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Nintendo Tells Square "Never Come Back" After Fallout Over Final Fantasy VII

At one point in time, Nintendo and Square were synonymous in the video game industry. Square had released many of their biggest RPG hits on the Super NES like Final Fantasy VI (or III in the US) and Chrono Trigger. Square was loyal to the Big N in the early to mid 90s until Final Fantasy VII came along.

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naruga462d ago (Edited 462d ago )

...and future justified the instincts of Square ...now Ninty is on the risk of getting out of hardware business denying to be more open and evolve while Square materialized a nearly mythic game which people cry to see a remake and is doing fine

Neonridr462d ago

risk of bankruptcy? Please tell me you are joking... They have billions in the bank.

there are rumours that the remake will be on Switch too.

_-EDMIX-_461d ago

I don't think they're at risk of bankruptcy but I don't think you understand how much money it actually costs to roll out a platform that fails...

They actually for a fact financially cannot afford to continue having feeling platforms literally this platform and possibly one more could possibly literally bankrupt this company more than you actually realize.

You're talking about money in research and development and marketing and in game development that they never actually get back if the platform fails

DarkZane461d ago

@Neonridr

People can come up with all the stupid rumors they want, but it doesn't change the fact that Sony published the original, which means it's gonna be PS4 console exclusive forever because you can't remake something without anyone involved in the original being on board.

Plus even if they could release it on another platform, the Xbox One won't get it because it won't sell and the Switch is already confirmed to be a lot weaker than the xbox one and PS4, thus wouldn't be able to run the game.

hellothere1977461d ago

@edmix

funny how you quip about neon not understanding something. you have any idea how much money is generated with just ONE BILLION dollars of cash nintendo currently sits on? do you? it's a sh!tload per annum. their R&D staff are made up of regular employees they have on bankroll at any given time. they aren't like Apple where their money is put in a bottomless sink hole to develop advance future cutting edge tech. you can see that in their consoles. nintendo is successful and will remain SOLVENT pretty much forever, because they arent stupid to bleed money with risky ventures.

why do you think there is a constant shortage of nintendo games/consoles/merchandise??? it's because they only produce a safe number of items to realistically sell and not lose money. you peopke complain about shortages and nintendo "doesn't know what they are doing...blah blah blah. if they did things the way many of you idiots suggest, they would end up like THQ and their millions of unsold peripherals (which incidently help bankrupt the company,) or the countless other studios shutting down because of poor financial decisions and risky/expensive game developments.

please, for the love of allah, go take a few courses in business before opening your mouth.

Armyntt461d ago

What is nintendos overhead? And all operating costs? Whats their margins? Same could go for Sony and Xbox(not ms as a whole). There is more to the balance sheet than any dollar amount. I don't think people realize how close to folding all these game divisions are to bankruptcy. Not necessarily anytime soon but literally one or two big hardware fails from any of the big three could bankrupt them. I'm not posting links to prove a point, if u care to disagree google is your friend and will point you in the right direction.

kowan461d ago

Nintendo is doing fine but FF7 remake on the Switch? Now that's even more ridiculous than Nintendo going bankrupt.

BlackTar187461d ago

neon

Where did you hear this rumor?

ABizzel1461d ago

Just because you have plenty of money, does not mean you can't file bankruptcy. Filing Bankruptcy allows you to discard or make proper payments towards debts. It doesn't mean you don't have any money and you're broke.

A business or corporation does so to liquidize or reorganize the company without incurring more losses in the process.

Which fits Nintendo's position perfectly if the Switch turns out the flop like the Wii U (which I seriously doubt will happen).

BROKE does not mean BANKRUPT

Sunny_D461d ago

@Darkzane

That isn't how that works. The trailer of FF7 remake already said it "coming to PS4 first" implying that it will come to other platforms. Also, the original FF7 came out on the PC before as well.

Angeljuice461d ago (Edited 461d ago )

@Hellothere

You are aware that Apple is THE most profitable company in the world aren't you?
That is profit, not turnover.

To say that Nintendo doesn't do business like Apple isn't a complement at all. Every company wants to be as profitable as possible and Apple leads the World in that respect.

Your comment is naive to say the least.

" please, for the love of allah, go take a few courses in business before opening your mouth."
I suggest you practice what you preach.

_-EDMIX-_461d ago (Edited 461d ago )

@hell- it can literally cost a billion dollars to roll out a new platform.

You have to add up the cost of research and development and marketing on top of all the games that are in development on top of all the marketing for those games that are even coming at launch.

Now if that platform fails you're not going to get that money back...

Now something like Horizon zero Dawn begin development in 2011 which actually means that Sony was already paying for something regarding the PlayStation 4 before its Public Announcement.

Nintendo believed that they were going to sell 100 million wii u which also leads me to believe that they had a bunch of games in development with the expectation that the platform was going to be successful enough to justify the cost.

You just need to know a little bit about business to understand how this company could go bankrupt if you realize that they're spending lots of money to roll out Hardware that has to be successful for them to meet a respectable return.

I don't think the Wii U gave them that respectable return if you factor in we don't even know just how many games might have been cancelled or repurposed to go on other platforms like 3DS or switch after its failure.

Like I said they believed they were going to sell 100 million which tells me that they also probably invested in lots of marketing and development of titles with the expectation that they would make a return with a 100 .

The reason why I talk about business on here so often is because I actually own a small business lol

Now I don't think this company is going to go bankrupt because I believe the switch is probably going to do pretty good for them but in the respect that the switch doesn't I still don't see them going bankrupt because I believe they're smart enough company to avoid creating Hardware again if they realize they could not get a respectable return.

I believe that in the event of the switches failure they're more likely to go multi-platform and as a software company only.

Like I said before Sony started paying for development of PlayStation 4 games as soon as 2011 with Horizon zero Dawn....

Now PlayStation 3 did not sell 100 million units, the Nintendo Wii did so how many games do you think Nintendo had in development years prior to the Wii U with the expectation it was going to move 100 million units?

joab777461d ago

That's the sad part too. They are sitting on so much cash, and yet many of their moves do not back their supporters. People can disagree, but I am NOT happy about the WiiU and how it was handled at all! Now they expect all of us who supported them to just turn around and trust them again and buy a Switch because they are Nintendo.

Listen, Nintendo is a big part of my life, but they are shady like the rest. Look at how the PlayStation came to be and they are mad at Square lol?

bluefox755461d ago

They may not be at direct risk, but they're certainly not untouchable like they used to be. Another major hardware flop would definitely hurt them bad.

461d ago
Kenshin_BATT0USAI461d ago

Doesn't matter, if Switch fails investors will want to

A) Cash Out,
B) Go mobile software only.

Kleptic460d ago (Edited 460d ago )

@Shin -

A cash asset balance is different than net income, comprehensive income / overall profits, etc.. There are 1000's of reasons for diminishing asset balances even while being profitable. Nintendo was profitable through both 2015 and 2016, despite the Wii U's unanimous crappiness. And overall company financial position (the entirety of the balance sheet) was steady.

Just saying, you can't look at a cash balance and remotely see the whole picture. Liquidity is considerably down right now (probably because of Switch related aspects)...but, it's pretty common for investors of electronics/tech companies to look at extremely high cash asset balances as lazy, meaning it looks worse when an electronic company ends a period with a pot of cash instead of having it invested into something. This specific case is most likely, like mentioned, related to heavy investment into the Switch occurring within those periods.

but even as the Wii U slipped deeper into irrelevance, Nintendo profited more in 2016 than 2015. The issue many are running with is simply that those 2016 profits were considerably under forecasts a year or two ago, as the Wii U flopping this hard was not expected.

The primary thing with this discussion is some people struggling to separate an overall company from a specific product they offer. The Wii U was/is a disaster. Nintendo, as a brand, is as strong as ever. Nintendo could potentially reach a period of insolvency (i.e. consideration of bankruptcy), but almost every creditor would accept it as short term, and adjust claims as needed (i.e. preventing Nintendo from entering bankruptcy). All I mean is, Nintendo isn't at any real risk, pokemon go and that explosion reassures any creditor that they have a hold in multiple markets. I don't know if it's a situation of people not understanding what bankruptcy is (some got it right, it doesn't mean you're 'broke'), or not understanding the flexibility incorporated to certain degrees when a guaranteed entity has a few hiccups.

indysurfn460d ago (Edited 460d ago )

Can't deny Neonridr is right about the money. And last time I checked Square Enix was the only one of the two to get in financial trouble. They almost kicked the bucket over that movie. Nintendo has NEVER dropped below the million...NO BILLIONS cash on hand, and in free cash flow.

Of all the firms that could really spend on losing on the cost of hardware it would be Nintendo. Because Microsoft even though they have more money are not welling to risk losing as much on the video game sector now that they are a major player.

+ Show (14) more repliesLast reply 460d ago
EddieNX 462d ago (Edited 462d ago )

Since that fallout Nintendo has seen massive success as well as a few hiccups. Remember the GBA, the Wii,DS,3DS ? Haters always focus on the negatives. Nintendo has been doing well in terms of software sales and the handheld market.

OmnislashVer36461d ago

Yeah but Wii wasn't a success among gamers, it was a fluke success among physical therapists and soccer moms. Their success wouldn't have carried on for Square-Enix...

_-EDMIX-_461d ago

Business has everything to do with "what have you done for me lately?"

So the success of the Wii is not going to do anything to someone like square if they're unable to produce a game on that platform that actually entices the fan base in regards to the Final Fantasy fans.

That is no different than the situation regarding the PlayStation 1 and the N64 you're basically asking this company to allow their position in the market to be taken over by one of their competitors freely on the PlayStation 3 and 360.

Now that the Wii U failed, what would Square Enix be doing if they really made a Final Fantasy on the Wii? They would basically be screwed because the PlayStation 3 in 360 generation very likely would have had a J RPG that was looking to fill the void of Final Fantasy fans that actually wanted a quality Final Fantasy game.

That is actually why many companies will not side with specific console manufacturers simply based on sales because they also don't want to compromise their position in the market.

The Wii was amazing for one generation what does that do for Square Enix a long-term if they've basically abandoned with the PlayStation 4 and Xbox one generation ,a generation ago?

How do you know that during the PlayStation 3 and 360 generation several Japanese companies could have came forward and fill the void that squaresoft left when they decided to make a final fantasy for the Wii?

Sooooo no.

You might see those platforms as successes for Nintendo but I don't think third parties want to leave their specific markets based on fads.

Where are those ds sales? Where are those wii sales?

So how does that help Square Enix in 2017?

If you really want to help Square Enix you also have to provide Square Enix with what they need to still remain competitive in the market which actually means they need to have the hardware to allow Square Enix to still compete against their competitors I don't really think Square Enix is going to be all too pleased to be releasing a PlayStation 2 looking game on the Wii while their competitors are releasing these amazing life like looking graphics.

I'm sorry but Nintendo cannot guarantee Square Enix longevity in regards to success they can't even provide that for themselves.

Wii and DS sales are not Wii u and 3DS's sales.

PlayStation and Xbox are more consistently successful and powerful enough to meet their needs to stay the best in their Market

dillydadally461d ago

@OmnislashVer36 What gamer didn't have a Wii?

Deadpooled460d ago

@OmnislashVer36

I wouldn't say the wii 'wasn't a success among gamers', some of the best games of the generation were on the wii such as the absolutely superb best ever Mario game/series imo Super Mario Galaxy 1 and 2 (the second is one of the best games I have ever played).

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Dan_scruggs461d ago (Edited 461d ago )

It immediately lets me know the intelligence level of someone who assumes Nintendo is on the verge of bankruptcy/leaving the hardware business/dying (pick one). But much like a Trump voter you can believe what you want.

yeahokwhatever461d ago

Actually, people like you are the reason Trump won. That said, the main reason he won is because Hillary Clinton. Anyways, back to video games.. The Wii U did pretty bad, but to think that means Nintendo as a whole is failing is pretty lame for sure.

461d ago Replies(3)
3-4-5461d ago

* Nintendo has enough cash reserves to fail the next two gens in a row and still have enough money to be fine.

Stop these wishful lies.

Huguinho461d ago

Square did came back to ninty after the final fantasy vii thing, wtf are you talking about sonytard?

461d ago
DarXyde461d ago

Are you actually suggesting that Square has justified instincts? Let's not have a conversation about Square's "instincts".

Kenshin_BATT0USAI461d ago (Edited 461d ago )

whoops wrong person.

LAWSON72461d ago

Oh man, you must have missed the decade long hatred for Square. Besides the small turn around the past couple of years the only big games square was pumping out were those eidos and big western ips/devs they bought. Square has only been fine the last year or two. Ask yourself is a company that can only get that much buzz from a remake of an old game that fine? I assure you can only milk that cow so long, and they know this and are doing a good job now at making games.

dillydadally461d ago (Edited 461d ago )

Actually, I'd personally say it's the other way around. Square is a shadow of its former self when it comes to game design. I can't remember the last Square developed game that I thought was as good or well made as a Nintendo Exclusive. Maybe FFX? I think Nintendo gets a bad rap, but they're still making great games.

+ Show (8) more repliesLast reply 460d ago
darthv72462d ago

Nice little throwback read. They forgot to close it with, eventually Square came back to nintendo in force with all sorts of games for the DS, 3DS and Wii / U. There is likely to be some switch games as well so obviously the two put aside their differences.

Like the saying goes, time heals all wounds.

Neonridr462d ago

yep. This story along with the SNES-CD addon which would eventually become the Playstation are two of those what-if moments in history that make you wonder what would could have been had things played out differently.

gangsta_red461d ago

In an alternate universe the SNES-CD and the Dreamcast 2 are still battling it out.

sk8ofmnd461d ago

Sony and nintendo would have had a monopoly on gaming. For selfiah reasons i think id love that but theoretically it could have been bad with 2 conmpanies becoming 1 slaying all competition. As much as i dislike ms they have brought some great things to the medium.

pcz461d ago

crap read.

''Nintendo Tells Square "Never Come Back" After Fallout Over Final Fantasy VII''

using present tense when talking about something that happened 20+ years ago.

TheCommentator460d ago

They also forgot to close it with, "If Sony wasn't so greedy when developing the Play Station with Nintendo that they insisted upon owning all IP published on their CD drive, none of this would have even mattered."

Shinox461d ago

Square Enix is way too dumb to even let them have Cloud Strife for Smash Bros to begin with , how can they be so cocky and ungrateful when they have done the impossible .. i mean Cloud Strife being in SSB for crying out loud , he was supposed to be on All-Stars but he wasn't .. and all that in favor for Nintendo

franwex461d ago

Well he's there, get over it. Smash bros are actually good games. Maybe square doesn't mind having one ir their most recognized characters in an actual good game?

Ravenor461d ago (Edited 461d ago )

SSB>All Stars

EDMIX below knows what's up.

sk8ofmnd461d ago

3Rd partys > all nintendo 1st partys.

Ravenor461d ago

@Sk8ofmnd

How's The Order and LBP3 working out for you?

jaycptza461d ago

sicne we playing this game PC>PS4>XboxOne> Switch

kayoss460d ago

@Ravenor
When did The Order and LBP3 become 3rd parties?

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Featuring_Dante461d ago

nintendo is a sinking ship!
Square realized this 20 years ago!

quent461d ago

Is that why they took money from M$, who's the bigger sinking ship ?

sk8ofmnd461d ago

I would say nintendo. Ms has yet to have a failed console.

Featuring_Dante461d ago

you're comparing apples to oranges!

franwex461d ago

Well as the article pointed it out. Nintendo does what it wants. They wont listen to developers or even fans. They make systems for their own needs. It gets them in trouble at times too.