As you might be aware, Square-Enix president Yoichi Wada, who was appointed head of the company after the merger between Squaresoft and Enix in 2003, has resigned from the company, with Yosuke Matsuda set to take over in June. This follows poor commercial reception of some of its heavy hitting published titles, such as the recent Tomb Raider reboot, that only sold 3 and a half million units. Wait, what?
Yes, according to Square-Enix, many of its most recently released titles have failed to live up to retail expectations.
That includes Tomb Raider at 3.4 Million units shifted (in just over a month!), Hitman Absolution with 3.6 million, and Sleeper hit sleeping dogs only managing 1.75 million. Together, that equals 8.75 million sales worldwide – short of the company’s expected sales tally of 14.9 million retail units. That, mind you, doesn’t include any digital sales of those games whatsoever – so it’s likely that the numbers are significantly higher. But still, it’s apparently just not good enough.
You have to wonder just what in the hell is wrong with current, accountant-run game development when 3 and a half million units sold isn’t considered a success.
At the beginning of this gen, 1 million in sales was generally considered to be the point at which games broke even; have development costs surged so high in the past few years that it takes 4 million in sales just to recoup costs? What does that say of the next gen?
Or is it, perhaps, that publishers are expecting too much; hoping that every single game sells in the same ludicrous numbers as each annual Call of Duty? It’s incredibly unrealistic, driven, I suspect, by corporate accountants in suits with their impossible to reach, unrealistic sales projections.
If 3.4 million sales in a month doesn’t satisfy expectation, then I’m afraid you’re going to have to lower them.
Last Updated: March 27, 2013
Jean Nightingale
March 27, 2013 at 13:07
I would personally like to know if these games actually made a loss or if it was just an expectation because no one seems to be clarifying that point. because if at 3.6 million copies sold your making a loss we can expect very high game pricing for next gen.
Jim Lenoir (Banana Jim)
March 27, 2013 at 13:18
Exactly! I’m very sceptical when it comes to the game’s industry, especially because they’re the least transparent about actual costs. It wouldn’t surprise me if this is all a ruse just to push up pricing next gen. The more times you repeat a lie, the quicker you can sell it as “truth”.
OVG
March 27, 2013 at 13:42
$69 cause they can 🙂
Jim Lenoir (Banana Jim)
March 27, 2013 at 13:46
That’s why I’m getting Saints Row 4 in November. GTA V will have to wait till the price drops. As much as I like Rockstar, their pricing is at DefCon Cockbite Level.
OVG
March 27, 2013 at 13:49
I see MAX PAYNE 3 is now R299. Thats more like it. I just saved R400 because I waited an extra 4 months 🙂
Jim Lenoir (Banana Jim)
March 27, 2013 at 13:55
It’s sad, but here’s the thing, how many copies more would Max Payne 3 not have sold had the price been more … manageable… If it launched at R300, I would have bought two copies (one PS3 and one Xbox 360), and my friend would have done the same. Why? Because we’re financial numbnuts, Rockstar fanbois and idiot savants (also because we have friends on both sides of the console divide and would have loved to MP with them).
Instead, I ended up not buying it at all :/ I only played it because I had to review it, and while I enjoyed it, the high price point meant that I couldn’t buy a copy for my collection.
I might actually get a copy now… come to think of it…
Eric Viljoen
March 27, 2013 at 14:25
And waiting that time has other benefits over buying when it comes out.
1) DLC
2) You aren’t a beta tester(most bugs are fixed/patched)
Jim Lenoir (Banana Jim)
March 27, 2013 at 14:27
lol exactly!
Uberutang
March 27, 2013 at 14:19
I paid R60 for Max Payne 3 on steam…
Johan Fourie
March 28, 2013 at 11:28
Steam sales, baby! Bought that biatch for $29 in the Winter Sale.
Sir Captain Rincethis
March 27, 2013 at 13:43
Well GTAV is already 70$ isn’t it?
Sir Rants-a-Lot Llew
March 27, 2013 at 13:09
Urm ok….
Jim Lenoir (Banana Jim)
March 27, 2013 at 13:29
HA! Llew-san, Game sells under 12 million copies, developing team must commit seppuku to regain corporate and family honour.
Meanwhile, CEO and board members swim in money lake.
Sir Rants-a-Lot Llew
March 27, 2013 at 13:30
Hahahaha! Spot on Jimmy Banana!
JHN
March 27, 2013 at 13:09
I would personally like to know if these games actually made a loss or if it was just an expectation because no one seems to be clarifying that point. because if at 3.6 million copies sold your making a loss we can expect very high game pricing for next gen.
Jim Lenoir (Banana Jim)
March 27, 2013 at 13:23
Exactly! That’s the other side of the coin. You have these ridiculous sales expectations, which they then feed to investors and shareholders, but then when the game comes in short (even though it’s still profitable), you get grumbling about how a game is a commercial failure.
But as I said, since publishers are notoriously obtuse when it comes to actual numbers, we’ll never really get a truthful idea – unless like THQ they fall and fail spectacularly…
Jim Lenoir (Banana Jim)
March 27, 2013 at 13:12
It’s truly a sad state of affairs when a great game that sells over a million can be considered a commercial failure…
I really think publishers need a healthy dose of reality: (a) Stop thinking like MBA douchebags, (b) Remember that the global recession is still in effect, and (c) for the love of all that’s Gaming…. stop inflating your marketing budget to such a degree that it negates your sales. Go crazy in development, but keep the PR guys on a short leash.
The Banana Consultant has spoken! Free consultations with every Banana meal!
Sir Rants-a-Lot Llew
March 27, 2013 at 13:14
If only they would listen
Jim Lenoir (Banana Jim)
March 27, 2013 at 13:15
In their minds, I’m just a dick with a banana on its head. (wow the imagery)
Sir Rants-a-Lot Llew
March 27, 2013 at 13:29
Just… wow
Jim Lenoir (Banana Jim)
March 27, 2013 at 13:30
Sometimes I shock even myself…
Gustav Willem Diedericks
March 27, 2013 at 13:21
Sad fact: they won’t listen. Greed is deaf and dumb.
umar bastra
March 27, 2013 at 13:38
What I don’t get about marketing they spend millions on the marketing but, seriously guys, we all gamers right? we just need a few gameplay clips, a trailer or two and bam , there you go we have hype …. THATS IT! we don’t need freaking live action movie trailers, We don’t need to see Harrison Ford playing the game, we don’t need any of that BS
Jim Lenoir (Banana Jim)
March 27, 2013 at 13:43
Exactly, and that’s really all that matters. As a typical gamer, all I want to see is actual gameplay, maybe some hook (like a kickass song) and a connected peer group that riles us up in a frenzy. Just look at the Battlefield 4 trailer. They don’t need to go out and rent billboards. That 17 minute trailer has inched me closer to buying the game then any tv commercial, billboard, banner etc. ever would. The product practically sells itself once you have something that gamers want to buy.
umar bastra
March 27, 2013 at 13:47
which makes you think…what demographic are they aiming at?….sigh…it’s like games aren’t geared towards gamers anymore
Jim Lenoir (Banana Jim)
March 27, 2013 at 14:13
I think they’re still in the Wii-era mindset, and banking on the idea that the casual majority actually matters. The post-Wii years have shown us that in fact the casual majority rarely sticks around. They just move onto the next toy… and have zero brand loyalty.
One of the reasons, Nintendo is looking so confused is because they initially struck it lucky with the casuals, but now that casual base has evaporated (or moved onto facebook games), their traditional core (being battered and abused) has ventured off to see what the competitors are up to.
Truly a valuable lesson!
umar bastra
March 27, 2013 at 14:22
true… I don’t see how they going to pull casual gamers into BF … Like having Usher will make you want to buy a game. Nintendo struck when casual gamers didn’t have a place to go, but with the advent of smartphones and social games they losing out big time … the abused and desolate core gamers seem to mean nothing to companies. we are just cows to them
Sir Captain Rincethis
March 27, 2013 at 13:12
I would venture it’s the fact that these pricks think spending 200% of the actual budget of the game on marketing is justified! Very unrealistic, and it will affect us, just you wait…
Jim Lenoir (Banana Jim)
March 27, 2013 at 13:16
Great minds think alike… 😀
Purple_Dragon
March 27, 2013 at 13:30
Bang, nail on the head.
OVG
March 27, 2013 at 13:23
RE6 and DS3 also failed to reach the forecast of 5million. WTF? Buy buy John.
Sir Captain Rincethis
March 27, 2013 at 13:24
But I thought you loved RE6? o_O trolololo!
OVG
March 27, 2013 at 13:41
Its not worth 5million x $59 thats for sure.
OVG
March 27, 2013 at 13:24
NOT TO MENTION HE FCKED UP FINAL FANTASY BY LETTING GO 3 OF THE BEST TO MISTWALKER STUDIOS.
umar bastra
March 27, 2013 at 13:25
well sakaguchi had to leave
OVG
March 27, 2013 at 13:39
To many cooks over at the SQEENIX factory line all working on to many projects for every platform. Their work model SUCKS. Thats why they have to resort to Producing games instead of developing.
umar bastra
March 27, 2013 at 13:41
Sakaguchi buried a deep hole with Spirits within … but despite that, when they lost him, they lost FF. but you’re right SE needs FOCUS, gay hard FOCUS
Sir Captain Rincethis
March 27, 2013 at 13:27
Heavy SIGH?
Sir Rants-a-Lot Llew
March 27, 2013 at 13:45
Stop sighing darnit!
Sir Captain Rincethis
March 27, 2013 at 14:04
You know what I wanted to reply with? xD I will stop sighing, when the disappointment I felt with FF13 has been shared adequately 😉 Mwahahahah!
OVG
March 27, 2013 at 14:16
Lightning will return and its 1 character in the game so she has nobody to be all emo with 🙁
Sir Captain Rincethis
March 27, 2013 at 14:48
Great, so she’ll be sighing to the walls, floor, ceiling, YOU…And let’s not forget, emo has always been part of FF, but having someone like that, and Venille. No, Rince, STOP…
umar bastra
March 27, 2013 at 13:26
Kingdom hearts 3
Final Fantasy type-0
Final Fantasy Versus
Bravely Default:Flying Fairy
There you go Square … Recipe for success
Jim Lenoir (Banana Jim)
March 27, 2013 at 13:32
Dragon Quest! Just let those old Enix devs make Dragon Quest! For the love of all that’s good in Gaming… DRAGON QUEST!!
umar bastra
March 27, 2013 at 13:33
Well Dragon Quest is nothing but a psuedo-MMO now, but I do hope Dragon Quest 7 will be localized into engrish
Jim Lenoir (Banana Jim)
March 27, 2013 at 13:48
Your words dig deep, ripping flesh from bone… yet ring true… 🙁 Sigh! I miss those old JRPGs.
umar bastra
March 27, 2013 at 14:00
Indeed … I miss it so much too. Chaos Rings is the closest game I’ve played to a JRPG in a long time
OVG
March 27, 2013 at 13:43
Recipe for chocobo shit 😛
I still have no idea why people seem to think that Versus is the mother of all. What have they seen that I have not? It will be the same as XIII
umar bastra
March 27, 2013 at 13:46
kwee!!!!! I think not … and Chocobos don’t shit
OVG
March 27, 2013 at 13:52
KUPO? KUPO??
umar bastra
March 27, 2013 at 13:59
Stare into the cuteness!LOOK!LOOK how cute this moogle baby is….and now try to live a normal life
umar bastra
March 27, 2013 at 14:02
the moogle that was a cross bow lol
And a Sword
OVG
March 27, 2013 at 14:18
and a stone. I loved tossing Kupo into walls and shit :p
KUPO!!!!!!!! KUPO!!!!!!
umar bastra
March 27, 2013 at 14:20
LOL such a subservient moogle. need to call moogle protection services!
umar bastra
March 27, 2013 at 13:30
I for one hope that Matsuda can bring about the much needed change for SE. Focus Square … focus!I know you can do it again, please return FF to it’s former glory
Purple_Dragon
March 27, 2013 at 13:31
If the Bioshock figures were right it really says it all. How can you expect to do well when the marketing budget is the same as the cost of the game?! I really hope they didn’t spend 100mil on marketing for Bioshock.
Surely if your game is good you don’t need to market the shit out of it, to the point where it starts affecting costs.
Sir Captain Rincethis
March 27, 2013 at 13:33
They probably did, on market research for the fucking cover…
Purple_Dragon
March 27, 2013 at 13:35
Haha, yes, I forgot all about the stories about the cover!
Sir Captain Rincethis
March 27, 2013 at 13:36
Yeah, remember the negative feedback about the first cover? That probably cost them, (us) R40 mil!
Jim Lenoir (Banana Jim)
March 27, 2013 at 13:57
lol, market “research”…
Jim Lenoir (Banana Jim)
March 27, 2013 at 13:35
Some of the best and most effective marketing this gen has actually been of the viral nature. Low cost, slightly lucky… but oh so very effective. With social media like it is, you really don’t need to have an over-bloated advertising campaign any more.
Take Dark Souls for instance… that one trailer with that freaking awesome song on youtube… captured imagination more than a 18 foot billboard in Time’s Square or an expensive flashy commercial on TV.
umar bastra
March 27, 2013 at 13:42
give me a few gameplay clips and zeem zaala beem … you have hype …
Uberutang
March 27, 2013 at 14:22
Sad. City Interactive sold 2.5 Mil copies over 12 months of Sniper Ghost warrior. Such a success for them that they did game 2 and are busy with game 3. Goes to show that if you spend the money wisely, you can make more games from the profit.
Guest
March 27, 2013 at 14:30
Well at $40 the turnover alone would range just under US$144 million on Hitman alone. I know, some places get it cheaper. But you also get the Aussies who pay more.
Wyzak
March 27, 2013 at 15:03
If they are unhappy with 3.4 million after a month, I wonder how EA/Maxis are feeling having only sold 1 million copies of Simcity in basically a month as well. Only difference is that EA/Maxis might have lost about 10% of those sales again due to refunds.
Jim Lenoir (Banana Jim)
March 28, 2013 at 10:39
I just realised… Sleeping Dogs is a disappointment to Squueeeeenix, and that means…no Pork Bun 2. 🙁
That strange feeling I’m feeling is depression.