Despite releasing some damn good games this generation, it isn’t easy turning a profit over at Square Enix right now. For ever Sleeping Dogs success that they’ve had, there’s been a Final Fantasy game that has sucked the profit right out, thanks to lengthy development times. And right now, Square Enix is looking to change that issue.
The company released their briefing onto the web this week, and apparently big budget game development is killing them. And here I was thinking that unrealistic expectations happened to be the culprit.
According to their results briefing via Joystiq, the company is currently $134 million in the hole for the latest fiscal year. Obviously, some new ideas are needed in order to keep Square Enix afloat, and Senior Exec. Managing Director Yosuke Matsuda has three of them.
The first idea is to start developing games based on regional tastes, while plan deux is to start focusing on mobile platforms. But the biggest idea they have so far is to completely overhaul their ideas for long-term development games. In other words, more games with a quicker turnover rate.
And with that specific idea, it looks like Square Enix is going to cast their eye onto crowdsourcing initiatives, such as Kickstarter. “We’re no longer in an age where customers are left in the dark until a product is completed,” Matsuda said.
We need to shift to a business model where we frequently interact with our customers for our products that are in development and/or prior to being sold, have our customers understand games under development, and finally make sure we develop games that meet their expectations.
I think it is necessary to review the definition of ‘AAA Title,’ and we need to pursue a new type of blockbuster title, in addition to the conventional-type of blockbuster
Square Enix is busy restructuring themselves pretty heavily following that financial loss. And while I like the idea of them starting to revaluate what a “Triple A” game is (Hint: It’s a lie of an idea used to gouge consumers of extra cash), I really hope that this forces them to also consider going back to basics. After all, you don’t need to throw millions of dollars at a game for it to be “Triple A” quality. And that’s an idea that the industry needs to get rid of.
While I detest the idea of a rushed game that is patched later on its life, giving developers all the time in the world to sit on their asses and figure out what kind of dungeon fun they’d like to have in their game isn’t good for business either.
They owe it to the fans to keep things on track.
Last Updated: May 28, 2013
matthurstrsa
May 28, 2013 at 13:38
In my mind, there is no definition for triple AAA, unless we’re talking about marketing budget.
Also, you can’t just listen to customers all the time, they don’t always know what they want. And if I was a creative director and they kept changing stuff that I suggest because Timmy wants it in the game, then I would facepalm my way outta there.
Sir Rants-a-Lot Llew
May 28, 2013 at 14:01
I believe a AAA title is one that is properly finished at release with a minimum amount of bugs that aren’t so glaringly obvious that you sit and wonder how it ever got through QA. It should be polished and have a good story line/gameplay. None of which need to break the bank to develop. It just needs to have some proper attention given to it before release.
Rince an repeat
May 28, 2013 at 14:04
MoH? D3 Sims? TRololol!
Sir Rants-a-Lot Llew
May 28, 2013 at 14:11
Lol, wanted to include D3 in my post to show an example of a game that claims to be a AAA, get’s labled as a AAA, gets a AAA price but isn’t actually a AAA.
Trevor Davies
May 28, 2013 at 14:13
But it is, now open wide & say AAAAAAA
Rince an repeat
May 28, 2013 at 14:17
Hahah! Nicely played sir.
matthurstrsa
May 28, 2013 at 14:08
I agree, but that certainly isn’t the definition at the moment. By that definition, an indie game could be AAA, but none are called that. I like your definition, but then you would have far fewer titles being called AAA than currently are.
Sir Rants-a-Lot Llew
May 28, 2013 at 14:10
That’s exactly my point 🙂 I don’t believe many true AAA titles still exist.
Many games get the title because of the budget that was spent but none of them actually live up to my expectations of what AAA should be. Which sucks 🙁
matthurstrsa
May 28, 2013 at 14:13
Yeah man, I feel you. I’m very careful with my money these days. I do think though, that its a pendulum and it will swing back to a focus on quality games. Look how great 2013 has been already. Sure there was A:CM but we’ve also had Bioshock, Tomb Raider, Metro to name but a few.
Sir Rants-a-Lot Llew
May 28, 2013 at 14:17
Agreed. There are a lot of companies who I think are starting to grasp the fact that we want complete, polished games that aren’t commercialized. It’s still a far way off but it’s a start.
Admiral Chief Commander
May 28, 2013 at 13:40
you call that a hammer?
Tasty peas mixed with porridge
May 28, 2013 at 14:00
BAM
Rince an repeat
May 28, 2013 at 14:02
I, I did…
Admiral Chief Commander
May 28, 2013 at 13:45
screw aaa i say, viva to the indie games!
Daniel Keevy
May 28, 2013 at 13:50
It’s empty words. EA said the same thing and decried expensive games, and yet they still charged full price for old games on Origin. The anti-consumer movement amongst the publishers has started waking the dragon.
Sir Rants-a-Lot Llew
May 28, 2013 at 13:50
The term AAA has pretty much become synonymous with “Broken on release”. Unfortunately the few rare gems that still are true AAA no longer can keep everyone going.
I think it’s a good thing that they are trying to rethink their AAA titles but I still don’t think a yearly release option is the way to go.
But I do understand that they need to start getting cash in every year instead of trying to get it in huge amounts every 3 years or so. Catch 22 really. Will be interesting to see what they come up with.
Macethy
May 28, 2013 at 13:53
Deus Ex Modern Warefare, Deus Ex Modern Warfare 2, Deus Ex Black Ops, Deus Ex Modern Warfare 3, Deus Ex Black Ops 2.
There is Square Enix release schedule for the next few years…
Admiral Chief Commander
May 28, 2013 at 13:53
*interested*
Tasty peas mixed with porridge
May 28, 2013 at 13:56
RE-HIRE the FATHER OF FINAL FANTASY and his MUSIC BUDDIE. Give him STAFF, A BUDGET and a TIMELINE. Allow him CREATIVE FREEDOM!!!!
Hay Presto BOB IS YOUR FCKING UNCLE.
Charles
May 28, 2013 at 13:58
Man, these big companies / publishers / developers just doesn’t make any sense at all. None. Why make FFXIII when they knew for a fact that that is NOT what the RPG game buying public wants. Microsoft with the xbone… Need I say more? Capcom with Resident Evil 6. Who the fuck makes these god awful multi-million dollar decisions? It’s as if these people want to lose money. They don’t want their products to be profitable. Really, what the fuck????
Wyzak
May 28, 2013 at 13:58
I support them on their endeavour. If they provide quality games at a good price I will buy it. Here’s a hint, if your marketing budget exceeds your development budget there’s a problem!
Umar No Shana
May 28, 2013 at 14:02
Im all for them changing it up, I think they need to re look at things…BADLY
Jonah Cash
May 28, 2013 at 14:04
I really enjoyed Hitman: Absolution and I am still in love with the new Lara Croft!! And now I am sad that they will have to rethink their AAA Titles….. I want another Tomb Raider like the one I played earlier this year!!!
Rince an repeat
May 28, 2013 at 14:07
Agreed. I started playing it last week and I am really enjoying the immersion of it.
Jonah Cash
May 28, 2013 at 14:27
Look, don’t get me wrong. There are some problems with it but the story and gameplay is awesome!!! (But she is definitely the chick who can take the most pain I have ever seen, not even Nathan Drake would be able to take the punishment that she took in that game)
Verrayne
May 28, 2013 at 15:12
I finished Tomb Raider this past weekend (played it on my pc) then I tried playing Uncharted 3 yesterday on my PS3. The level of polish Tomb Raider had is insane. It is one of the best games I have ever played. The combat is also so much better. I hope crystal Dynamics gets the go ahead for another.
Tasty peas mixed with porridge
May 28, 2013 at 16:20
They just broke even 🙂
Verrayne
May 28, 2013 at 16:49
Great news!
Ultimo_Cleric_N7
May 28, 2013 at 14:06
AAAND IF YOU AINT DOWN WITH REDEFINING AAA, WE GOT 2 WORDS FOR YA…….
Kromas
May 28, 2013 at 14:30
CoD: Final Fantasy Edition?
Yobokkie
May 28, 2013 at 14:38
I love Square Enix, a lot of my most played games on steam were made by them, so I really am holding thumbs that they find a groove that works for them and they can keep producing more Deus Ex, Just Cause, Hitman, Tomb Raider, Sleeping Dogs etc. Hey maybe it’s even time to revive commandos… but the proper top down one. I’m sure those games would be cheap to produce.