CEO: Square Enix Has Become "Weaker Than Expected"

[Tom Goldman]

CEO: Square Enix Has Become "Weaker Than Expected"

Square Enix CEO Yoichi Wada explains why the company lost so much money last year and how it hopes to recover in the future.

Square Enix recently published a revised financial forecast [http://www.escapistmagazine.com/news/view/109989-Square-Enix-Financials-Fall-Through-the-Floor] where the company projected a loss of around ¥12 billion ($148 million) for the financial year ending on March 31, 2011. Not good. CEO Yoichi Wada explains that the company's methods had unexpectedly become weak, and may take a year or two to bring back up to speed.

Speaking at an investor's briefing (via Andriasang), Wada admitted: "Our game development has become weaker than expected. Revamping it will take one or two years."

¥4.5 billion of the losses were partially related to the development of charging a monthly fee [http://www.amazon.com/Final-Fantasy-XIV-Pc/dp/B002I0JJ2U/ref=sr_1_1?ie=UTF8&qid=1305477308&sr=8-1] for it more than 6 months after release, and the cancellation of multiple titles. Wada revealed that Square Enix suffered from poor internal communication between project leads and subordinates, in addition to a work environment where employees weren't able to properly divide tasks amongst each other.

To bring the company back into profitability, Wada laid out a plan that includes the development of 5 brand new IPs. These IPs would join established franchises such as Kingdom Hearts [http://www.amazon.com/Final-Fantasy-XIII-Playstation-3/dp/B000FQ2DTA/ref=sr_1_1?s=videogames&ie=UTF8&qid=1305477948&sr=1-1], Deus Ex, Tomb Raider, and Hitman. Two would come from Square Enix's Tokyo branch, one from Eidos Montreal, one from IO Interactive, and one from Square Enix's Wimbledon studio. Wada also hopes to expand Square Enix's presence in social networking and mobile markets, taking advantage of external developers with more experience in those realms, as opposed to current staff that's used to working on packaged products.

Development on the new brands could take 3 to 5 years, Wada predicts. Square Enix does have a strong lineup of titles announced for the near future, which include Final Fantasy XIII-2 [http://www.amazon.com/Deus-Ex-Human-Revolution-Pc/dp/B002I0HKRQ/ref=sr_1_7?s=videogames&ie=UTF8&qid=1305477954&sr=1-7], and more. Perhaps these titles, combined with its brand new IPs, can help Square Enix make a recovery in the future.

Source: Andriasang [http://www.andriasang.com/e/blog/2011/05/14/wada_on_losses/]

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[Liudeius]

Square Enix needs to actually focus on making quality rather than quantity. These days if I see a Square Enix game that isn't Final Fantasy I avoid it because so many of their games are low quality.

 

[blue heartless]

Here's what you do. Put a Kingdom Hearts 3 secret movie at the end of every game you put out. Your games are sold. This is a fact.

 

[Genixma]

I can tell you right now. Final Fantasy XIII-2. Cancel that.

 

[Meggiepants]

You know, I realize the portable gaming systems are likely profitable, but if they later released these titles for download on PSN and XBL, I would think they'd do well with that. I don't have a DS, but I might play a Dragon Quest game.

Also, Kingdom Hearts died as a franchise for me when it took a purchase of three different systems to follow that convoluted ass story.

I think Square could use an infusion of new ideas, so the new IPs sound promising.

 

[the_pleasure_is_mine]

Square does really need a revamp...

Except for Deus Ex, that's looking really good and I hope this in no way negatively affects that game.

I'd like to see them get better, but only under the ideal that they improve their games, FF13 was fun but a massive letdown, I'd rather go dig out my PS1 and replay FF7 again and again and again...

Extra: I get that they might never remake FF7... but at the very least release it on XBLA, that is a ton of cash right there at minimal effort.

 

[mjc0961]

Here's what you do. Put a Kingdom Hearts 3 secret movie at the end of every game you put out. Your games are sold. This is a fact.

To maybe a few extra people, but then the video gets on YouTube and people who only care about KH3 and not the other game just watch it for free.

If they really want money, they should just, you know, cut the bullshit and give people KH3.

 

[The SettingSun]

Kingdom Hearts 3 would bring a lot more cash than bringing out endless side-games which are slowly killing off the fanbase.
Don't make new IPs, make Kingdom Hearts 3 and make it good.

 

[googleback]

the last game that interested me from their japanese end was Nier. I'm a big fan of the hitman and Deus Ex franchises but they were all before the merger so we'll see what they do with them now...

I have a sneaking suspicion that Square screaming for a shooter is what made Kane and Lynch 2 such a poor game...

 

[King_Serpent]

Sounds a bit like the Capcom 5 plan. Well, except for Killer 7 I don't know much about the other games that came from that plan. Maybe only saying this because there are five brand new IPs in both plans. I don't know if thats enough to make a comparison. Well, I hope they are good games in any case.

 

[Bonemonster]

No Chrono? Still? I am disappoint.

Want to make millions of dollars Square?

Protip: Final Fantasy 6, 7 and a new Chrono.

That is all.

 

[Death-of-Penguins]

I really have lost interest, and that's coming from someone who enjoys the Final Fantasy series. I forgave FFXIII for its little problems, and quirks like you forgive a child that's trying it's best but has smeared paint up the walls while drawing you a picture.

To be honest, the only game I really want them to make is a sequel to The World Ends With You. If I saw that I'd be excited, but otherwise...

 

[FinalDream]

Step One: No. More. Final Fantasy MMO's. A ton of cash (and disappointment) saved right there.
Step Two: Listen to your fans on Final Fantasy games, don't just make changes in one go (ala FF13) gradually phase them in slowly.
Step Three: For me, base Hitman on the previous games, not the terrible movie
Step Four: Release Final Fantasy Versus 13!
Step Five: Kingdom Hearts 3
Step Six: Don't mess up Tomb Raider
Step Seven: Profit?

 

[King_Serpent]

I really don't think that re-releasing old titles is a good plan like everyone is saying release some new IPs like their doing then new famous franchises will spring up hopefully which random people will want remade.

EDIT: By the way so no one mistakes what I am saying they can re-release old games just remaking them seems pointless

 

[Hikaru CF]

Perhaps they'll get round to a FF7 remake? Surely that would make a nice amount of money from longtime fans and people who have never played the fabled 'best' FF game (like me).

 

[Bonemonster]

I really don't think that re-releasing old titles is a good plan like everyone is saying release some new IPs like their doing then new famous franchises will spring up hopefully which random people will want remade.

EDIT: By the way so no one mistakes what I am saying they can re-release old games just remaking them seems pointless

I can understand your position but I wasn't speaking of some simple re-release. A complete redo of FF7 that was like that teaser trailer a few years ago would rake in some serious dough. The same could be said of a modern FF6.

As for Chrono, a new one, please.

 

[Delusibeta]

Sounds a bit like the Capcom 5 plan. Well, except for Killer 7 I don't know much about the other games that came from that plan. Maybe only saying this because there are five brand new IPs in both plans. I don't know if thats enough to make a comparison. Well, I hope they are good games in any case.

Killer7 came out, PN-03 came out (and was quickly forgotten), Viewtiful Joe came out, one from the five was cancelled and I think the fifth game was Resi Evil 0, which also came out.

 

[Frostbyte666]

Hell remaking FF7 would probably bring in a lot of dosh (also please don't start ranting about other FF's to be remade). I'm hoping Dungeon Siege and Deus Ex will be good. But having some new IP's would definitely help. Also, yeah don't bother with 13-2, hell I stopped playing FF series after 9, though I did try out 10 and have a fervent wish for dissidia on ps3 so I can brutally slaughter Tidus.