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SQUARE ENIX - Financial speculation
Serveur: Cerberus
Game: FFXI
Posts: 4,415
By Cerberus.Senkyuutai 2013-06-29 11:13:39
Quetzalcoatl.Gencay said: »I mean come on who doesn’t wanna see Tifa on PS3/4? Her or her funbags?
By Quiznor 2013-06-29 11:17:20
Who owns Legend of Dragoon? If it's SE, then they need to remake it.
Also, Chrono Cross continuation = buy 20 of dem bishes for no reason.
Sony own it,and it was developed by them in house. *** great game though
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Quetzalcoatl.Gencay
Serveur: Quetzalcoatl
Game: FFXI
Posts: 417
By Quetzalcoatl.Gencay 2013-06-29 11:46:12
Cerberus.Senkyuutai said: »Quetzalcoatl.Gencay said: »I mean come on who doesn’t wanna see Tifa on PS3/4? Her or her funbags?
#2 xD
Serveur: Lakshmi
Game: FFXI
Posts: 10,394
By Lakshmi.Sparthosx 2013-06-29 11:49:17
Part of the charm of FFVII was the fact people had cubes for arms, triangles for hair, ninja masks for faces and enemies shaked red as they died.
By Blazed1979 2013-06-29 11:50:30
Step 1. Reign in the budgets. (And maybe some salaries if needed.)
Step 2. Bring your sales expectations down from "Everything will sell CoD-numbers of copies" to something reasonable like say 1.5m.
Step 3. Don't let your dev teams fleece you out of money by releasing half-assed work like 1.0.
Step 4. Stop dumping millions of dollars into pet projects like sequels to games that people thought sucked. (Seriously just abandon XIII already...)
Step 5. Don't develop predatory, PR-nightmare non-game cash-grabs like All The Bravest.
Step 6. Cut down on the number of ongoing projects.
Step 7. Advertise your games online somewhere besides your own damn websites.
Step 8. Do some Market research and for the love of God listen to your fans!
Step 9. Profit.
Added #8
Ragnarok.Alahra
Serveur: Ragnarok
Game: FFXI
Posts: 296
By Ragnarok.Alahra 2013-06-29 11:54:15
Step 4. Stop dumping millions of dollars into pet projects like sequels to games that people thought sucked. (Seriously just abandon XIII already...)
They may not have been well-received but as far as I know both XIII and XIII-2 were profitable for SE.
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Quetzalcoatl.Gencay
Serveur: Quetzalcoatl
Game: FFXI
Posts: 417
By Quetzalcoatl.Gencay 2013-06-29 11:56:20
Lakshmi.Sparthosx said: »Part of the charm of FFVII was the fact people had cubes for arms, triangles for hair, ninja masks for faces and enemies shaked red as they died.
eh it was more the story for me cause I have the game but I have a hard time playing it again cause I loose focus from the low graphics cause they hurt my eyes after a while and i blame it on higher graphics spoiling me >.>;
By Blazed1979 2013-06-29 11:58:21
to the person who raised the question on Tomb Raider costs:
the 300 Mil was total cost to dev/produce/market it.
In that 300 Mil are the TV ads, the media buying, the toys, the actual game, the distribution contracts.
The game development itself would have cost around the 50-100 mil Mark.
Just a side note - SE are also horrible at getting maximum buck for their $ in advertising.
I remember watching a FFXIV TV Ad, with real life people dressed up as races/jobs/classes from the game, 3 years after it was released. And I am an actual player, who has his radar up for FFXIV news and am proactive about finding news/info on it. The fact I saw it 3 years after it was released pretty much means SE marketing = fail!
Quetzalcoatl.Zubis
Serveur: Quetzalcoatl
Game: FFXI
Posts: 235
By Quetzalcoatl.Zubis 2013-06-29 11:59:24
Funny how everyone is saying FF7 remake. Making the game would bankrupt SE based on their costs for other games recently.
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Quetzalcoatl.Gencay
Serveur: Quetzalcoatl
Game: FFXI
Posts: 417
By Quetzalcoatl.Gencay 2013-06-29 12:00:26
to the person who raised the question on Tomb Raider costs:
the 300 Mil was total cost to dev/produce/market it.
In that 300 Mil are the TV ads, the media buying, the toys, the actual game, the distribution contracts.
The game development itself would have cost around the 50-100 mil Mark.
I kinda think the toy idea is stupid. You shouldn't be making toys for it till you know its going to make what you want it to make.
By Blazed1979 2013-06-29 12:08:10
Quetzalcoatl.Gencay said: »to the person who raised the question on Tomb Raider costs:
the 300 Mil was total cost to dev/produce/market it.
In that 300 Mil are the TV ads, the media buying, the toys, the actual game, the distribution contracts.
The game development itself would have cost around the 50-100 mil Mark.
I kinda think the toy idea is stupid. You shouldn't be making toys for it till you know its going to make what you want it to make.
It sometimes increases sales of the main product, in this case the game. Transformers were Hasbro toys long before they were a 80's cartoon series. The cartoon was made to increase the sale of the toys believe it or not haha.
Ragnarok.Alahra
Serveur: Ragnarok
Game: FFXI
Posts: 296
By Ragnarok.Alahra 2013-06-29 12:09:11
to the person who raised the question on Tomb Raider costs:
the 300 Mil was total cost to dev/produce/market it.
In that 300 Mil are the TV ads, the media buying, the toys, the actual game, the distribution contracts.
The game development itself would have cost around the 50-100 mil Mark.
Someone probably saw the Play Arts figures (it's Play Arts, right?) for FF/KH and thought they should do that for every game. That guy has presumably been sacked. Or at least, I hope he has.
By Blazed1979 2013-06-29 12:11:57
to the person who raised the question on Tomb Raider costs:
the 300 Mil was total cost to dev/produce/market it.
In that 300 Mil are the TV ads, the media buying, the toys, the actual game, the distribution contracts.
The game development itself would have cost around the 50-100 mil Mark.
Someone probably saw the Play Arts figures (it's Play Arts, right?) for FF/KH and thought they should do that for every game. That guy has presumably been sacked. Or at least, I hope he has.
not sure. I know Namco Bandai handle all the distribution of SE merchandise like toys and other novelties.
By Quiznor 2013-06-29 12:46:21
Quetzalcoatl.Zubis said: »Funny how everyone is saying FF7 remake. Making the game would bankrupt SE based on their costs for other games recently.
Im only going by nomura's own words. In which he said the only way they'd do that was if SE was officially going down the drain and this was their ace in the hole to try pull themselves back out :p
But yeah with costs (13 series,both 14s and 15 spring to mind) the cost is astronomical
By Heimdel 2013-06-29 13:09:37
I remember when the whole fiasco of 14 happen they took such a big hit it sent them from the kind of numbers a major game developer expects to what a start up would be doing if that. They really have never recovered from the damage 14 did since they made such a huge bet on it being a success.
One the problems the company has had is that when Square and Enix merged the way the deal was set up Square gave up almost all say in the company itself. They lost most say in how the company was ran and what the focus was. This resulted in moving away from focusing on the quality of the games to focusing on profits. The shift actually started to happen before the merger then went into full swing once it merged. This resulted in slapping big name franchise titles on any piece of crap they pumped out(Dragon Quest for the Wii) and pumping out those games as fast as possible. This both diminished the reputation of the franchise/brand and of the company itself.
I remember when a new final fantasy game coming out was a major gaming event. When ff7 was coming out people were buying out another game(Tobal not a bad game in itself) just to get at the short ff7 demo disk inside. People literally were spending the 40-60 dollars for the game just to play the demo and never even tried the actual game. Then after that they started putting out new games faster and faster and it became oh another final fantasy game again instead the wow this is great a new final fantasy game.
Last I read there was something about them wanting to move away from the big games and more to doing mobile app games at least in part. A big change for a company once know for makes the highest quality of games that was used as the standard other games were compared to.
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By Heimdel 2013-06-29 13:12:50
Quetzalcoatl.Zubis said: »Funny how everyone is saying FF7 remake. Making the game would bankrupt SE based on their costs for other games recently.
Im only going by nomura's own words. In which he said the only way they'd do that was if SE was officially going down the drain and this was their ace in the hole to try pull themselves back out :p
But yeah with costs (13 series,both 14s and 15 spring to mind) the cost is astronomical
Simply put they are spending so much money on trying to pump out games as fast as they can they have giving up on the time needed to focus on making a top quality game that would bring in the big profits they need and want. As the saying goes more is not always better.
Serveur: Shiva
Game: FFXI
Posts: 8,022
By Shiva.Viciousss 2013-06-29 13:15:39
Quote: 2013 Sales Targets = 75,000,000 sales total!!!!
What the hell are they releasing that is expected to garner that many sales? FF14, FFX remake (maybe), 13-3? Yeah, they will be lucky to see 10 million sales from the 3 of those combined. Ok actually, thats not gonna happen. More like 5 million. I would give them no chance of hitting 20m for the year, unless there is a huge game I am overlooking. With stupidity like that running the office, just go out of business.
By Heimdel 2013-06-29 13:18:55
Quote: 2013 Sales Targets = 75,000,000 sales total!!!!
What the hell are they releasing that is expected to garner that many sales? FF14, FFX remake (maybe), 13-3? Yeah, they will be lucky to see 10 million sales from the 3 of those combined. Ok actually, thats not gonna happen. More like 5 million. I would give them no chance of hitting 20m for the year, unless there is a huge game I am overlooking. With stupidity like that running the office, just go out of business.
Edit: Sell 11 to a good company THEN go out of business... Hmmm Final Fantasy 11 brought to you by Valve?
By Quiznor 2013-06-29 13:20:43
Quote: 2013 Sales Targets = 75,000,000 sales total!!!!
What the hell are they releasing that is expected to garner that many sales? FF14, FFX remake (maybe), 13-3? Yeah, they will be lucky to see 10 million sales from the 3 of those combined. Ok actually, thats not gonna happen. More like 5 million. I would give them no chance of hitting 20m for the year, unless there is a huge game I am overlooking. With stupidity like that running the office, just go out of business.
Edit: Sell 11 to a good company THEN go out of business... Hmmm Final Fantasy 11 brought to you by Valve?
Valve cant count above the letter 2,so it wont work.
Atlus are going out of business possibly,so who knows,SE could magically pull money from nowhere and buy them. @_@
By Heimdel 2013-06-29 13:50:18
Quote: 2013 Sales Targets = 75,000,000 sales total!!!!
What the hell are they releasing that is expected to garner that many sales? FF14, FFX remake (maybe), 13-3? Yeah, they will be lucky to see 10 million sales from the 3 of those combined. Ok actually, thats not gonna happen. More like 5 million. I would give them no chance of hitting 20m for the year, unless there is a huge game I am overlooking. With stupidity like that running the office, just go out of business.
Edit: Sell 11 to a good company THEN go out of business... Hmmm Final Fantasy 11 brought to you by Valve?
Valve cant count above the letter 2,so it wont work.
Atlus are going out of business possibly,so who knows,SE could magically pull money from nowhere and buy them. @_@
Hey 1+1= 2 so you're still good.
By Quiznor 2013-06-29 13:52:08
For now!
/panic
Ragnarok.Kongming
Serveur: Ragnarok
Game: FFXI
Posts: 1,052
By Ragnarok.Kongming 2013-06-29 13:58:26
I really want them to go under. I think once their IPs are sold off to a company (or companies) that actually know the games and the fanbases enough to actually respect them, we can see the types of games we deserve to see again. Companies like Level 5, Matrix Software, and Silicon Studios are all far more capable of carrying on the FF/DQ product lines than SE themselves.
SE has become essentially the EA of Japan, a publishing house too big for its own good, and far too removed from the end product to care about anything more than the bottom line.
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By Heimdel 2013-06-29 14:07:42
By fonewear 2013-06-29 14:07:48
Ragnarok.Kongming said: »I really want them to go under. I think once their IPs are sold off to a company (or companies) that actually know the games and the fanbases enough to actually respect them, we can see the types of games we deserve to see again. Companies like Level 5, Matrix Software, and Silicon Studios are all far more capable of carrying on the FF/DQ product lines than SE themselves.
SE has become essentially the EA of Japan, a publishing house too big for its own good, and far too removed from the end product to care about anything more than the bottom line.
I'll take Level 5 over SE any day of the week.
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Bismarck.Patrik
Serveur: Bismarck
Game: FFXI
Posts: 1,325
By Bismarck.Patrik 2013-06-29 14:24:25
If FF got bought out by Mistwalker I'd be thrilled >.>
Though sadly I don't think Mistwalker has all that much money.
(Mistwalker's president is the original creator of FF series)
Cerberus.Cahlum
Serveur: Cerberus
Game: FFXI
Posts: 268
By Cerberus.Cahlum 2013-06-29 14:27:25
Sadly the people who would buy FF would be EA.
Serveur: Cerberus
Game: FFXI
Posts: 4,415
By Cerberus.Senkyuutai 2013-06-29 14:44:41
Quote: 2013 Sales Targets = 75,000,000 sales total!!!!
What the hell are they releasing that is expected to garner that many sales? FF14, FFX remake (maybe), 13-3? Yeah, they will be lucky to see 10 million sales from the 3 of those combined. Ok actually, thats not gonna happen. More like 5 million. I would give them no chance of hitting 20m for the year, unless there is a huge game I am overlooking. With stupidity like that running the office, just go out of business.
Edit: Sell 11 to a good company THEN go out of business... Hmmm Final Fantasy 11 brought to you by Valve?
Valve cant count above the letter 2,so it wont work.
Atlus are going out of business possibly,so who knows,SE could magically pull money from nowhere and buy them. @_@ Valve at least would push the F2P on it and would solve the money issues.
I just don't understand why Yoshida is being such an idiot. The guy just doesn't understand that if they turned A Realm Stillborn F2P, they would literally print money Nintendo style and they would escape their shithole.
Seriously now, make classic FF skins, pets, whatever for 5$ each and people will buy so many of them that they'll never have to bend over again in order to keep the company alive.
If anyone has read the latest Yoshida post on the forums regarding why he wants to keep a subscription based system, there are 2 things to understand from it:
1) Half of the content of the post are lies (bla bla we never used anyone's help to stay alive bla bla)
2) They won't make money with FFXIV until it is 2014, at least, assuming they wake up and switch to F2P. Many testers, a huge part of them can't even pay for the game/subscription, but they could pay 5$ per month for a skin.
PSO2 is working better than FFXIV ever has and most likely ever will, why?
Because it's a F2P that sells a shitload of skin stuff. It's time to drain people's money by being smart, not by releasing something that is older than the people they target when they make a game.
Regarding the franchise being bought, well, it's even easier than throwing names: nobody wants to buy this.
Why would they? Mistwalker etc are ex Square guys, why would they buy the thing they left in order to make better stuff of the same kind? Same goes for any Japanese company, they have their own franchises that are buried.
There will be a day when we have to turn the page, either on FF, or on Square. They can't adapt, even their Eidos games can't follow the market. They need a really, really strong wake up.
Serveur: Shiva
Game: FFXI
Posts: 8,022
By Shiva.Viciousss 2013-06-29 14:50:32
Cash Shop is definitely the way to go, games like Guild Wars 2, Phantasy Star, hell even Aion has revived itself and is doing well again as a F2P with a solid cash shop. Its probably too late for FFXI to make the switch, but FF14 can certainly do it. The "you get what you pay for" argument is old, stale, and obsolete. The MMO market has changed, sub fees are dead.
SE Q1 2013 Report - source
2013 - Market Q1 Performance
Their financial report for Q1 2013 is all doom and gloom, but the sales targets are even more interesting since we know they are already in the state of projected losses, and unlike the Financial report, demonstrates how close they are to panic. (Also Namco is taking SE to court for backing out of contractual obligations and commitments with Bandai)
2013 Sales Targets = 75,000,000 sales total!!!!
That is across all 2013 releases of course. But still, to have those kind of sale targets and still be projecting losses for the fiscal year...what does break even look like? 100,000,000 sales?!
Back to their financial report, they expected to make a huge amount of money off of tomb raider, sleeping dogs, and hitman absolution. They expected Tomb Raider alone to make USD $ 300,000,000 in sales to BREAK EVEN!
1. Q1 Projected Losses - 3.5 Billion Yen
- Actual Losses - 13.5 Billion Yen (USD $13,107,5100)
2. Q2 Projected Losses - 7 Billion Yen.
- Actual Losses - due July 9th 2013
3. Tomb Raider Reboot
- Game development + Marketing Costs: $USD 300,000,000
- Expected sales: 6-7 Million within first Month
- Expected Annual sales (2013): 11 Million
- Actual Sales as of June 13th: 4.1 Million
Sales value in $:360,000,000
Net: 120,000,000 (only a third of the sales is SE's revenue)
Loss: 180,000,000 as of June 2013!
(to put the above in contrast, compare to major recent upsets in company executive leadership due to below)
4. Sleeping Dogs & Hitman Absolution reason for EX-CEO's resignation/termination
- Sleeping dogs expected sales: 3.5 Million (minimum)
- Sleeping dogs actual sales: 1.7 Million
5. FFXIV & FFXV
Square ENIX has spent more than 600,000,000 on developing FFXIII or now known as FFXV.
FFXIV 1.0 cost the company a whopping 400,000,000 USD in development and marketing costs. It is said they went over budget in 2011 to increase marketing costs due to dismal subscription and sales rates. So that 400,000,000 USD isn't the real number. Probably more like 450,000,000 USD.
I don't have any info on how much they've pumped into FFXIV 2.0 but we know its hidden somewhere in their financial reports game development section.
FFXI
As of end of Q1 2013, FFXI revenue had decreased 9%.
In short:
If FFXIV succeeds but FFXV sucks, they're doomed.
If FFXV succeeds but FFXIV sucks, they're doomed.
Unless both titles perform as well as SE projects, they're doomed.
They actually mention this in their report:
"I believe that this situation is not a one‐time event for the
fiscal year ended March 2013, but is a structural issue within
the packaged product sales model. As a result, I believe itis
difficult to guarantee an appropriate return on our
investments within the revenue model of purely packaged
software.
It is important to consider how to change business models in
light of rigidity from the perspective of pricing, and I believe
that the transformation to online titles and the diversification
of profit opportunities is the key"
I guess that is a nice thing to read for FFXI players, only a few years too late. If SE had realized this earlier and pumped more development into its flagship online title... who knows where they would be now..
Instead they milked the hell out of FFVII with spin offs and spin offs of spin offs and are now repeating the same mistake with a much less valued franchise - FFXIII- lightning.
Given SE's track record of not being able to predict f_ck all, all bets are on SE not surviving 2013.
That might actually be good news for FF fans. There are a few companies out there with large enough funds to buy Square Soft.
My prediction:
In 2014 SE will sell off its Square Soft assets and divisions to consolidate its liabilities. FF franchise is too big to loose, SE isn't.
EDIT: Have to get it in here - FFXIII-VERSUS
This is the first game in history to be announced as flagship title for a new generation console (PS3) and take so long to develop that it is now a flagship title for the next gen console, PS4. just ridiculous.
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