Square-Enix Q3/13: ¥5.7b/$61M loss amid console market, praises social/mobile/browser

Erethian

Member
Isn't this mostly about them not making enough over the last quarter to cover the huge writedown they made on reworking FFXIV?

Point being, sales were up. But not up sufficiently to cover the 6 month loss ending Sept 30 2012.

Their net losses marginally increased, actually. Went from 5.48 billion yen to 5.745 billion yen.
 

LiquidMetal14

hide your water-based mammals
Maybe they also aren't making games their loyal fanbase once cared about. Or at least have been handling their precious IP's so wrong that I certainly do care less and haven't invested in a game from them in a while.
 

Trojita

Rapid Response Threadmaker
The worst part is if they blame this on Tomb Raider not doing well instead of Wada's fuckery.
 

Polo67

Member
I went from being the biggest square loyalist to despising them in one generation . They milk their fan base dry with over priced rereleases and crap IOS games. They haven't made a AAA RPG since FF12. I don't see them getting better next gen hopefully they surprise me.
 

truly101

I got grudge sucked!
SE's mismanagement of its brand has been so laughably bad this gen its mind boggling. Not even getting into say FFXIII's quality, I'm more perplexed on why they haven't done HD releases of the PS2 era FF games, that Type 0, the one PSP game people here might want to play, isn't coming out in some fashion. The list of IPs that still hold some coin that have been neglected. That Versus has become a punchline, and that SE doesn't want to believe everyone knows its not coming out. Its amazing how clueless they are.
 
I dunno. I think they could go through a serious downsizing if it it fails and still come out the other side. It won't be nice though.

FFXIV...what the fuck is even going on with that? I suppose one benefit is a new gen is the best time to try and reclaim the RPG market. I feel current genres and the western approach have reached a point. If the games good, and accessible - it could do very well.

I doubt they planned for Hitman, Sleeping Dogs and possibly a Tomb Raider bomb though.
They could be in for a real pounding for releasing so much when the gen is dying.

No, I think FFXIV failing would do them permanent damage and force them to seek either a capital injection through a new share issuance or a bail out from Sony or Nintendo.

Sony getting FF and Nintendo getting DQ would be a good match.
I doubt they could afford to buy both in a bidding war against each other (though; Nintendo might not turn up).

Thing with buying it up; why isn't FF exclusive? Can Sony buy the entire rights to the series and pay for its development when they can't even afford to pay the exclusivity?

More likely a third party will buy them. SEGA might get money from the top; it would sort out their Japan side issues certainly; the money from multi-platform is just sooo big, I can't see Sony gaining from the purchase. End of the day Nintendo will still have Mario.

I think Sony will want to get their hands on both and you are likey right, Nintendo wouldn't turn up in the first place. Sega are in no position to shell out ¥80bn for a company they need to turn around. They don't have a strong enough balance sheet. Don't forget that even after all the problems Sony have ¥450bn in the bank and are raising ¥200bn in the next two quarters via asset sales and a convertible bond.
 

Riposte

Member
I went from being the biggest square loyalist to despising them in one generation . They milk their fan base dry with over priced rereleases and crap IOS games. They haven't made a AAA RPG since FF12. I don't see them getting better next gen hopefully they surprise me.

I'm pretty confident in saying The Last Remnant is better than FFXII. Though the former is clearly a JRPG while the later is more of an offline MMO game in terms of combat systems (particularly in the FFXI style).
 

truly101

I got grudge sucked!
Tomb Raider isn´t their biggest problem, the game is probably going to sell decently. FF 14 and Lightning Returns on the other hand...ouch.

They've already started the ad push and marketing hype a month ahead of time. GAF forgets that they are a small part of the overall video game public and most of the people who buy the new TR don't know what a NeoGAF is. Point being you can't gauge GAf's lack of interest in the title, vs how the general public will react.

Despite that, TR still is not going to sell well enough to bail SE out
 

flawfuls

Member
“On the other hand, content for other platforms such as PCs [...] are generating an acceptable profit."

So maybe start releasing your Japanese-developed games on it?

They were talking about Japanese developed pc games when they said that. Hooray for shitty browser games!
 

Jarnet87

Member
I think their expectations are significantly lower than EA's were. If they want FFXIV to replicate their success with FFXI, they'll be thrilled with 500,000 monthly users, and they might be able to make money in the long run with much less. They don't need it to do anywhere near WoW numbers as long as they can hold a niche.

That said, FFXIV's development has still been hugely costly in terms of the amount of development time and manpower it gobbled up, and I'm still pessimistic about it even reaching Square's low end for expectations. Considering how badly people got burned by the original launch, they're going to have to put out a hell of a product to convince any number of them to return.

Agreed. They really just need the Japanese and to some extent the European hardcore fanbase to sign up or switch from 11 to 14. That what made 11 so successful after all these years.

Honestly I don't care if Square Enix goes under. Yeah it would suck for all those people to lose their jobs but they will find jobs with other companies. As discussed countless times already, the Square that the hardcore RPG fans loved has been dead since the early PS2 era.
 

Clear

CliffyB's Cock Holster
Erethian said:
Their net losses marginally increased, actually. Went from 5.48 billion yen to 5.745 billion yen.

It still follows that FFXIV is the culprit, given that rather than generating income at this point money is still being poured into development. And that in turn is displacing resources for the rest of their development slate, forcing them to outsource more in order to maintain completion dates.

It's also I think symptomatic of how in the HD console space, the bulk of the holiday-season sales are going to the same big franchises, year after year. What should be the most profitable quarter is getting diluted as big titled get bumped so as not to get starved out by the annualized heavy-hitters like CoD.
 

Mael

Member
A bail from Nintendo?
that's not happening,
Nintendo already have everything they want from SE : DQ which is Horii's anyway and without him no DQ.
Call me when Nintendo try to do anything but get DQ from SE.
SE as they are can die in a fire for all they release on console.
 

Polo67

Member
Maybe it's good for them to crumble a bit. Let them fail and fall flat on their face. That way they can go back to square one(pun intended) and refocus on making and completing quality titles in a timely fashion.
 
No, I think FFXIV failing would do them permanent damage and force them to seek either a capital injection through a new share issuance or a bail out from Sony or Nintendo.

Maybe. I still think owning the entirety of FF would let them raise finances without selling their two major series.

I think Sony will want to get their hands on both and you are likey right, Nintendo wouldn't turn up in the first place. Sega are in no position to shell out ¥80bn for a company they need to turn around. They don't have a strong enough balance sheet. Don't forget that even after all the problems Sony have ¥450bn in the bank and are raising ¥200bn in the next two quarters via asset sales and a convertible bond.

That money will be spent elsewhere on more profitable ventures though.
How much does Sony actually get from FF+PS4? I mean in relation to Japan; MS isn't an issue. They can leave Final Fantasy to third parties.

It just strikes me as an investment they'd struggle to really make money back on compared to a third party who can sell the franchise on a mixture of platforms worldwide.

Guess I disagree at how much value it can bring a console manufacturer over a third party. It would be a coup; but I think it'd have limited effects on the market for Sony to see any real benefit.
 
Don't worry guys things will be all good when we launch even more expensive hardware this year that requires even more time and money to make AAAAAA games for...
 
That money will be spent elsewhere on more profitable ventures though.
How much does Sony actually get from FF+PS4? I mean in relation to Japan; MS isn't an issue. They can leave Final Fantasy to third parties.

It just strikes me as an investment they'd struggle to really make money back on compared to a third party who can sell the franchise on a mixture of platforms worldwide.

Guess I disagree at how much value it can bring a console manufacturer over a third party. It would be a coup; but I think it'd have limited effects on the market for Sony to see any real benefit.

I don't think sony would do it but having FF become effectively a 1st party franchise would be pretty fucking big for sony (especially considering how weak their 1st party is in Japan).
 

Burt

Member
Every company has been down towards the end of this cycle, but Square-Enix is really reaping what it's sown. They've squandered fan loyalty and, if not ruined, at least severely tarnished the reputations of some of the most storied franchises in gaming. THQ should be alive, and SE should've been chopped up and had its IP sold off like scrap.
 
FF XIV 2.0 is probably eating tons of cash, it'll be hilarious if it bombs again.

If?

I personally think SE should take a step back and focus on their home market. Whereas before they made games like KH, FF, Chrono, Xeno, Mana, DQ, SO, etc that were all big sellers per iteration and many of them sold over 1 million just in Japan, nowadays only DQ and FF are the big sellers, with the latter dropping GREATLY in this last generation. Reason for that are many, from major milking of franchises to poor quality of the game. Those can all be fixed though SE doesn't have the talent it used to have. A lot of folks left for Monolith or other companies. They are in a tough position at their home country with just DQ being a major player today.

Wada won't do that though, he'll continue his milking and trying to appeal to the west. If SE continues down this path, I can't help but wonder when they'll get bought out by someone else.
 
Over/under Dragon Quest 7 outselling Tomb Raider worldwide?

It BETTER be under. DQVII will do maybe a couple of mil in Japan and maybe another 500k - 1 million in the rest of the world. It is just a remake though with a fraction of the budget of a full on reboot like Tomb Raider. Considering it's almost certain FFXIV 2.0 will bomb and bomb hard, they cannot afford to have Tomb Raider bomba either.

I would expect a new JPN owner to spin off Eidos, or sell it to a western publisher.

If it was Sony or MS buying them I'm not sure they would spin off Eidos. Sony would probably move Eidos under SOE so PC games would continue and MS would probably just keep it Xbox exclusive. If it was Nintendo I could see it though.
 

Riposte

Member
Are the people who believe XIV will certainly bomb considering XI's success (even today)? I think SE might be willing to let that pay for itself very slowly. It doesn't seem like like a EA move where under 2 million subscribers is considered a failure.
 
If the company that makes Final Fantasy games can't survive this gen, then next gen will be a death trap for third parties.

Particularly in Japan, I'd say. I don't see things ending well for any Japanese developer that goes all in on PS4/Durango development in an attempt to compete in the Western AAA market (see: Agni's Philosophy).
 

RPGCrazied

Member
Are they really expecting a big profit with Tomb Raider? Can't say I'm really interested in the game, but good luck I guess.
 

saichi

Member
Lightning doesn't return soon enough.

And now I guess I'll never see another TWEWY game on console/handheld systems. :(
 

Evolved1

make sure the pudding isn't too soggy but that just ruins everything
Make things people actually want instead of doing the opposite and trying to convince us we want it. Not money well spent.
 
A bail from Nintendo?
that's not happening,
Nintendo already have everything they want from SE : DQ which is Horii's anyway and without him no DQ.
Call me when Nintendo try to do anything but get DQ from SE.
SE as they are can die in a fire for all they release on console.

SE owns the DQ IP but doesn't develop them without Horii's approval. However, if they were to get bought out, the parent company would force Horii to play ball or GTFO.

That money will be spent elsewhere on more profitable ventures though.
How much does Sony actually get from FF+PS4? I mean in relation to Japan; MS isn't an issue. They can leave Final Fantasy to third parties.

It just strikes me as an investment they'd struggle to really make money back on compared to a third party who can sell the franchise on a mixture of platforms worldwide.

Guess I disagree at how much value it can bring a console manufacturer over a third party. It would be a coup; but I think it'd have limited effects on the market for Sony to see any real benefit.

I agree that 80B Y is overpaying for SE at this point, even when their stock says they are worth more than that. Sony, however, doesn't have any presence in Japan, one of the reasons Vita is struggling there. Had they owned SE, DQVIIR and Bravely Default would be vita exclusive, ensuring a huge, system selling franchise would be on the system. Sony needs SE more than Nintendo needs them.
 

BNB82

Neo Member
I've had no interest in playing any of their new games. I wish they'd do more HD remakes of older games, but they're already doing some of them. I'd pay $20+ for a Secret of Mana or Chrono Trigger HD remake for instance. I didn't buy Hitman because of the sexist ad campaign, which totally turned me off from the game, and I'm afraid Tomb Raider might be no different. Deus Ex could have been better. And speaking of the Eidos games, what happened to that Thief sequel? Final Fantasy XIII and XIII-2 were weak. I think most people were disappointed from how linear the first game was. I'm not even going to go into the Final Fantasy mmo(s).

It isn't the "'increasingly difficult' console market" but instead of their poor choices. There are plenty of games, developers, and publishers who are finding success in the current market. The problem is that they're doing not-so popular things with their most popular brands, such as Final Fantasy, and putting a lot of development into the Eidos brands that are returning with disappointing results.
 

Mael

Member
SE owns the DQ IP but doesn't develop them without Horii's approval. However, if they were to get bought out, the parent company would force Horii to play ball or GTFO.

And kill the golden goose?
Might as well ask for Toriyama to make the next Tactics game.
 

Tymerend

Member
They're putting a ton of marketing behind Tomb Raider, I'm seeing ads everywhere. My own feeling is that it'll probably do rather well.

However, their insistance of NOT doing a remake of Final Fantasy 7 is baffling. Regardless of how much money it might cost to redo that game, SO many people have fond memories of it that I find it difficult they wouldn't make stupid amounts of cash from it. I've been playing RPGs since Dragon Warrior on the NES, and I remember when FF7 hit, THAT was when the public noticed RPGs. Regardless of the actual quality of the game, nostalgia is a powerful force.

If what they're concerned about is money, and given All the Bravest I can't say they're going for much else, they could fill their bank by just doing a FF7 remake.

I hate what Square has become as much as anyone else. I grew up with their games, and it sucks to see them like this. I can't hold out much hope for their future these days, as they seem almost stubornly trying to kill themselves off, but hey, who knows.
 
Well... I suppose they're hardly going to come out and make a tearful admission that they made all the wrong decisions this generation. They're banking on Tomb Raider, really? That series has been rebooted and remade more times than I care to remember.

Can't say I've ever been a die-hard fan of Square Enix in the past, a casual enjoyment of the Kingdom Hearts series is about as far as I've gotten, but I recognize their past accolades, and it's a little sad on behalf of the fans I suppose to see where they're headed.
 
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