content additions.
There are not enough forbidden smileys in the world for how incorrect this is.