Square Enix goes multiplatform, focus on quality then quantity

Entropi

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Well well well....
 

Bryank75

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Time for Sony to forget about the vanity of buying Paramount and start looking at Square and From or Capcom.

I didn't think it was a good idea for more consolidation in gaming BUT if Sony is willing to senselessly spend 26 billion for prestige more than anything tangible...then I would push to take a chunk of that and instead secure ownership and importantly control of these critical partners.
 

ethomaz

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That was what I explained.
Small boost in sales (26%) driven by big increase in development costs (100%).
There is no way to have profit like that.

MMO sales decreased just 11% but the profit continued at 40%... so the decrease in sales here didn't impact the profit.

BTW they talk about the boost in sales that is indeed good in overall things (no increase should be drastic bad) but they released 2 FFs in the FY and had only a 26% increase in sales.... last FY they didn't have any big title that I remember?

Edit - These where the games in last FY.

image-2024-05-13-120808369.png
 
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This was questionable at the time he said it (I even replied to them a bit about the comment), and it's still a bad take now.

The idea of MS plastering FF on billboards to promote the Xbox version somehow sells more copies on PLAYSTATION, when you just said promoting it with PlayStation doesn't expand the audience (which would assumedly mean on PlayStation even if in addition to other platforms), is hilariously bad.
 

Bryank75

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Facts. Both are focusing on short term gain for long term pain to try and get out of this situation

It’s stupid as hell

They are fueling costs to increase exponentially instead of really addressing the root of the problem.

Cost control keeps things sustainable indefinitely. Adding more work and complicating the development process just bloats everything more.
 
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Entropi

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Lets fix our out of control costs by adding more development costs... fucking idiots. Same attitude as Sony though.

That's what I was saying. SE has a cost control problem, which should be addressed urgently. The going multi-platform thing doesn’t make sense because, well, they are already putting games on every platform.
 
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Luffy123

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They are fueling costs to increase exponentially instead of really addressing the root of the problem.

Cost control keeps things sustainable indefinitely. Adding more work and complicating the development process just bloats everything more.

Honestly it doesn’t even make sense their reasoning same as Sony

They’re both following the same strategy it’s so stupid
 

ethomaz

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Lets fix our out of control costs by adding more development costs... fucking idiots. Same attitude as Sony though.
Yeap... they are trying to increase sales/revenue to offset the high development costs.
They should had choose to decrease development costs but they seems to not want to drop the quality.

Do you will accept lower quality in HD titles?
 
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ethomaz

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Time for Sony to forget about the vanity of buying Paramount and start looking at Square and From or Capcom.

I didn't think it was a good idea for more consolidation in gaming BUT if Sony is willing to senselessly spend 26 billion for prestige more than anything tangible...then I would push to take a chunk of that and instead secure ownership and importantly control of these critical partners.
It is not $26 billion from Sony themselves because it is a Joint venture.
If it is 50/50 then it will be $13 billion from Sony but I don't know the details of the deal between them.
 
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Yurinka

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Lets fix our out of control costs by adding more development costs... fucking idiots. Same attitude as Sony though.
To make AAA is very expensive and their costs increase every generation. If you want more AAA then the costs will increase, and obviously you'll have to find more revenue sources to make them profitable.

Sony's moneyhat to keep some of them -at least temporally or in consoles- exclusive is only a part of that revenue, and isn't infinite.

Time for Sony to forget about the vanity of buying Paramount and start looking at Square and From or Capcom.
It isn't vanity, Square Enix makes around $2.5B/year, Kadokawa around $2B/year and Capcom makes around $1B/year. Around $5.5B/year combined, and part of it isn't from gaming.

Paramount makes $30B/year, around 5.5x times that. And to acquire Paramount is cheaper or similar than it would cost to acquire SE + Kadokawa + Capcom because of the debt. And well, Apollo will pay part of it and very likely will get the part that Sony can't -directly- acquire.

And well, if SE, Kadokawa and Capcom don't want to sell Sony can't buy them.
 
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voke

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Time for Sony to forget about the vanity of buying Paramount and start looking at Square and From or Capcom.

I didn't think it was a good idea for more consolidation in gaming BUT if Sony is willing to senselessly spend 26 billion for prestige more than anything tangible...then I would push to take a chunk of that and instead secure ownership and importantly control of these critical partners.
I think that time has passed.... 2020 was primetime for Sony to make that move, towards square in particular. capcom is breaking records every year, they aren't looking to sell unless they get massively overpaid. I think From already have a deal with sony, they bought 15% of the company for well over $100 million... i think FROMs side of the deal is a new AAA game for PS5.
 

ethomaz

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To make AAA is very expensive and their costs increase every generation. If you want more AAA then the costs will increase, and obviously you'll have to find more revenue sources to make them profitable.

Sony's moneyhat to keep some of them -at least temporally or in consoles- exclusive is only a part of that revenue, and isn't infinite.
That is the biggest issue... it is like a double-edged sword.
You cut costs, decrease quality.
You rise quality, increase costs.

So your only option to rise quality is to rise revenue to cover the increased costs.
 

Johnic

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I think that time has passed.... 2020 was primetime for Sony to make that move, towards square in particular. capcom is breaking records every year, they aren't looking to sell unless they get massively overpaid. I think From already have a deal with sony, they bought 15% of the company for well over $100 million... i think FROMs side of the deal is a new AAA game for PS5.
This. Sony spent years screwing around with acquisitions, focusing on shit no-name GaaS studios, while letting their partnerships lapse. They're shit at securing IPs.
 

Luffy123

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I think that time has passed.... 2020 was primetime for Sony to make that move, towards square in particular. capcom is breaking records every year, they aren't looking to sell unless they get massively overpaid. I think From already have a deal with sony, they bought 15% of the company for well over $100 million... i think FROMs side of the deal is a new AAA game for PS5.

Honestly they can still buy them

Its not like this isn’t the same bullshit strategy Sony is doing these days

Multiplatform Bungie , PC iniative
 

Yurinka

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That is the biggest issue... it is like a double-edged sword.
You cut costs, decrease quality.
You rise quality, increase costs.

So your only option to rise quality is to rise revenue to cover the increased costs.
Yes. And more importantly, since the costs of making AAA increase a lot every generation (basically double every generation), they must also ensure that revenue increases similarly.

In the past, that increase wasn't that important because the revenue was way bigger than the costs, but generation after generation the game got smaller.

And being limited to a single platform is very difficult to double the revenue. So this is why all AAA publishers have been expanding during these years to multiplatform and worldwide releases, plus increasing prices, releasing DLC and where it makes sense expanding to GaaS. And also making movie/tv show adaptations when it makes sense.

To be limited to a single console would be a suicide in the mid-long term for AAA publishers, even platform holders. They may still have timed console exclusive or platform specific perks, but if they want to continue making big ass AAA, all of them will have to expand to multiplatform.
 

Bryank75

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Yeap... they are trying to increase sales/revenue to offset the high development costs.
They should had choose to decrease development costs but they seems to not want to drop the quality.

Do you will accept lower quality in HD titles?

Well we will now get less quality since PS5 will not be the only focus....

Costs can be controlled in many ways.