That's according to Square Enix's worldwide technology director Julien Merceron, who told GamesIndustry.biz that the platform holders' decision to hold off on releasing new hardware has helped facilitate the emergence of powerful new rival platforms.
In a town hall that took place on Monday, Square Enix president Takashi Kiryu reportedly confirmed imminent layoffs in the U.S. and Europe.
@Outside_ofthe_Box,
So that Microsoft can close down the studio after doing nothing with them? Right...
Sad but true. It's the consequence of a shift in player habits, massive overhead, and out of control budgets across the industry.
What did NA and EU did anyways? Just translate or something? I would say it might help them get back to there roots but DK.
Actually, you are correct they play a hand in localization especially in Europe with the many languages. That and marketing.
Square Enix is shifting its strategy to aggressively pursue multiplatform releases and focus on quality over quantity.
Yup, it's official. FFXVI and FFVII Rebirth didn't sell as much as they expected.
- 1% increase in net sales compared to a year with Forspoken and Octopath Traveller II, which didn't sell more than 3 millions combined (and I'm being generous).
- A 38.3% decrease in operating income despite the release of 'High-Definition' titles namely FFXVI, FF Pixels Remaster, Dragon Quest Monsters, and FFVII Rebirth.
- Aggressive multiplatform strategy one year after saying that exclusivity with PlayStation was mutually desired.
Sure, it's all in my head.
Probably for PC and the upcoming Nintendo Switch 2. Square Enix games doesn't sell to well on Xbox
Square named Drops Xbox as part of their multiplatform approach in their quarterly reports.
Like it matters MS will probably find away to close them down to.
I can see them going for PS5/Switch/PC for the most part, it'll mostly likely be the Switch 2 by the time their next game enters development, which is probably a good thing since the Switch is struggling with 3rd party games. If they're hurting for money/sales, I don't see them bothering with Xbox, that's just wasted time/money for them.
I mean, maybe? They'll want as much as possible and I figure they could have been hoping for greater impact on PlayStation, but that's good reason to reflect and realize the resources and development cycle of these games aren't very sustainable. The solution is to make more affordable games with shorter dev cycles, then once in a while bring out the big guns.
I think Final Fantasy VII Re make and Rebirth would do really well if it was multiplatform. Specifically, if Nintendo gets their hardware up to snuff, and the rumors are promising. I don't really have much faith in its performance on Xbox, but Nintendo gamers really commit to buying their games. At one point, Breath of the Wild for Switch outsold the Switch itself.
Granted, Zelda always solos everything except GTA, but Nintendo folk are avid Final Fantasy fans. I think it would do exceptionally. Nintendo just needs to make porting easy and inexpensive and they'll get more games.
I don't think the exclusivity hurts them as badly as they think, I think it's a range of factors, like the quality of the games, high sales expectations, ESG/DEI, censorship, development costs/time... I also suspect that Square-Enix is extremely inefficient with their resources, they struggled/avoided towns in the FF13 trilogy, and FF14 was mostly wilderness with little to do apart from derp about in the wild (they also avoid towns and making a lot of characters there too). But FF14 also went through development hell, I think Square-Enix just needs to overall how they do everything, because the way they manage that studio just isn't working.
The two most profitable games for them didn't sell as much as expected. Yes. Make it make sense.
Square finally realized what Sony figured out recently, their installed base is not enough. We are going to see a lot less exclusives from everyone moving forward.
Hopefully the next Nintendo system isn't a potato and it can contribute to FF sales in future as well, in addition to PC releases. If this ensures the long term health for SE and franchises than like FF and KH then I'm all for it.
Adding Nintendo and PC customers is the best way to increase sales and long term success. Not going to get that from Xbox.
Hof,
You must not have heard they are launching new hardware and have already committed to a Next-Gen Xbox.
But, for some reason, I think you already knew that and wanted to spin a silly narrative; besides, why wouldn't they release games on the SX/SS? You do know these consoles will still be here, right?
Optics. They have a STATED plan to do so. Thats not commitment. The shareholders and board are calling the shots now. Lets see if they have the appetite for hardware because they are owed 80 Billion Dollars already. Investment in hardware, R and D and marketing is how much again? That cost with the history of their hardware performance....at most maybe a handheld. What I am certain of XBOX is finished, the writing has been on the wall before the studio closures. Its MS Games and they are not hardware. They are software because MS is a software company. Expect them to be folded in the Surface team.
*hardware
I believe they committed to hardware.
I hate to nitpick, but that's kind of the company they are. You have to.
@hofstaderman the board and shareholders have always called the shots or had a huge impact on decisions.
Xbox finished lmao, the writing has been on the wall? mate they just spend 70 BILLION dollars, and you see the writing is on the wall that they're done. 0 idea what you're talking about. They grafiti'd on the wall and you still can't see it.
"They have a STATED plan to do so. That's not commitment."
Huh? What are you talking about? They announced they would be unveiling new Hardware this holiday season; how else are they supposed to commit to it?
" Lets see if they have the appetite for hardware because they are owed 80 Billion Dollars already"
What a silly statement, you think this deal was approved so they could make 80 billion in less than a year? This is a long-term commitment, a future-proofing of profit.
"What I am certain of XBOX is finished,"
No, you are not certain of this lol; as you stated, if they make even a Handheld in the form of a Steam-Deck that can dock to a TV/monitor, wouldn't that be just changing the form factor but still XBOX?
Closing these studios has really got you guys delusional; that is what happens in companies, in a changing market: you acquire, and you trim; like it or not, that is the way things are done. Lets look.
Where is the new Psygnosis with a new wipeout?
What happened to Japan Studio? Pixl Opus? London Studio?
Where is Zipper Interactive?
I can list more, but you see, closing devs doesn't mean your company is finished, especially when you have like 30+ dev teams.
They won't be unveiling the hardware this holiday season it will be like the series x and s they got a tease at the game awards 2018. But no details until year of their release in 2020 lol
Please tell me the Dragon Quest III HD-2D Remake is still coming. I feel like I've been waiting forever for that game.
i think the juggernauts kingdom hearts (disney provides the money for that one) final fantasy and dragon quest are fine, the rest not as much
I'm kinda worried about the future of DQ though, Toriyama and the composer both passed away. Huge blow to the franchise.
@Michiel1989,
Akira Toriyama had an understudy though, he emulates his style, so maybe he'll do the art for Dragon Quest games, I would love to see Nobue Uematsu do music for the series though, that could be fun if they could convince him.
I'll be so p*ssed if that doesn't go ahead, also, where's DQ12 at? They've been silent on that for so long, and it was announced years ago.
@gold_Drake,
I'm pretty sure they can siphon some profit from A Realm Reborn to keep FF and Dragon Quest going too. I think the company would have gone bankrupt if it wasn't for that cash cow.
Another sign that dedicated consoles market is in trouble, while PC seems more and more attractive to big publishers.
Having a good gaming PC and a PS5 myself, given current trend form both Sony and MS I am less and less playing on PS5, waiting for exclusives to release on PC, so I understand the logic behind the new strategy.
Ants,
I get that we don't know exactly without numbers, but come on, man, we can clearly see what's happening.
The console market has not grown much, the highest-selling console in history is still the PS2. You can play the " prove it" game all you want, but Sony's more aggressive PC push, SE completely rebooting their company/business, after being mainly exclusive to one console and showing a sizeable profit loss is telling.
PC is a high seller, and your doubtful PS5 dominant stance does not change the clear writing on the wall, straight from Sony's mouth, that they need to be, and will be more aggressive in the very lucrative PC market.
So, in other words, PC market is indeed looking more and more attractive to Pubs.
@730
Numbers?
I'm willing to bet the farm that ¨PC gamers are not the dominate number compared to console, but I don't know because I don't have numbers. However, the price point of entry can allow us to infer what I had just stated.
What an ironic thing to say on a link-agreggate site like N4G. Explains your comment history perfectly.
asks for numbers. receives numbers and then continues to say I don't wanna click a website (because it might shatter my illusion)
@All the people with that good 'ol folk wisdom
It's ironic how I clearly asked for the site and people still can't even answer this simple question.
Tell me how many people click on random links on forums?
Tell me the site and I will look. I don't mind being wrong and I'm barely intelligent enough to change my mind with something substantial.
All the numbers I have seen is that PC doesn't even come close console gaming in revenue, and nothing touches mobile gaming. More people touching something doesn't mean anything. It just means more people own PC for work and touch Steam every now and again, those numbers mean even less.
From what I can ascertain PC is a smaller market than PS. There are occasionally times when PC looks to be stronger but overall it's still behind.
PC also has a lot more competition, especially when people can easily buy and play older games from 20 or so years ago on it.
Final Fantasy VII Rebirth publisher Square Enix has declared a $140m loss based on a shakeup of its internal development pipeline.
What are they doing over there? Sounds like they canceled something big. I read a rumor a while back about ff9 remake . Here "Final Fantasy IX has gone through a very challenging development, the game is still in progress but may undergo changes drastic enough that we won't hear about it for a couple of years."
This could be one of the reasons if the rumor is true. That was Silknight i don't know how credible he is but it's something and it would make sense.
I hope IX is still on the cards
Just a straight up remake which they expand a little bit nothing over ambitious
If IX dosent happen then VI and VIII will never be thought of.
What are they doing? Sales are falling and the costs are out of control. Big releases need to be absolute sales home runs now, and Final Fantasy sales have stagnated.
Now we know why Square didn’t fall over themselves to remake the original FF7 all these years ago. It certainly wasn’t a license to print money, at least not with what the expectations were. Each of these full on remakes drains an enormous amount of company resources for a razor thin profit margin.
They lost the magic in the remakes. And the story is incomplete. The original FF7 is still way better. The Remake / Rebirth are just fan service. Like an Anime/Manga with "optional" filler content. FF7 had pretty much zero filler, it was paced extremely well, and still today flows much better than the grindy story and spongey enemy battles in the remakes.
If they released it at once on all platforms, they would have made all of their money back. Could have been on to an FF8 or 9 remake. Ready to cash in again on nostalgia like Capcom. This is their fault for trying to milk the title.
Once I head they were breaking it up into parts, I lost all interest.
I hope people understand usually when a loss is declared it means a game which had been in development got cancelled. For example Sony Santa Monica before GOW-PS4 had cancelled a project which Sony had spent 7 figures on
As far as square is concerned they release a bad game once a year. Forspoken anyone?
For those making comments on remake not selling well, I hope y’all realize that Sony is the only reason this remake is happening. If Sony didn’t fund it the remake wouldn’t be happening. Just like Konami didn’t want to remake SH2 because development costs of 100 plus million
I'm waiting for them to release the complete edition bundle, but it's definitely on my list.
Not rocket science. Compare sales numbers, development cycles, and budgets to the previous gens. We are all collectively burning up the industry from the inside out. Expectations are ludicrously high now for every release and sales are dropping for even the most prestigious of series.
We used to be satisfied paying $50-60 for a game that took 1/100th the budget and staff to make. Now gamers feel cheated if they have to pay the same for a game that took 100x the budget. We may be reaching the end of the line for this model of gaming.
@tiredgamer I think your point is one that ppl don’t understand and you hit it on the nose .. some gamers don’t want to take accountability but it’s some of the gamers fault the industry is where it’s at .. we as gamers set the standards for the industry not the shareholders , ppl forget that the shareholders and the industry want and need OUR Money. Both the Xbox and PlayStation are seeing a drop in hardware , the industry is very stagnant right now.
Speaking to Square:
Turns out their mismanagement wasn't related to the western studios they dumped to Embracer, but their own fault.
With regards to Xbox - a good way to kill your brand is to pull support on high quality titles and only dump B and C-tier titles to it
With regards to PC - Epic Games Story exclusivity for any duration and piss-poor optimization will hurt you.
With regards to FF Pixel Remasters - y'all messed up by barely releasing them on physical, like wtf that was free money!
And lastly, you don't help a franchise by releasing a mainline title that undermines every title that came before it. FFXVI was a DMC-like with bottom-of-the-barrel side quests and I can't imagine that helping Rebirth at all considering its marketing is directly tied to how big that game is.
Sony is getting their best titles and with the most polish, so what about it? Nintendo gets their top properties too, for titles that can run on Switch hardware.
It's the other fanbases that get the second- and third-class treatment from Square. If that's due to agreements with Sony, that's not a Sony issue but a Square one for accepting those terms. Sony is doing its best to look out for Sony.
The industry implosion is continuing. Sky high budgets, prolonged development windows, stagnant sales numbers, and falling currency values (inflation) are wreaking havoc on the legacy industry. AAA games will slowly become the rarity.
Oh I’m with you. What’s worse is they can say, “Well we tried to make this amazing game and spend all this money on, but not enough people showed an interest. So no more of these since we can’t take a hit like that.”
The industry is going to take a dramatic shift. Mark my words on this.
I think there is quite a large portion of individuals like myself who held out on buying it on PS5 because I can get it on PC eventually. To be able to mod the game and also have custom graphical settings to my liking
same
but im not sure if it matters at all. im sure they made sony pay a hefty sum for the 3parter to come on ps5 exclusively. so watever they made in sales, might have come bk in profits for square, but i dont know
and we dont know what "underperformed" even means for square.
Final Fantasy Verses XIII still isn't out.
Square (Enix) - Biggest mistake ever.
Says the company that has a game that they announce before this gen started that still isn't out yet. Given Square Enix Japan's console output this generation, they have no place saying this generation is too long. They've barely released any good HD games.
Oh, another reason not to give a damn about what Square thinks? I'll take it.
What an utter load of crap.
"This generation has been way too long, and I say this because you have a lot of developers that work on a new platform, and perhaps will not succeed, so they will wait for the next generation, and will jump on that platform. You could not do that with this generation though. So these developers went elsewhere to see if the grass was greener."
With that kind of attitude they're gonna be jumping around like frogger anyway, regardless of new hardware. So, they want better hardware yet he only mentions browsers and iOS as the emerging greener grass.