As a developer they have completely lost their focus. It is mind boggling how they have utterly destroyed two of the best brands in the RPG genre, Final Fantasy and Seiken Densetsu/Secret of Mana. Basically with their massive succes of the FF's on the PSX, Square just got greedy. They somehow thought it was a great idea to create as many spin offs as possible, no matter which genre, and that the public would all love them. And along the way they completely forgot what made people really care about their main franchises to begin with. Alas, their process of westernizing their games began, and their downfall was complete. The fact that it took an immense shitstorm from the fans after FFXIII to make Square realise they messed up just shows you how disconnected they were from their fans.
Sadly, even with that backclash, they still don't get it, as evident by their recent comments about wanting the FF series to produce new titles in the same way as the Call of Duty series. In other words, yearly releases and innovation in the back seat.
I still don't understand how they could make such an utter mess of the Seiken Densetsu series. After finally publishing part two in US/Europe under the name Secret of Mana, they never even bothered to release the next one outside of Japan. Mind boggling, as sales numbers and reviews from the Western world more than justified a release over here as well. As it is, Seiken Densetsu 3 stands as one of the greatest JRPG's never released outside Japan. In 2000 Square, finally announced a sequel to the Mana series, this time on Playstation, but it contained nothing of the parts that made us love the series to begin with. Gone were the strong and cohesive story, the lovable characters and multiplayer option. What was left was beatiful graphics and a strong soundtrack, a collection of miniquests instead of the focused Action-RPG classic that is was supposed to be.
You wouldn't think it at the time, but this game represented the first worrying sign of Square really dropping the ball, and now we can see they have done the same to Final Fantasy.