Square Enix restructuring as Tomb Raider and Hitman sales fall short

Developer and publisher Square Enix has changed its positive predictions for the current financial year from a healthy profit to a crippling loss, and announced plans to bring in expensive reforms and restructuring. Sleeping Dogs, Hitman Absolution, and Tomb Raider all failed to meet high sales expectations.

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oof461310d ago

It's amazing how Sleeping Dogs, Hitman Absolution and Tomb Raider are expected to sell 1.75 million, 3.6 million and 3.4 million copies respectively by the end of March and they are considered failures.

zeal0us1310d ago

SE set their sales expectations way too high. They should be satisfied with the sales figures. This almost remind me of Capcom not being satisfied with RE6 sales even though it sold millions. Not only Capcom but EA was unsatisfied with Deadspace 3 sells even though DS3 sold millions as well.

Companies these days really need to lower their expectations some and learn to be satisfied with what they got.

first1NFANTRY1310d ago

I agree, last gen during the ps2 era when a game sold 1 mill it was considered a major success. All of a sudden companies expect to do cod numbers? sorry not gonna happen.

Especially in these times where gamers vote with their wallets. A great game will sell. If it doesn't then devs need to start asking themselves what they did wrong and how to better their next project.

Oh and Microtransactions and a price increase in games will only make things worse for them.

amaguli1310d ago

It's not just high expectations, but also really high budgets. The average triple a game today costs $20-$25 million to make, whereas last gen it was around $1-$4 million.

abzdine1310d ago

these sales numbers or expectations dont come by luck because someone decided to be that amount and not another, there are quite complete tools to prevent and expect things like this based on the market shape, the product, development expenses, the nature of the product... There is an averagee xpectation which is the ones they are giving and they also have a minimum expectation they HAVE to reach to stay alive and they apparently didnt reach it.

It means, as i wrote below, that their whole politic of focusing and relying on western titles is rotten and they have to revive their BIG names that used to sell like hot cakes 10 years ago

MikeMyers1310d ago (Edited 1310d ago )

It just shows how expensive making these games are now including marketing. I imagine when Tomb Raider first came out the team behind it were much smaller and advertising cost much less.

It's no wonder why they create DLC and other online incentives to try and get more money out of you.

AKS1310d ago (Edited 1310d ago )

That figure was also qualified by the phrase "Excluding digital sales...," which is how I bought all 3 of those games.

Squeenix has the highest salaries of any publisher of video games.

I'd like to see what proportion of those hefty salaries is going to the top few executives.

Agent_hitman1310d ago

I believe it has to do with the production cost.. It didn't meet the sales expectation.

Outside_ofthe_Box1310d ago

***"It's amazing how Sleeping Dogs, Hitman Absolution and Tomb Raider are expected to sell 1.75 million, 3.6 million and 3.4 million copies respectively by the end of March and they are considered failures."***

Wow that is amazing, especially TR. TR came out not to long ago and is expected to sell 3.4 million by the end of March and yet it's still under expectations? How much did they expect it to sell? 4 or 5 million in mere weeks?

SE needs reconstructing alright... reconstructing their ridiculously high expectations that is... I'm not even going get into JRPG side of things lol.

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AusRogo1310d ago

Both are great games and sold decent! Not every game needs cod numbers. ..

creepjack1310d ago

The bottom line is, if those sales numbers aren't high enough to sustain business, then they do need a major restructure. Most companies would LOVE to have numbers like those. There has got to be a whole lot of mismanagement going on.

abzdine1310d ago (Edited 1310d ago )

Square relying on western games to save their asses, this is the thing i would never imagine 10 years back.

Now that bastard wada is out, they MUST use phoenix feathers to revive their top J-series.

Give us a Secret of Mana on Vita, release FF Vs13, sign an agreement with Level-5 for a new home console Dragon Quest, make a next gen Parasite Eve in the same spirit as the first two, stop pulling their pants down everytime MS signs a paycheck to get exclusivity, we can all now see this practice didnt bring them any good, especially when you realize how poor their big franchises became.

They came to the point where a FF just by name doesnt sell anymore because people dont buy a FF blindly like they did some years ago. We need real proofs of change, and we, oldschool fans, will follow and be happy to help

Blank1310d ago

Damn nice comment but its a shame square enix dont listen to people like you when they really should you got an intelligent bubble from me

StrongMan1310d ago

Tomb Raider and Hitman co-op coming up!

99% of multi plat games don't sell and the 1% that do sell don't sell enough to make any money. This is a problem.

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