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Square Enix Facing Big Losses For 2010

eldavojohn writes "It's no secret that Final Fantasy XIV took a lot of heat early on, which required extensive damage control. And the Japanese tsunami (which appears to have added $7.5 million to their losses) certainly didn't help. But if what early investor reports are saying is true, then Square Enix is expected to report $148 million in losses for the closing fiscal year. Expect title cancellations (which might add to the hurt) and a very painful realization for the owner of Final Fantasy and Dragon Warrior (PDF). Perhaps a move to re-releasing classics will prove more fruitful than high development cost MMORPGs?"

22 of 210 comments (clear)

  1. Worst merger, ever by assemblerex · · Score: 2

    In square-enix, the square is silent.

    1. Re:Worst merger, ever by DanTheStone · · Score: 2

      The Kingdom Hearts games for PS2 are pretty good.

  2. Re-release classics? by Anonymous Coward · · Score: 5, Insightful

    Why not...uh...find out what made the classics classic and do a bit more of that?

    You know, games with interesting, non-whiney characters, non-linear story with some exploration in gameplay, music that is better tailored to each scene so it doesn't sound like they just put a track in to fill the silence.

    1. Re:Re-release classics? by Aladrin · · Score: 4, Insightful

      It's even simpler than that. STOP spending so much money on the parts of the game that people don't really care about!

      Sure, FF13 is beautiful, but the gamers would rather have had a better plot and characters. They'd rather have had open exploration, instead of that railroad. They'd rather have had real weapon customization instead of that linear just-keep-adding-things crap with no choices. Even the job system didn't have any real choices.

      Gamers don't want a movie. They want an interactive experience.

      --
      "If you make people think they're thinking, they'll love you; But if you really make them think, they'll hate you." - DM
    2. Re:Re-release classics? by CronoCloud · · Score: 2

      They'd rather have had open exploration, instead of that railroad. They'd rather have had real weapon customization instead of that linear just-keep-adding-things crap with no choices. Even the job system didn't have any real choices.

      Ha ha ha. You don't realize that the hardest core of Final Fantasies Japanese playbase is very conformist and doesn't want that. They want to buy the game on the same day everyone else buys it, play it the same optimal way, do the same things, develop their characters the same way. and have th exact same experience everyone else does. Didn't you play FFX!?

      FFXII had some of the things you wanted...and that fanbase complained. In fact, Basch was originally going to be the main character until Square decided that the hardcore japanese fanbase (even some that had been playing FF's for years and were as old or older than Basch) wouldn't be able to identify with the 36 year old adult Basch, so they added the kids...Vaan and Penelo.

    3. Re:Re-release classics? by RichiH · · Score: 2

      Thanks, but I still have my cartridge at home thus emulators are legal.

      Also, iOS? No thanks.

    4. Re:Re-release classics? by CronoCloud · · Score: 2

      though I would add that I actually really enjoyed FF10

      So did I, except for the @#$#@ lightning dodging that I was never able to do, and the grinding you had to do to be able to take on some of the stuff in the Monster Arena. X is probably my second or third favorite Final Fantasy, VII being #1 and VI being #2 or #3 depending. It's the cast, they're likable and they behave like people on some "serious business".

      On another note Square ought to learn "economy of characters" XII would have been fine without Vaan and Penelo, especially if you 4 characters (Basch, Ashe, Balthier, Fran) at once which the game probably could have handled...since you can have 3 and Larsa FFIX is the worst in this regard. The core party in IX is Zidane, Steiner, Vivi and Garnet. They could have dropped the other 4, wouldn't have missed Amaranth, Quina or Eiko.

      Is that info about the FF12 main character reliably sourced?

      Most certainly, FFXII's developers said it themselves.

      http://en.wikipedia.org/wiki/Final_Fantasy_XII#Development

      I loved the free roaming stuff in FF12. I particularly loved that if you did some fairly short power-levelling early in the game, you could essentially switch yourself onto a different gameplay track, being fed with new and interestingly designed super-bosses via the hunts system as you went through the game.

      Yeah, the Hunts...that was a great idea. Those things were tough! It was fighting them that I figured out that FFXII in many ways is more like FFXI. A good example is how status effects are more useful., even against the boss-style hunts.

  3. Sad state of affairs for a once great company by mjhacker · · Score: 5, Insightful

    How could a company that consistently produced quality entertainment for nearly two decades be reduced to a mere shadow of its former self? What happened? As probably one of the few people on /. that actually loved FFXI, I have to say, FFXIV was a complete waste of time. FFXI was fun, but it didn't age well, and there were a lot of things that SE could have learned from and done better. Instead of learning from their mistakes, they ended up making a less fun, more frustrating version of FFXI, and thought that making it pretty would solve everything. Well, it didn't, and now they're paying the price for it. SE needs to go back to the mindset that they had when they were just Square. They need to stop cranking out duds every 3 months. We need games that are on the caliber of FFVI, Chrono Trigger, and Xenogears. Otherwise, the world will simply stop caring about them... that is, if we haven't stopped caring already.

    1. Re:Sad state of affairs for a once great company by rekenner · · Score: 4, Informative

      I feel like being a bit of a pedant, here.
      If it wasn't for the merger with Enix, Square likely wouldn't be around. See, it wasn't so much a merger as a Square-fucked-up-when-they-made-The-Spirits-Within-and-needed-bailing-out. Further, they had a lot of great years after that merger, given that it was... almost a decade ago. They considered merging before that, but at the point they merged, TSW lost Square a bunch of money and they would have had a hard time making it back on their feet.

    2. Re:Sad state of affairs for a once great company by RogueyWon · · Score: 2

      Yes, absolutely right. Spirits Within should be remembered as one of the greatest disasters in the history of the entertainment industries.

      And yes, Square continued to put out great games for a while after the merger. Kingdom Hearts 2 was probably the best game of the PS2 console generation. FF12 is probably my second favorite installment in the series (behind FF7, and a little bit ahead of FF6 and FF10). But I suspect that those games had a lot of their development work done pre-merger, or in the immediate aftermath of the merger before corporate identities had really come together.

      If you look at the pre-merger Enix, you see a lot of the behaviours that Square-Enix manifests these days. Grind-heavy, innovation-light games with underwhelming technical standards, aimed primarily at a hardcore Japanese market, with little understanding of what the international market (or even the mainstream Japanese market) wants out of a game.

      In any sensible world, a merger between the two companies would not have seen the limited-appeal (and long-term dead end) Enix methodology come out so comprehensively on top. However, given that Squaresoft basically had to beg for a rescue, it was perhaps inevitable that their risk taking wouldn't survive.

    3. Re:Sad state of affairs for a once great company by LordLucless · · Score: 2

      It also cost millions, made next to none of it back, and virtually bankrupted Square. People don't like it because of the repercussions of making it, not because of the quality of the end product.

      --
      Just because you're paranoid doesn't mean there isn't an invisible demon about to eat your face
  4. Sod Final Fantasy by L4t3r4lu5 · · Score: 4, Insightful

    If Deus Ex: Human Revolution is done right, they'll be well into the black again.

    August 11th, folks. Diaries should be marked.

    --
    Finally had enough. Come see us over at https://soylentnews.org/
  5. Everything they make sucks by Andtalath · · Score: 3, Insightful

    It's really that simple, squeenix has lost all manner of quality.
    They just make ugly designs, annoying musc, 100% grindy gameplay and stories which grow less and less cool.

    The main problem is that japans gaming culture and western gaming culture has grown more and more widely apart.

    This really hurts their market.

  6. Not just Square-Enix in a quagmire right now by RogueyWon · · Score: 5, Interesting

    Square-Enix's problems mirror, to a large extent, those that have afflicted the wider Japanese gaming industry (including, once you discount early Wii hardware sales, Nintendo), during the current console cycle.

    At the heart of this is a failure to evolve their games and franchises to reflect changing times and tastes. If often feels like the modern Japanese games industry doesn't recognise anything between "no change at all" and "total ground-up redesign". It's instructive to compare how the most successful Western developers have managed franchises and general gaming concepts over this time. If you look at the likes of Bioware, Bethesda, Bungie, Blizzard, Valve, even some of EA's own internal development efforts, you can see a pretty ruthless evolutionary approach to design. When a game comes out and the studio begins development either on a sequel or even a new property, the first thing that seems to happen is a look at what people liked and didn't like about the previous game, with this being factored into the development of the sequel.

    Take Bioware as a case-study here. Baldur's Gate came out in 1998 and was pretty successful. However, it was the sequel, which came out a couple of years later, that really revolutionised Western RPGs. Why? Because Bioware had evolved the franchise, removing aspects of the original game that had been "a bit too pen and paper" for CRPG players (such as no-pausing-on-the-inventory-screen mechanics and large amounts of wilderness crawling) and had expanded the areas that had been well received (adding further complexity to the casting system, expanding character dialogue trees and so on). Once Bioware moved on from the Baldur's Gate series, they continued releasing RPGs that very clearly had BG in their DNA, but which shed some of the pricklier aspects of the old series, while borrowing popular elements of Japanese RPGs (such as the "active party" system). Then having reached a point where they faced a serious conflict between hardcore RPG gamers and the more casual crowd, they essentially "fork" their games, with the Dragon Age series pitched for the hardcore and the Mass Effect series for the action demographic. That isn't to say that Bioware don't make mis-steps - Dragon Age 2 feels very much like a mis-step, and Jade Empire can probably be seen as one with hindsight - but an evolutionary approach like this makes it much easier to get back on track after a wobble.

    Then compare Square-Enix's management of its premier RPG property - the Final Fantasy series. There's no evidence of a planned evolutionary approach to the development of the series - just an odd mixture of clinging to past certainties combined with random-throw-of-the-dice leaps into the dark. There are elements of the Final Fantasy series on show in FF13 which feel like products of another era. Random encounters (and I'm sorry, but making them visible on the field map doesn't make them any less random encounters) have been pretty much entirely ditched in the West. Our developers have figured out that - surprise surprise - gamers don't like spending a couple of hours runnng in circles in a dungeon just to level up. Yes, levelling up is part of RPGs, but any Western RPG worth its salt these days ensures that it is done via interesting sidequests and subplots. And yet there they are, still at the centre of the flagship Japanese RPG series (and pretty much every other JRPG).

    The throw-of-the-dice element seems to come in the way that Square-Enix completely changes its battle and level up systems (and often even wider mechanics) for each installment in the series. At times, this has been a strength. It does keep the games from feeling a bit too samey. But when the throw of the dice produces a result that people actually like, it inexplicably never seems to get developed any further. So, for example, FF12's move towards more open-world gameplay was pretty widely welcomed, even by people who didn't like much else about the game. Yet then FF13 comes out and is basically a 30 hour tunnel for the player to

  7. Listen! by Rie+Beam · · Score: 2

    Get me:

    (1) A New Final Fantasy on a tablet and other portable device that, (2) While still pretty, (3) Has a fun and exciting mechanism incorporating touchscreen RPGing and (4) Isn't prepared by a poll of "things teenagers like". Make sure that it (6) Has a triage that goes: Gameplay, Immersiveness, Storyline, and then Graphics; and (7) Has an ability, in some form, to interact with other players, be it via Bluetooth or over the Internet.

    You risk falling victim to being another dead game company if you continue to emphasize high-budget "Wow!" games over ones that will actually draw new players into the series. You don't have to abandon the concepts you've developed, but please, just try something new. Is that so much to ask?

  8. Absolutely.. by Junta · · Score: 4, Insightful

    Looking back, FFVII remains one of my favorite experiences. I tried to think more carefully about why on a recent replay.

    The top thing had to be the music. It was just fantastic. Maybe I just like chiptunes, but even as late as FFX, it seemed like they had some notable 'background' tracks. Now it seems like they are all generic toned down orchestral pieces that aren't noticable at all and just barely tweak to fit the mood. Except for when they make some pop song to prop up somewhere in the middle of the game...

    The open ended nature of exploration absolutely was up there. There are a lot of games that continue to get this part at least. One of the big moments when playing FFVII for the first time was leavinig midgar. Up until that point, I thought it was going to be a game like FFX or later turned out to be. Then when the world map presented itself, the contrast did a lot (for me) toward making midgar feel more like a cramped place with little control of your destiny relative to the larger world.

    Another thing was how the story panned out. The general theme was certainly not new, but the details were so convoluted, I liked it. Of course, I like Crono Trigger and there was nothing partiuclarly complex about the story at all.

    Finally, I think the lack of definition and no voice actors helped. I fill in the details with whatever I like. Crisis Core tought me I really won't like the voice actors if I get to make up my mind about how they should sound ahead of time.

    The worst thing was the translation.

    --
    XML is like violence. If it doesn't solve the problem, use more.
    1. Re:Absolutely.. by Rakarra · · Score: 2

      Some (actually most) of Uematsu's orchestral pieces are simply stunning.

      The problem - Uematsu is taking lesser and lesser roles as time goes on. He basically had no hand in the FF13 soundtrack, and IT SHOWS. Elevator music in one area? (the Whateveritwascalled Massif) - You've got to be kidding me!

      Well FFX was Uematsu's last real Final Fantasy soundtrack (although he shared scoring duties in that one too). He and executive producer Hironobu Sakaguchi left Square afterwards to form their own company, and Uematsu works morely on a contract/hired gun basis now.

  9. Re:They need to kill FFXIV by RogueyWon · · Score: 2

    Agreed. I've heard of plenty of attempts at resurrecting an MMO that's had a poor start and so far as I can tell, these have a 0% success rate. The PS3 version won't save it - particularly not in the aftermath of the PSN leak fiasco, which is going to make people particularly cautious about online gaming on the PS3.

    The game's a failure - abject and total. At this point, keeping it going is doing nothing bar drawing resources from more promising endeavours. If there are any players out there who actually like the game (and I can't say I've come across any, even when logged into it myself), then it's a bit rough for them, but you're always going to back a loser once in a while.

    I suspect the biggest reason why S-E haven't killed it already is pride. To have a main-series FF game acknowledged as a failure that could not be redeemed will be a huge blow to morale, likely not just for executives but throughout the company. It's never happened before; Final Fantasy is part of Square's mythology, with the first title having famously saved the company when it was on the verge of failure (the "Final" in the name was because they expected it to be the last game they ever released). Even the games which have been seen as underwhelming with hindsight (probably 5, 9 and 13) have sold well enough that the company could reasonably present them as successes. 11 was the most successful full-subscription MMO going, until World of Warcraft hit the scene and smashed all previous records. S-E have only themselves (and their cheap Chinese subcontractors) to blame for 14, but that isn't going to make them feel any better about it.

  10. Re:So what? They could make that any time they wan by RogueyWon · · Score: 2

    I've wondered about this for years myself. A remade FF7, for PS3 and 360, with modern graphics, a few user interface tweaks and possibly a bit of bonus content on the side (like a new optional dungeon or something) would be an absolute gold-mine. Unfortunately, I remember some comments that came out of them last year, to the effect that it would simply be too expensive to remake FF7.

    I'm not sure I can understand how this could possibly be. In terms of size and scale, the game isn't particularly different to other JRPGs. Lost Odyssey, which came out a few years ago now for the 360, had a perfectly acceptable level of current-gen graphics. Factor in that FF7's cutscenes are on the short side compared to those in... say... FF13 and it's hard to see how the price could truly be that prohibitive. I can only assume that S-E were thinking that if they were to remake FF7, they'd need to quadruple the length of all of the cutscenes, adding in a bunch of new Advent Children-style fight scenes and whatnot. That in itself illustrates a good chunk about why the company is going wrong.

  11. Re:Flame went higher. by Skarecrow77 · · Score: 2

    in retrospec, 8 doesn't look as dumb as some of the ones after it, but at the time it looked like such a huge departure that I didn't have any interest in it, and never bothered to pick it up. not when I had competition like Skies of Arcadia and Grandia II on the Dreamcast (It took me awhile to get a Playstation).

  12. Re:Flame went higher. by Andy+Dodd · · Score: 2

    I felt that FF12 was pretty good - you might want to give that a try.

    FF13 was a massive disappointment after 12.

    --
    retrorocket.o not found, launch anyway?
  13. Re-releases are part of the problem by 0racle · · Score: 2

    Many people will not pay again and again and again for the same game. I bought them once, I personally am not going to buy them again.

    Unless they are happy to exist simply as the shadow if their former self, they are going to have to make new games that people want to pay for.

    --
    "I use a Mac because I'm just better than you are."