Baresark said:
I can't help but feel that it's a mistake not licensing this engine. Epic makes stupid amounts of money from licensing Unreal. It could be something that would produce steady income for the company, which from what I understand, they could use. By not licensing the engine they are spending lots of money to make a games with it and hoping they sell well. You need to cover the cost of making the game and the cost of making the engine. And with Squarenix's development times they run the risk of only using it for a few games before it's obsolete. But, meh. It's there money to waste doing it.
I agree that it might be a mistake for them not to license the engine, but something else to keep in mind is that licensing an engine isn't as simple as making it then having people pay to use it. You have to support the engine as well which means constant work updating it, optimizing it, streamlining work flow, and supporting your customers who are licensing it when they have technical problems. And obviously those technical problems may get a little more involved than the sort your average PC owner encounters with the software they use.
It's no small undertaking to try and make a go at licensing your engine. They'd probably have to employ and train an entire new division to do it, and that's kind of risky, especially when Epic has such a lock on the engine market right now, and while this engine is looking good, it doesn't look to be doing anything totally ground breaking on either the consumer end for the final game, or on the developers end with the development pipeline. I was just as, if not more impressed by the demos I saw of UE4 as with the luminous Engine stuff in that regard. It's just not the sort of thing that looks like it has a niche it can fill, and competing in the ever shrinking AAA market is only going to get more difficult instead of less if the next consoles go for raw power at all costs again. Maybe they could try and find that niche in the Japanese market, but they're backing away from AAA development even more so than the West it seems.
It also needs to be remembered that while Square has certainly been struggling, games are still their primary business. If they decided to try and license this, they'd be competing with Epic which not only has much of the market already, but which is basically a company that licenses it's tech first and makes games second. Engines are their business, and it would be a big uphill climb. I'm not sure Square could afford to chance it right now even if they wanted to.