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Submitted by kythlyn 629d ago | opinion piece

Square Enix Part 2: How the West Was Lost

The success of Sleeping Dogs, Hitman: Absolution, and Tomb Raider--which should be a cause for celebration for Crystal Dynamics, IO Interactive and United Front--can only be marred by the news of their success being tied so closely to words and phrases like “weak”, “failed to meet targets” and “extraordinary loss.” (Hitman: Absolution, Industry, PC, PS3, Sleeping Dogs, Tomb Raider, Xbox 360)

whamlollypop7  +   629d ago
I think that companies need to chill out. That and if the cost of making an AAA is so high that their is no profit, then that business model is broken. That and I think that Tomb which was only released on the 16th has sold over a million. This could be more of Square-Enix freaking out than anything else. Major corporate restructuring is underway.
Pyrrhus  +   629d ago
Give the consumer what they want and perhaps they1 would not have such 'disappointment' across the board. I feel Squenix's subpar performance towards the start of this generation has finally come to **** them, especially with many of their core fanboys losing their trust in this once mighty company.

Its just sad as the 3 games stated are essentially really good and deserve the larger sale values afforded to other games (but Squenix might have had their expectations too high). Not enough credit is given to EIDOS in my opinion.
#2 (Edited 629d ago ) | Agree(1) | Disagree(0) | Report | Reply
hollabox  +   629d ago
Its funny how Square Enix set high expectation for western developers regarding sales targets, when their own Japanese developed games sale much less they praise their sale numbers. FF13-2 Didn't even hit 3million combined sales for the PS3 and Xbox 360 and its getting a sequel. With the exception of Kingdom Hearts 2 on the PS2, no other game in this series hit 2 million sold, but yet no complaining from Square Enix Japan. Dragonquest is the same way, with the exception of DQ 8, no other DQ has hit 2 million units sold, that's ok, here's another sequel and no complaining form Square Enix Japan regarding sales target.

Like the article says, most companies will kill for those sale numbers, so I don't know what the problem is with almost 9 million units sold and counting. It's probably good the CEO is stepping down, they need an western thinker with new ideas rather than a prune stuck in his ways and tradition.
SleazyChimp  +   629d ago
I just don't see where these games incur so much cost in develpment. I mean James Cameron's Avatar cost 300 million to make, that's shooting on location around the world, paying actors a large chunk, logistics, all the cg special effects, editing ect. If you think about it 300 mill bought a hellva lot. So how is it these games are getting in to the 100-200 million in development costs when they can't possibly have the same amount of overhead a movie like Avatar has? You can't say its marketing and promotion either, because a blockbuster movie has the same, if not more, cost figured in to the budget. I would really like to see a cost break down of a AAA game. What they paid their artist, programmers, and designers. What it cost to develop an engine, or license one. I'm not talking a pie graph that shows portions paid to retailer and platform holder ect. I want to see actual dollars spent and where. These companies are either throwing money around recklessly or we are being lied to, because this just makes no sense. I don't think these games are not making any money, it just not "enough" money for the greedy corporations.
#3 (Edited 629d ago ) | Agree(1) | Disagree(0) | Report | Reply
hollabox  +   629d ago
Well if you think about it, they are paying 120 plus people a salary ranging from $37,000 to over $100,000 depending on their role over the course of 2-3 years. Lets say the average is around $70,000 a year per employee times two-3 years, this equates $16.8-$25.2 million over the course of development. This does not include the cost of R&D, outsourcing art work, CGI FMV movies, voice actors, motion captures actors, and advertisement.

Most movies are shot in 2-6 months and are salary based for the whole duration of the project. A list actors get $5 million, B list actors get $800,000, C list actors get $30,000, and extras might get $100 a day. CGI post production can be controlled as well. Good CGI companies typical charges $1million per minute of film, newer CGI companies charges much less. Movie companies just have to order how many shots they need in CGI, how long will each shot take, and the cost per minute of CGI. Video game companies have to pay for hours of CGI over the course of years.
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nikrel  +   629d ago
I think the $$$ need to be put to the side and they need to ask themselves why has X amount only sold, what did we do wrong, how should we have done this.

For a multi-platform game to only sell a few million something is a miss.

Money will come if the product is there.
N2NOther  +   629d ago
Thanks for taking the time to read the article.

Unfortunately we don't know the production budget of Tomb Raider but there are also marketing costs which need to be recouped. Either way, if the game selling 3.4 million units in less than 4 weeks is below expectations, clearly something is wrong with that business model.
#5 (Edited 629d ago ) | Agree(1) | Disagree(0) | Report | Reply

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