Square Enix FY2024 Q1 Results

Kakax11 said:
SE response to the money bleeding in recent years?? make more console only exclusive games and complain they didn't sell well


good job SE, take a hint or 2 from Konami if Capcom hints didn't work
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FFXVI is actually the big positive here...?
 
Men_in_Boxes said:
Imagine where Square Enix would be without FF14.
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The funny thing is, they're going to kill their golden goose. The game has always been single-player focused in terms of its story delivery, but it was multiplayer for the gameplay segments. They have spent the last few years homogenizing PVE content with classes being simplified, enemy encounters being made easier, and revolving everything around a 120 second timing loop so that players can execute choreography to counter preset, scripted, predictable encounters. No variance allowed. No player expression through gameplay allowed.

And with the upcoming 7.0 expansion release, all dungeon content in the entire game will be soloable with NPCs. All in an effort to chase a demographic that doesn't typically play MMOs, at the expense of the playerbase that wants multiplayer experiences. It's why the playerbase is so focused on chasing the next streamer to see how they react to key story moments. They aren't even engaging with the game itself anymore, they're seeking social interaction via Twitch. But the streamers never stick around, and all the big ones have moved on.

As Rykan said, FFXIV has peaked. The next expansion will bring them some temporary numbers. But I doubt they'll see what they did with Shadowbringers and Endwalker. Endwalker is to FFXIV what Endgame was to MCU. Their best days are now behind. FFXIV is on the downturn and FFXVI has soured folks on CBU3. Better start planning better gameplay on a new MMO.
 
Watching studios chase mobile and fail is like watching a man push for an open marriage and then finding out his wife is way, way hotter than he is.
 
Kakax11 said:
the budget was too big, they still didn't make profit from the title
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I didn't see that mentioned specifically? Seems like the development costs are about what they've been spending recently on all development and not making back - especially on Forspoken. Not sure how development costs from the last six years show up specifically on one quarter, though.

But I read that as FFXVI wasn't enough to make up for Forspoken and other high-budget disappointments.
 
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Fbh said:
Square is having issues but I think it goes beyond just "not releasing enough multiplayer games"
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I'm mostly with you. I'd just say, it's not about releasing enough multiplayer games. It's about building your company to thrive in the market. We're in a new era, and they seem like a dinosaur of a company.
 
Meicyn said:
The funny thing is, they're going to kill their golden goose. The game has always been single-player focused in terms of its story delivery, but it was multiplayer for the gameplay segments. They have spent the last few years homogenizing PVE content with classes being simplified, enemy encounters being made easier, and revolving everything around a 120 second timing loop so that players can execute choreography to counter preset, scripted, predictable encounters. No variance allowed. No player expression through gameplay allowed.

And with the upcoming 7.0 expansion release, all dungeon content in the entire game will be soloable with NPCs. All in an effort to chase a demographic that doesn't typically play MMOs, at the expense of the playerbase that wants multiplayer experiences. It's why the playerbase is so focused on chasing the next streamer to see how they react to key story moments. They aren't even engaging with the game itself anymore, they're seeking social interaction via Twitch. But the streamers never stick around, and all the big ones have moved on.

As Rykan said, FFXIV has peaked. The next expansion will bring them some temporary numbers. But I doubt they'll see what they did with Shadowbringers and Endwalker. Endwalker is to FFXIV what Endgame was to MCU. Their best days are now behind. FFXIV is on the downturn and FFXVI has soured folks on CBU3. Better start planning better gameplay on a new MMO.
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Yoshida and the team have already expressed the desire to move to another MMO game sadly it won't happen anytime soon
 
Kakax11 said:
SE response to the money bleeding in recent years?? make more console only exclusive games and complain they didn't sell well
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Bleeding money!? Their balance sheet is VERY strong. Their operating cash flows have been VERY strong for years. You couldn't ask for healthier fundamentals.

Kakax11 said:
the budget was too big, they still didn't make profit from the title
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Yeah, you don't understand the numbers you're reading. All of the expenses that have been accrued during the entire multi-year development of FFXVI have suddenly been dumped on the income statement as an expense upon release. That is why you will see a positive % swing in profit in the next fiscal quarter. It has nothing to do with how they did in the last operating period
 
kazuyamishima said:
He forgot to mention that SE confirmed that the 1Q sales already covered the cost of FFXVI and all future sales (possibly from Q2) will be profit.
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He didn't forget that, it's just not that meaningful.

If a product costs 300$ to make, it doesn't mean that it becomes successful the moment it makes 301$ in revenue.
 
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"Square Enis will focus less on mid sized games amd more on AAA titles."

so, they will focus less on their actual good games? their AAA efforts have been weak for years.

the writing is on the wall. Square needs new leadership bad.
 
Rykan said:
He didn't forget that, it's just not that meaningful.

If a product costs 300$ to make, it doesn't mean that it becomes successful the moment it makes 301$ in revenue.
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It is when is a few years after launch, but the game just released about a month and a half ago.

By the end of the year it could another 2m more with discounts.
 
Gobjuduck said:
"Square Enis will focus less on mid sized games amd more on AAA titles."

so, they will focus less on their actual good games? their AAA efforts have been weak for years.

the writing is on the wall. Square needs new leadership bad.
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I mean it was their mid-sized titles not doing that amazing such as Diofield, Various Daylife, SoP, Balan, Harvestella, etc. In terms of AAA it would be Forspoken that suffered, I think.
They got a new leader so it's entirely dependent on which direction they take it. He seemed indicate it would focus on their existing FF/DQ/KH and new launches, so I'm going to assume it's the Capcom approach for now.

Although, I'm sad that once again we're losing the A/AA titles that ended up happening in the Wada era, but Matsuda's approach wasn't great. I just hope we don't lose Octopath, TWEWY style titles which were received well.
 
Gobjuduck said:
"Square Enis will focus less on mid sized games amd more on AAA titles."

so, they will focus less on their actual good games? their AAA efforts have been weak for years.

the writing is on the wall. Square needs new leadership bad.
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It's not as if their smaller-sized games fared any better. Octopath Traveler 2 doesn't seem to be very successful. I doubt games like Triangle Strategy did much better either. Valkyrie Elysium and Star Ocean also failed to make a significant impact. I can understand their decision to put more emphasis on AAA titles.

I don't believe it's the top leadership that's the issue. It appears to be the actual directors of the games who are missing the mark.

Just take a look at Final Fantasy XVI. It's being directed by someone who openly says, 'Well, people grew up playing games like Call of Duty and GTA 5, so we're taking that into account,' and even went as far as purchasing a Blu-ray box with all seasons of Game of Thrones for the development staff, essentially saying, 'Watch this, this is what's popular now.'

Now, compare that to something like Baldur's Gate 3: A game developed by a much smaller team with only a fraction of the development and marketing budget that FFXVI had. It's made by developers who are passionate about creating a game they want to make, staying true to the franchise it belongs to. They clearly don't give a fuck about what the Call of Duty or GTA bro's want. Baldur's Gate 3 is selling way, way more than Final Fantasy XVI will, and it's not even close.

One can't help but wonder if someone at Square Enix is observing the way this small, hardcore, slow-paced, very turn-based RPG is gaining massive popularity and completely wiping the floor with their latest focus group-tested designed installment in one of the largest RPG franchises in the industry, and question if their approach has been the right one.
 
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Gobjuduck said:
"Square Enis will focus less on mid sized games amd more on AAA titles."

so, they will focus less on their actual good games? their AAA efforts have been weak for years.

the writing is on the wall. Square needs new leadership bad.
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they just got new leadership lol
 
Rykan said:
He didn't forget that, it's just not that meaningful.

If a product costs 300$ to make, it doesn't mean that it becomes successful the moment it makes 301$ in revenue.
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Now I don't know the accounting standard they use in Japan, but if it is anything close to common gaaps the exclusive money which they initially thought Sony wrote an extra 0 on would be deferred over the exclusive period (6 month iirc?) in which this quarter only covered 9 days of so there is going to be more than just $1 coming in.
 
There is zero doubt that SE is disappointed in FF16 sales. I don't know why this is so controversial. The minute you start making concessions like "bu bu PS5 users base, etc" you know it's over. FF16 was positioned to be Final Fantasy's new break out hit. The game itself was dumbed down to the point where a drooling idiot could trip themselves through the story. All of those years, all of that compromise and didn't even reach the heights of FF15.

Did it make its money back? Seems like it. But SE didn't make FF16 to merely break even and snag some profit off the tail end. They wanted a God of War 2018/Ragnarok moment and it didn't happen.
 
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Interfectum said:
There is zero doubt that SE is disappointed in FF16 sales.
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There's a corrected tweet and an earlier PR wire that literally says otherwise but whatever floats your boat my man.

Main loss-leader is mobile with seasonal MMO drop on top of it.

In fact, so far a lot of people (and one sore Bloomberg reporter with dreadful track record) are trying too hard to frame FF16 as a flop. God knows why.
 
ShaiKhulud1989 said:
There's a corrected tweet and an earlier PR wire that literally says otherwise but whatever floats your boat my man.

Main loss-leader is mobile with seasonal MMO drop on top of it.

In fact, so far a lot of people (and one sore Bloomberg reporter with dreadful track record) are trying too hard to frame FF16 as a flop. God knows why.
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It's not a flop, but it's definitely not what SE was hoping for. The game's design, the marketing, everything poised it to be a break out hit. It was not.
 
Don't worry. The FF16 core mechanics and story is ready.
Now they will make another 4 spinoffs named FF16 Interlade, Intercourse, Reunion, The Last crystal like FF7 to make up the costs.
 
Zheph said:
the game already got its costs covered
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I'm sure SE just wanted to break even with the game...

I think it's pretty obvious they would have done major numbers with at least a PC release. Baldur's Gate 3 is taking advantage of SE's stupid decision and making all the $$$.
 
SEGAvangelist said:
I'm sure SE just wanted to break even with the game...

I think it's pretty obvious they would have done major numbers with at least a PC release. Baldur's Gate 3 is taking advantage of SE's stupid decision and making all the $$$.
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If its anything like the garbage FF7 Remake port on PC they can keep it, PC deserves great games like BG3, not lazy shovelware.
 
Sounds like FF16 did good.

Unfortunately nothing else did anything. Mobile, Browser, and MMO all down.
Does operating income include FF7R-2 development costs? Or are they only added in once the game has released?
 
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Raonak said:
Sounds like FF16 did good.

Unfortunately nothing else did anything. Mobile, Browser, and MMO all down.
Does operating income include FF7R-2 development costs? Or are they only added in once the game has released?
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Yes! The Operating income includes FF7R-2's development cost. 100%.

Kakax11 said:
Good luck with that if it's not on Switch
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So you think FF16 will stop selling 6 weeks after it's been released on the PS5? You think FF16 needs the Switch to sell more games already?
 
mckmas8808 said:
Yes! The Operating income includes FF7R-2's development cost. 100%.
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And you know this to be the case, how?

Interfectum said:
There is zero doubt that SE is disappointed in FF16 sales. I don't know why this is so controversial. The minute you start making concessions like "bu bu PS5 users base, etc" you know it's over. FF16 was positioned to be Final Fantasy's new break out hit. The game itself was dumbed down to the point where a drooling idiot could trip themselves through the story. All of those years, all of that compromise and didn't even reach the heights of FF15.

Did it make its money back? Seems like it. But SE didn't make FF16 to merely break even and snag some profit off the tail end. They wanted a God of War 2018/Ragnarok moment and it didn't happen.
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It was never going to happen. And it wasn't because it was only on PS5, and it wasn't becayse it wasn't turn based or whatever.
 
HeWhoWalks said:
I see we're back to the game did bad and Square is disappointed.
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heritage_decl-03398-tetiere_2_2.jpg


(cheeky edit fair play tho)
 
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