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Square-Enix Sees Profits Sink
Gamespot reports that RPG maker Square-Enix reported an almost 70% decline in net profit for most of last year. From the article: "Square Enix attributed most of its financial difficulties to its primary business--games. The company had a profitable nine months, releasing a number of hits: Kingdom Hearts II, which shipped 1.1 million units in Japan since its release in December; Romancing SaGa for the PS2, which shipped 500,000 units (Japan: 450,000, USA: 50,000); and Dragon Quest VIII, which shipped 430,000 units in North America. However, the numbers couldn't match those of the previous year, when Dragon Quest VIII shipped 3 million units in its first three days of release in Japan. The segment's sales fell 43.3 percent to 21.2 billion yen ($180 million), and its operating income plunged 95.1 percent to 974 million yen ($8.28 million)."
I have never really understood why it is news that a company that has had a profitable year wasn't as profitable as a previous blockbuster year. Last year, with greater profits, was news; this year just seems normal. Would anyone have a headline saying "Square-Enix has nice, but unexceptional, year"?
First they tried to entice me to buy Dragon Quest VIII with the FFXII demo. Now they are guilting me into buying it.
If this signature is witty enough, maybe somebody will like me.
Can someone convince me why I should / should not buy this game? I like DW I, II, and III, and I was a huge fan of USFFIII and FFIX.
sig?
I haven't bought a square game since Final Fantasy X2, so I have contributed to their decline I guess. But did you play it? I have played Final Fantasy games for as long as I can remember and I loved FFX. FFX2 was SO lame! Dance fighting with different outfits? I'm a girl and I don't even think that is fun. Hopefully their newer games are better, I haven't gotten into an RPG in a while (I tend to play them a little too much once I start) so I don't know. But if any of them are like FFX2, then I understand why they aren't making as much money!
"Wisdom is not a product of schooling but of the life-long attempt to acquire it." -Albert Einstein
SE releases DQVIII arguably THE most anticipated console game in years and then is unable to maintain the high profits enjoyed by the games initial launch? Gee, wow. I didn't see that coming.
I've never had much in the way of Enix/Dragon Quest experience, but I don't believe Dragon Quest has had much of a showing over here in the states before VIII, correct? (If not, I'm probably confusing it with Fire Emblem or something.)
If so, that would explain for the low sales. Fans of the series in Japan know how the previous games were, and reacted accordingly. Americans, excluding the small fanbase that does imports, don't know squat about it as far as experience, and in this age of sequels, that really matters.
The company had a profitable nine months, releasing a number of hits: Kingdom Hearts II, which shipped 1.1 million units in Japan since its release in December; Romancing SaGa for the PS2, which shipped 500,000 units (Japan: 450,000, USA: 50,000); and Dragon Quest VIII, which shipped 430,000 units in North America. However, the numbers couldn't match those of the previous year, when Dragon Quest VIII shipped 3 million units in its first three days of release in Japan. The segment's sales fell 43.3 percent to 21.2 billion yen ($180 million), and its operating income plunged 95.1 percent to 974 million yen ($8.28 million).
You ever hear the joke about the Russian Submarine during WWII? You see, they were chasing this German sub, and seemed to have lost track of it when they came across an American sub. The Russian sub surfaced and hailed the American sub.
Russians: "Comrade! Did you see a German sub come this way?"
Americans: "Yes! We spotted him as we entered this area"
Russians: "Excellent! Do you know which way it went?"
Americans: "Yes! He steamed off at 32 degrees, North by North-west on a best time heading for Siberia!"
Russians: "Don't be a smartass, just point!"
This summary feels a lot like the joke. Try this next time:
The company had a profitable nine months, but the numbers couldn't match those of the previous year.
Then maybe throw in a few combined totals about profits. You know, just say that profits are down by 43.3 percent, or ~$139 million dollars. Leave the complex figures to the article where they'll make more sense in context.
Javascript + Nintendo DSi = DSiCade
Maybe they'd do better on their American sales if they did some market research. Japanese social customs and values are very different than American ones. We're more likely to enjoy things that we can understand just as they are more likely to enjoy things they understand.
Gee, I wonder if that might have something to do with the fact that essentially nothing worthwhile (except Dragonquest VIII) was released this past year. I've seen more Square-Enix games in the GBA "rehashed Final Fantasy" isle than I have in the non-portable console isles. I can only think of TWO games that are anticipated from them: FFXII and Kingdom Hearts II. Thanks to the demo disc on DQ8, FF12 isn't anticipated any more, and I personally can't imagine Kingdom Hearts II to be any better than the original.
:o) I know the couple in my guild who owned up to playing it said they'd never return after playing WoW.
Maybe we'll finally see the actual Final Fantasy, hm?
Sales in its online game division fell by 9.2 percent to 9.62 billion yen ($81.8 million), and operating income fell 15.7 percent to 3.75 billion yen ($3.19 million).
Hehe, yeah, going against World of Warcraft can do that to you, can't it? I guess this squashes once and for all the rumor that people who left FFXI for WoW came back.
My brother got a copy of Dragon Warrior VIII for Christmas, and I had the opportunity to try out the FFXII demo.
I'm glad I did. The battle system was one of the most boring I've ever played in an RPG. The game practically plays itself. In the 'Boss Battle' in the second mission, I won without giving any orders to my characters at all except for using one ether when I ran out of magic points. Your allies heal themselves and you and there seemed to be little point in casting magic spells yourself except to heal.
I realize that Final Fantasy has always been a game with changing mechanics and battle systems, but making the battle system as simple as possible is not a step in the right direction.
So maybe the high distribution of DW VIII will contribute to the downturn in sales in more ways than one...
They haven't had any really good titles for awhile. Radiata Stories wasn't that great, Musashi wasn't that hot either, and I'm at a loss to remember anything else they did. They haven't had any Final Fantasies for awhile, and Dragon Quest isn't exactly a household name in the US, although apparently it did fairly well for itself. I'm guessing their portable offerings made them money though. (like Final Fantasy IV). With Kingdom Hearts II out in America this year, the upcoming Final Fantasy XII (hopefully out here before the end of 2006), and a bigger portable lineup (Children of Mana, FF3 DS, FF5 and 6 GBA remakes), they should probably see a better year.
Yeah, Final Fantasy Barbie was a major mis-step. Another thing that can't be helping is the fact that you can't play Final Fantasy XI on current PS2s.
GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
While I know that the Advent Children movie isn't related to game sales, I know a ton of American gamers, and fans of FFVII, that are boycotting Square until they release an English version of the movie.
A lot of us (I'm one of them) feel jilted because it's taken so long. The Japanese version didn't even have English subtitles (from what I know). I'm sure this isn't exactly hurting them, but this was probably the first time I looked at Square and went "I've given you so much of my time and money, and I only asked for this one! WTF!"
from Wikipedia
The series is extremely popular in Japan. Following the release of Dragon Quest III in 1988, the Japanese Diet requested that Enix only release new installments of the Dragon Quest series on Sundays or holidays, to prevent children from skipping school to wait in line for the latest Dragon Quest title.
Dragon Quest is such a cultural phenomenon in Japan that there are live-action ballets, musical concerts, and audio CDs based on the Dragon Quest universe.[3] The London Philharmonic Orchestra has performed for several Dragon Quest music albums.[4]
Still seem ridiculous for one game to have that big of an effect on profits? If it does badly, that represents a significant cultural shift for the country of Japan
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Man, they let it go and shot themselves in the foot. One of the greatest things in FF-X was Blitzball, and they screwed it up in FF-X2 No play, just stare and see how you lose. BLAH.
I for one would welcome a 100%-Blitzball from them. You could play single, teams, or "adventure mode" a-la FF-X, where you'd fight the monsters to gain blitzball abilities or recruit new players.
Perhaps we should mail them and tell them about it?
All I know is things should turn around with the release of Final Fantasy 3 on DS, FF:CC on Revolution (this year hopefully) and the FFXI on Xbox360... I think.
But I'm not surprised sales have dropped. Just look at the titles; they are all sequels. People are getting bored of the same old titles.
I remember great games back when they were called Squaresoft. Games such as Xenogears, Final Fantasy 6 (AKA 3) Einhander, Front Mission, Secret of Mana, Legend of mana, and even my all time Fav. Chrono trigger. This is back when Square created some of the greatest RPG's ive ever played. But I tell you this. Ever since the name was switched to Square-enix, I have not liked one single game since. I played Kingdom hearts, and was just baffled at how much the game sucked compaired to the others. I have not purchased a game since, and untill I see a change in quality I wont. Square was one of the best IMO. But now I have grown to love Bethesda games more.
Square should see its profits jump drastically within the next quarter to half year. A lot of people are waiting on Kingdom Hearts II (spring), Advent Children (also spring), and the next Final Fantasy (FFXII, also spring-ish). In addition to that, Square has another FFVII title lined up for PS2 (Dirge of Cerebus), ALL of which (with the possible exception of the last) have been pushed back and are coming due in the very near future in the US. These are all building off of Square's must popular series (FF and KH), neither of which saw a release last year (with the exception possibly of KH: Chain of Memories for Gameboy). But with all these poster child games and movies opening soon in the US, Square should see its pockets fattening up nicely very soon.
Parasite Eve III. Square, are you listening?
Square Enix got rid of their external press department awhile back. Now they have an internal department, which is very unfriendly with the gaming press. Some sites were cut, namely VGRC.net, the best site in the world, and left without review copies for games. This has certainly hurt their profit line in one form or another. I had a chat with Gary the Gaming Gluegun the other day. He was not pleased, either.
With the way they treat most of their customers, $E should be greatfull they post any profit at all.
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http://ffxi.allakhazam.com/forum.html?forum=10&mi
People have been threatened with bannings for using the email commenst and suggestions form to complain about a patch that didn't work. And fanboy idiots at the above link are claiming that calling the companies number which the company has listed as its contact for complaints is "harrasing" and "threatening" behavior.
And I was threatened with an account banning for posting my discontent. I laughed as I cancelled my account.
It just seems $quare-Enix doesn't want to deal with the customers at all..They don't want you calling them, they don't want you emailing them..They want you dealing with Sony just long enough for sony to tell you they can't do anything. Sony handles all US support under contract from SE - something many players have been contacting SE to complain about, as sony doesn't provide that support that they are supposed to -.- Japanese player who get to deal with japanese Square-Enix staffed support get good results, which leads many players to say SE has a bias to jP players. The truth is its not because they are japanese - it is because they don't deal with sony!
1UP.com interviewer: So it's mostly Square's show, then...[nervous laughter all around]...It's not to knock Sony's involvement -- we just found it interesting that either you have Square Enix running things, or even odder is you have two halves of Sony administering two different online games, since Sony Online has Everquest Online Adventures. Is it unusual at all for you to be working with a company that's sort of a competitor?
Yasu Kurosawa: Actually, Sony Online Entertainment is a good partner of ours. The handle the U.S. side as far as game masters and the call center, so we work together. They're highly professional on that end.
If you read up on what the patches $E has been making really do, its not hard to see FFXI going the way of SWG