Square Enix Games is SCREWED...

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Square Enix has revised its approach to PC and console game development, and absorbed ¥22.1 billion (approx $140.9 million) in what it calls “content abandonment losses.”

In a warning to the investment community, the Japanese company said it would recognise the extraordinary loss for the fiscal year ended March 2024.

This is the result of a change in approach to Square Enix’s development of what it calls HD video games (PC and console, as opposed to mobile and MMO). In its note, the company said it wants to be “more selective and focused in the allocation of development resources”, and as a result of the “close examination” of its development pipeline with this in mind, is taking the multi-million dollar loss. Square Enix did not name the canceled or rescoped in-development titles.

[way-rppi]

Forspoken was a disaster for them. Spent millions making it and it flopped massively

[moonjellykevin]

It's time to break that glass case that says "In Case of Emergency, Re-Release Chrono Trigger" . . .

EDIT: I'm well aware of the legal nightmare it might be. Also, I did say "re-release" and *not* "remake."

[sheriffjbunnell]

Having one good poop a day is better than having lots of watered-down ones.
SE needs to adopt the same philosophy for game development.

[tencheenian]

i just hope that square enix can finish the ff7 trilogy before bankrupt...

[piyoweb]

Well, time to add season pass, NFT, block chain, battle pass, mtx, loot boxes, LIVE SERVICE to every single SE games.

Remember, their CEO still believe in NFT....

[TheCmurley]

I don't think spending $200M+ (apparently the estimated cost for Rebirth) is needed on even the best games. Budgets are so out of control. Not every game needs bleeding edge AAA assets, celebrity voice-actors, and absolutely absurd marketing campaign expenses.

[MatrixAlphaCWX]

PS5 ONLY MOVEMENT is what caused this disaster of sales.
PS5 playerbase is way LESS compared to Xbox One/S/ONE X/PS4/PS4 Slim/PS4 Pro.
Should of planned the entire Trilogy on PS4 and Released on Xbox Aswell.
With options to upgrade to PS5 Versions in the future, if you upgrade to that console later.


Slapping a middle part of a trilogy on a completely different system was a mistake, expecially when the older consoles playerbase is millions more than the PS5.
And then saying the next one will most likely be released on the PS6 will also be a mistake.

[onlyposting]

Why ?
Why do these companies keep borrowing billions, from Blackrock & friends, even when they spend, eg, 80 millions on a game, and make 700 or 800 millions ? Why ?
There's one single reason, for that. It's called:
Shareholders
A studio that spends 100 millions in a game, then, makes 600..700 or 900 millions, that studio should then have enough cash, to 'stay afloat', and to spend another 2 or 3 years developing a new game, with those un hundreds of m millions they have made, right ?
WRONG
The leeches, the vultures called shareholders, and the admin board, they swallow ALL the money... over and over and over... and that studio finds itself having to borrow more and more money, that, of course, will have to reimburse.
And because those vultures always want more and more money, games must have ebb more microtransactions, more season passes, more skins, more everything!

Let's say Days Gone sold 8 million copies. Even if the studio only made 30 bucks on each sale, that's 250 millions. Well, 250 millions, should have been more than enough, to make days gone 2, + a new title. But no !

Yesterday, shareholders wanted some game to make 700 millions in the first 48 hours. Then, another game must make 950 millions. Then, 1.2 billions. Then... 1.4 billions.
At that pace, one day, a game will make 2.5 billions in the first 48 hours, instead of 2.6 billions, and the shareholders will call it a major flop, and the studio will have to fire 1000, 2000.. or 3000 employees!

Money, money and more money.
And just like we all know, anything those capital/hedge/investment/ venture companies do touch, ends up dying.
The moment those blackrock & friends started approaching the gaming studios and publishers, by 2007, when they noticed games like candy crush were making hundreds of millions on iphone, it was basically OVER.
Is just a matter of 1 or 2 years, before another crash.
Video games are about love, passion, devotion.... when we add greed to the recipe, it's over.
Some ceo just farted ? Bam, 2000 employees must be fired. A game only made 600 millions, instead of 650 ? 900 employees must be fired. Some game dlc didn't sell enough copies ? 500 employees must be fired !
These investors, like blackrock, have absolutely no problems, no scruples, no moral, no respect, no remorses, whatsoever, with firing 2000...5000.. or even ALL employees, and completely shut down a company ! They absolutely don't give 2 fuks about that.

[darkcity]

PS console exclisivity is the blame . PS5 doesn't have same engagement as the PS4. Squares biggest titles should be day Multi console and PC day one

[murr]

No more PlayStation exclusives they learned their lesson…

[samuraiedge]

The truth is that it hurts me to see Square Enix in this situation, they were the developers of my favorite video games; but it's also understandable when you see that they spent a fortune on crap like "ForSpoken".

It is also true that they missed a "golden opportunity" with Final Fantasy VII REBIRTH, it is a very good game to be an exclusive for PS5 for a year.

[MavethTheReaper]

Honestly over console wars, it's helping noone, I love Square Enix, but console exclusivity is archaic and dumb, release games everywhere

[tylerdurden]

Serves them right for their hubris of thinking they could change and tamper with the ff7 story

[ReviewerFirst]

It’s because they are stretching a game that should have been one game into 3 freaking games

[jboogie]

Star ocean 2 a very niche series sold really well and it wasn’t an exclusive it caught SE by surprise… exclusives are not cutting it nowadays.

I don’t understand why we haven’t had a chrono trigger re release… that will sell more than FF7 reunion

[DewaHuang]

Square Enix report: we release too many flop games, they all barely sell 500k copies. We should change our strategy

People: haha its because of Final Fantasy sony exclusivity

[Aragorn]

*"So, let me get this straight. I’m somewhere that’s not what I would call Earth…I’m seeing freaking dragons, and…oh yeah, I’m talking to a cuff!"* 😬😬😬

[bcz]

back in the 2010s Capcom was in the same situation and look at them now. Square can turn it around but they need to act now

[jckorn]

Getting FFXVI and FFVII: Rebirth within a year of each other is INSANE.
I love all the stuff they're releasing but they really could scale back the amount of releases and be just fine.

[michaelmartinez]

That's cuz playstation fanboys don't buy games there is your proof lol