Square Enix reports Loss of 1.6 Billion Yen for Q1

#121mrklarrydPosted 8/14/2013 11:02:51 AM
GigerSupreme posted...
mrklarryd posted...
GigerSupreme posted...
HeyItsZant posted...
GigerSupreme posted...
believe it or not, FF brings in more numbers than KH.


Believe it or not, KINGDOM HEARTS 3 WILL SELL LIKE HOTCAKES.


it will need to sell more like gasoline than hotcakes... seriously, it will need like 7-10 million copies sold. bear in mind, COD makes like 14-17 million in copies sold. unless SE cuts alot of corners and makes the game very cheaply (unlikely, due to how poorly managed SE is as a studio) they wont break even. do i need to remind you how Tomb Raider was considered a financial failure despite the fact it sold over 4 million copies?


This doesn't work the way you think it does. If a console game sells 10 million copies, it isn't breaking even; it's far beyond that point.

And Tomb Raider wasn't a "failure" in that 4 million units shipped isn't enough to recoup development costs. Insofar as it failed at anything, it failed at succeeding to a degree that would completely mitigate catastrophic losses (last year, not this year) elsewhere.

I find it difficult to accept that someone who claims to work in product development--in any industry--does not know the difference between "breaking even" and "meeting projections", as these are two totally different things.



you really have no idea how many people work on a single AAA game do you? all of them need to be paid, and the time it takes to develope compounded with all those salaries and that isnt even counting the cost of marketing which can cost just as much, sometimes even more than the developement of the game. bear in mind, 90 percent lf these individuals are college graduates.


Boring dodge.

In all large scale technical product development, people are in and out. A graphic designer does his piece, then moves on to something else. The DB people do their part, then move on.

I find the implication that every person in the video game industry who does anything for a AAA game has his or her salary charged to that particular cost center for the entire duration of its software development lifecycle no less dubious than your prior implication that "not meeting projections" = "the game did not recoup costs."

Budgets will vary from game to game, but it seems to me that if a game sells north of 2 million copies a sequel is generally greenlit. Boards won't do that for a product that does 20% of the sales it needs to break even.

In your fantasy world in which the break even point is 10 million units, the only console games in development at this time would be Call of Duty, Battlefield, Fifa, Madden, GTA, Mario, Zelda...and that's pretty much it.

Games like Uncharted and Dark Souls would be seen as horrendous failures, not things that inspire copycats, which is what actually happens.
#122KOTRsssPosted 8/15/2013 9:02:10 AM
Doesnt look good. They failed to plan for a simultaneous release, so LR, which we know will sell better outside of Japan than within, is going to be overshadowed by the release of the PS4 in the western world. This isnt even considering the fact that LR will probably only sell as well as FFXIII-2, and that's being optimistic.


Awful management is awful. What can you do?
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#123KOTRsssPosted 8/15/2013 9:22:29 AM
mrklarryd posted...
Just to reiterate for those who missed it, this is a 400% reduction in losses compared to the same quarter last year and, based on this quarter, analysts project this company to finish the fiscal year in the black.

Wait. Does the term "record losses" not actually refer to losses that are a new record?
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Gamefaqs has taught us that academic fields like literature don't exist because of teenagers that say "well that's just your opinion and I disagree."
#124Elice_CarolPosted 8/15/2013 10:44:14 AM
http://i1263.photobucket.com/albums/ii632/Alice_Heartily/nSm3Q6r_zps28583077.png
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"The only thing that gets me high is the musky scent of my enemy's fear.'' - Stephen Colbert
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#125mrklarrydPosted 8/15/2013 11:19:21 AM(edited)
KOTRsss posted...
mrklarryd posted...
Just to reiterate for those who missed it, this is a 400% reduction in losses compared to the same quarter last year and, based on this quarter, analysts project this company to finish the fiscal year in the black.

Wait. Does the term "record losses" not actually refer to losses that are a new record?


Think the term the author used was "extraordinary losses," not record losses, but, best I can tell, he or she has misunderstood what these loss reports mean.

Long and short of it is, in Q1 (which is May 1 - July 31 in Japan) Square lost a large amount of yen (but much less than they did in the same period last year). Videogames being, in large part, a seasonal product with a non-seasonal workforce, this is to be expected during quarters they don't put anything noteworthy to market, such as Q1 2013.

The tone from a business publication is quite different.

http://www.gamesindustry.biz/articles/2013-08-06-square-enix-cuts-quarterly-losses-by-75-percent-remains-in-red

From the same source material, their takeaway is that Square Enix expects to be back in black for the first time in several years.

And yes, I must have flipped a denominator or something napkin-mathing the calculation on its loss reduction. Real number is 75% reduction in losses, according to gamesindustry.biz.