Squeenix sees ''major changes'' coming, will it jump ship like Konami?

[stroopwafel]

So from the six months ending in september the company had a net income increase of 1,6 billion yen compared to the same period last year thanks to mobile and browser games. I don't think Squeenix will be as entirely stupid as Konami and burn their bridges, but still this continues to be a worrying trend.

Top performing titles during the quarter included PC browser game Sengoku Ixa, as well as smartphone titles such as Dragon Quest Monsters Super Light, Schoolgirl Strikers, Final Fantasy Record Keeper, and Kai-ri-Sei Million Arthur. Square Enix said Mobius Final Fantasy also made an "encouraging start."

In addition, MMOs Final Fantasy XIV and Dragon Quest X have been "making favorable performances." It wasn't all good news for Square Enix, however, as catalog sales (re-sales of previously released games) declined.

Looking ahead, Square Enix said the environment surrounding its various business units (Square Enix also has Amusement, Publication, and Merchandising units) is undergoing "major changes."

"Smartphones and tablet PCs are spreading rapidly, while the console game markets in North America and Europe are increasingly getting competitive and oligopolistic," it said. "In light of such environmental changes, the Group is focusing all efforts on establishment of a solid revenue foundation through introduction of flexible content development conforming to the ever-changing environment as well as diversification of profit opportunities."

http://www.gamespot.com/articles/square-enix-revenue-and-profit-rise-as-publisher-s/1100-6432043/

 

[Xeorm]

It's possible, but I doubt it. Given all their mobile titles are effectively milking their established franchises, it'd be silly to stop them.

But who knows. Suits have always surprised me in making stupid decisions.

 

[dyre]

That's just generic corporate-speak. Investors want to hear that publishers have a diverse set of products, that's all. Square Enix is a behemoth that expands in all directions, and it'd be stupid not to include more casual games (which afaik have minuscule development costs and bring in great cash flow à la microtransactions) in its portfolio.

 

[Fox12]

We've been seeing huge changes ever since the old CEO was shamed out of the company, and they've been entirely for the better.

1) FF 14 gets a massive overhaul
2) FF Versus is renamed FF15
3) Nomura is pulled off of FF15, and the game enters final development after years of developmental hell
4) Nomura is put in charge of the fan demanded KH 3 after years of inactivity
5) Nomura will be put in charge of the fan demanded FF7 after years of inactivity, and after the companies refusal to remake the most demanded game in the history of the company

What we're seeing is a dramatic overhaul as the new CEO tries to set things right, and fix the mess the old CEO created. He seems to be doing this by actually listening to his customers. It will take years to see the impact of this, but he's set the wheels in motion after his predecessor nearly ruined the company with his incompetence.

 

[stroopwafel]

It will take years to see the impact of this, but he's set the wheels in motion after his predecessor nearly ruined the company with his incompetence.

Last president of Squeenix was that still Yoichi ''imperial hotness'' Wada? I can't really remember. I don't think the points you mention can really be attributed to the ceo's incompetence but rather just game concepts not working out. Infact you can argue he gave the developers a lot of freedom and use of resources by not pulling the plug earlier. Wada espescially seemed to have the company's best interest at heart.

No, I think the dumbest thing that company(Squaresoft) ever did was merge with Enix. It really stifled a lot of their innovation and seemed to have reduced their portfolio to sole regurgitations of Final Fantasy(compared to '90's Squaresoft). Well that and give Sakaguchi permission to make that disastrous movie Final Fantasy Spirits Within that pushed the company to the merger with Enix.

 

[blank0000]

I think we need to realize that moving out of console development isn't a stupid business decision, despite how we wish it was. I imagine new blood coming in, seeing the cost in time , R and D , advertising , and PR balancing vs the mobile market and making a strong argument to change company direction. In some cases, large, ancient organizations are less equipped to make expensive creatively taxing projects.

 

[Hairless Mammoth]

Lot's of Japanese publishers are jumping on the mobile bandwagon. It's just where the game market in Japan (and much of the world market) is growing. Many people in Japan want something quick to pick up and put down during their daily commutes. That's why the Nintendo's handhelds sold so well their home country for decades and have a variety of games.

I don't think Square is going to be stupid and abandon console/PC games, either. Even if FF14 didn't make a comeback, Square Enix is still doing better in the PC/console market than Konami was before being openly antagonistic and jumping ship. Squeenix is also a game company first. Konami is in a few other industries, with lower risks, and the leadership doesn't want to risk money on something as volatile as AAA games, even if they have the money to weather a few games doing poorly.

We probably won't see many publishers pull a Konami any time soon. The mobile market still has a chance to hit a ceiling or pop, and has proven hard to break into for some companies (Capcom). Konami just has plenty of other revenue sources to fall back on if their mobile division fails.

 

[gyrobot_v1legacy]

Lot's of Japanese publishers are jumping on the mobile bandwagon. It's just where the game market in Japan (and much of the world market) is growing. Many people in Japan want something quick to pick up and put down during their daily commutes. That's why the Nintendo's handhelds sold so well their home country for decades and have a variety of games.

I don't think Square is going to be stupid and abandon console/PC games, either. Even if FF14 didn't make a comeback, Square Enix is still doing better in the PC/console market than Konami was before being openly antagonistic and jumping ship. Squeenix is also a game company first. Konami is in a few other industries, with lower risks, and the leadership doesn't want to risk money on something as volatile as AAA games, even if they have the money to weather a few games doing poorly.

We probably won't see many publishers pull a Konami any time soon. The mobile market still has a chance to hit a ceiling or pop, and has proven hard to break into for some companies (Capcom). Konami just has plenty of other revenue sources to fall back on if their mobile division fails.

Its not just that, the console and handheld development groups are tight small development groups that takes years to make a single game and rarely hire new blood. Mobile Gaming lets newer programmers and potential devs get a chance to try making and maintaining a game and see if the devs want them in or not and develop a diverse skillbase. You think a company will hire you just because you can make good music or a story? They will also make you pull your weight as a code monkey.

 

[BloatedGuppy]

Wouldn't surprise me. You're going to see more and more of this. Mobile gaming is expanding at an astronomical rate and is absurdly profitable. Oddly, companies like profits.

I don't think you'll see "traditional" gaming go away entirely, but you're definitely going to see some changes.

 

[BloatedGuppy]

Everyone thinks mobile is absurdly profitable. It is, for maybe 1% of the games on there like Clash of Clans, Game of War and Candy Crush. What people don't see is the 89 or so % of games being crushed and killed there and maybe the 10% actually managing enough money to be sustainable.

No, I'm aware. The thing to be considered is the overhead and development resources that goes into a mobile failure vs a AAA traditional failure. They're not spending 200m developing the next Candy Crush. The risk is low and the ROI is potentially spectacularly high.

Time will tell if the market gets over-saturated and it's too many people squabbling over the same pie (a very likely scenario), but right now I can guarantee you companies are staring at shit like Candy Crush's quarterly numbers and their mouths are making cash register sounds. There will be upheaval.

 

[BloatedGuppy]

If EA isn't making it work and being able to make a huge shift to it then at best we'll see Mobile as a part of businesses. Or AAA developers buying out Mobile developers or working with them.

Exactly this. Some will try dipping their toes in, those with larger wallets will pull an Activision and just buy the heaviest hitters out there.

Something to keep in mind is the SIZE of the market they're trying to infiltrate. Candy Crush had an estimated 93 million people playing it every day. Now, clearly they're not all going to be Candy Crushes, and the more different companies push into the market the less likely you are to have another Candy Crush or Angry Birds due to saturation, but you know that the bean counters at the head offices are looking at those numbers and saying "We should be doing this too".

 

[AzrealMaximillion]

I doubt Sqeenix will pull a Sega/Konami. They make too much money off of gaming and fan merch based off of their games. Plus they own Eidos which is doing well.

Konami just destroyed most of their franchises with years of mediocre entries into said classic franchises. Sega could still be good in the gaming world if they fucked off with the Nintedo style lack of localization.