This “BAD” News is the BEST Thing to Happen to Square Enix

the past couple of years squareenix has released a number of video games with a lot of these games being in their double a tier and they released them back to back games like triangle strategy voice of cards Valkyrie elesium stranger of paradise Final Fantasy origin Star Ocean the Divine Force the list goes on and on and on sometimes multiple of these titles were being released back to back even and while some of these titles are fan favorites a lot of them have not performed too well at all both in terms terms of critical reception and sales this is something that cusan the new CEO has recognized and is trying to fix Square Enix makes a ton of games but many of those games are not huge successes and ultimately a large number of them end up being another for spoken or another foam Stars titles that everyone can see from a mile away are going to fail at launch and yet are still sent to their Death March well today we got some news that at first I thought was incredibly bad bad and a lot of people on social media are certainly spinning it that way and while it definitely is going to have its downsides I think it's also one of the best decisions that square earings can make and sends a good signal to me that this new CEO is not going to lead things down the same path that Mona did so please go ahead and hit that subscribe button guys we are so close to 97,000 please go ahead and push us over the edge as we aim for 100,000 subscribers by the end of the year squarex has recently announced they are going to be taking a $140 million hit for their content abandonment losses in other words they just canceled 22 billion yen worth of video games this includes both PC and console game development so these are HD games and not mobile games not MMOs so a ton of games are canceled and we likely will never even know which ones unless it was something that was already announced but as always before we get into the analysis of things I want to read the objective information to help you decide what's going on for yourself today Square enx released this statement squarex Holdings expects to recognize extraordinary losses pertaining to abandonment losses associated with its content production account on its books for the fiscal year ended in March 2024 as detailed below nature of the extraordinary losses at the meeting convened on March 27 2024 the board of directors of squarex Holdings voted in light of the myriad changes underway in the environment surrounding its group to revise the group's approach to the development of highdef games with the intention of being more selective and focused in the allocation of development resources as a result of a close examination of the group's development pipeline undertaken in keeping with this revised approach the company expects to recognize approximately 22.1 billion yen in content abandonment losses on its books for the fiscal year ended March 2024 Outlook the company is carefully reviewing its Consolidated forecast for the fiscal year ended in March 2024 to assess the potential for impact from the above or other factors should revisions to its forecast prove necessary the company will promptly disclose the same on one hand this is unfortunate because in that $140 Million worth of losses I'm sure there are a ton of games in there that you and I both would have wanted to play that being said there is also probably a number of titles in there that nobody wanted to play yet another babylon's fall unfortunately this also means that a lot of the more awesome games that squarex made during that time period such as neoe are probably not getting another game I hope that statement ages bad as I would love to see that series continue however for every Hidden Gem like Neo there were a ton of other lackluster games that were released and while these doublea games don't cost nearly as much to develop as any of the AAA games many of them still aren't really bringing in the money in order to justify their existence for example I know many Final Fantasy fans love stranger a paradise Final Fantasy origin however the sales of that game were not particularly strong with it being the fourth lowest debut for a final fantasy spinoff in Japan selling only 46,000 physical copies in its first week but at least that title managed to be a fan favorite whenever you look at titles like for spoken or foam stars or babylon's fall or Avengers or Chocobo GP these games were met not only with very mixed or outright negative reception most of them weren't even titles that were beloved by fans at all this is unfortunate in a way because Square was a big publisher of double A games whereas now double A games are slowly dying in favor of AAA games and indie games and this is something that kiru has commented on before when asked why have you been unable to slim your lineup down until now as our customers needs and the types of devices have Diversified we have tried to produce hits by developing a wide variety of titles rather than by focusing only on certain ones I believe this has resulted in the splintering of our resource pool meanwhile there have been clear winners and losers among the major titles released recently in the gaming market and it has become possible even for Indies to make their presence felt the market is increasingly polarized between Blockbuster and Indie titles but I feel that we have developed many titles that fell somewhere in the middle I want to make clear distinctions going forward then of course there is allocating resources as well because not all of these games are able a some of them are in fact tripa in budget like for spoken or like Avengers or Babylon however this is what kiru meant when he talked about being more selective on their resources putting money into titles that you have faith in and know will succeed and then really focus on marketing and getting the word out of course there is also concern about Final Fantasy 7 rebirth and Final Fantasy 16 and how the sales of those games have been going currently we don't know exactly how much Final Fantasy 7 rebirth has sold Final Fantasy 16 is still currently posted at around 3 million with no sales update in sight however with the PC version of Final Fantasy 16 planned it's safe to assume we'll be getting an update somewhere around then though I would imagine the title is somewhere close to around 5 million the current concern is that there seems to be a downward Trend in Final Fantasy sales I don't think by any means that either of those games failed in fact I both think they did relatively well however what's definitely clear is that recent Final Fantasy games aren't breaking any sales records FF as a series isn't growing in quite the same way you'd imagine I mean take Resident Evil for example the original Resident Evil 2 sold around 5 million units and Resident Evil 2 remake sold over 13 million units as of October of 2023 over double and close to Triple the sales of the original game which is a clear indication of just how much Resident Evil has grown that was the result of one of Resident Evil's most popular games getting remade and then with Final Fantasy 7 the original sold around 14 million units and Final Fantasy 7 remake has sold around 7 7 million is still a really good number and they did certainly profit on that game however it's quite clear to see that FF isn't exactly growing in popularity and certainly that is one of the major issues that's facing Square Innings of the games that were cancelled I don't think any of them were major Final Fantasy titles the idea that some people are afraid that Final Fantasy 9 remake got cancelled or Final Fantasy Tactics remake or anything like that I think that those are the titles that are still alive because Final Fantasy as a brand name does still sell pretty well even if it's not significantly reaching a brand new audience in a big way I also don't think any larger Dragon Quest titles or anything like that have been cancelled but do I think that various day life too was probably canceled behind the scenes yeah you can believe it I think ultimately that the benefit of this and why this is honestly good news at the end of the day is that instead of square enx just putting out a ton of titles in the way they did in 2022 and 23 they are going to focus on making quality games that sell to people games that people care about and that will review well and ultimately sell well and be cared about by fans I really couldn't help but think during that era where they were just putting out games every week you know for every five of these games that have terrible reviews don't really sell well and nobody cares about you could have Consolidated all of that budget into making a higher end game that more people were going to care about and it seems abundantly clear to me that c hu notices the same thing as well all of the money spent on foam Stars would have been better spent if it was on marketing Final Fantasy 7 rebirth so while it may be bad news in the short term I can't help but think in the long term that while yes unfortunately some games that people were probably looking forward to have gotten cancelled squarex wanting to prioritize quality over quantity is ultimately a great decision and one that is ironically going to allow them to produce more highquality games than ever theoretically this is something that I'm really eager to hear every everyone's thoughts on in the comments below so please leave a comment as I'll definitely be reading them and I will see you all in the next video

Channel: The Night Sky Prince

Views: 57,099

Keywords: final fantasy vii remake, final fantasy 7 remake, final fantasy 7 rebirth, final fantasy vii rebirth, ff7 rebirth, ff7 part 2, ff7 remake part 2, ff7 remake part 3, final fantasy 7, ff7, final fantasy 16, final fantasy xvi, ff16, ffxvi, state of play, final fantasy 7 demo, ff7 rebirth demo, ending explained, ff7 rebirth theory, ff7 ending analysis, square enix

Id: LSj6XGhBu24

Length: 9min 37sec (577 seconds)

Published: Tue Apr 30 2024