Square Enix In The Red, Posts $140 Mill Loss, & Cancels Games

Oh, man, as if it wasn’t bad enough that we lost Akira Toriyama, leaving his legacy famous for Dragon Ball and Square Enix’s timeless JRPG Chrono Trigger. Now we find out Square Enix is actually bleedin’ money, by postin’ a $140 million loss, too? Oof, that stings, but oh, it gets even worse, folks. The unannounced games that were either in the plannin’ stages or well underway in the production stage are most likely canned, too.

This sucks, and we’ll give you the news as well as our analysis of WHAT-THE-FUDGE went wrong. Buckle up, folks~. We’re ‘bout to eviscerate corporate fools, like the morons of WB Games who wanna embrace the live-service model in gaming. Here we go!

How The Hell Square Enix Got To The Point Of The $140 Million Loss?

Square Enix is posting a staggering loss.

So, here’s the scoop ‘bout Square Enix postin’ the whoopin’ loss of $140 million. Accordion’ to Insider Gaming: The board of investors, which’re money grubbers, voted last month in March 2024 for ‘changing its approach to HD games.’ That’s basically corporate lingo for sayin’ we don’t wanna invest in games that have a niche audience. Well, here’s a newsflash ya’ corporate ding-dongs!

Why would a game sell well if y’all don’t spend any money marketin’ the hell out of it? Like seriously, it’s not rocket science! Square Enix needs to get it together, but it seems highly unlikely under the present dunce President of the company. Basically, they did an internal review of the projects in the pipeline. They’re gonna be, and we quote, ‘selective and focused in allocating development resources.’

Related: Ubisoft Paywall Idiocy: Star Wars Outlaws Season Pass, And Editions.

This whole mess came ‘bout when Square Enix basically went on a cancellation spree of internal development. The wording they’re using is fancy; we gotta give’em that. Like the phrase, ‘Content Disposal’ costs is gonna justify denyin’ fans holdin’ out hope for sequels or remakes. Seriously, what a disaster by the executives.

Some games aren’t fully kicked to the curb, though. Some have been reduced in scope… Which is never a good sign. Need proof? Remember Suicide Squad Kills The Justice League, which basically killed the Arkham Legacy? It was because of corporate mandates like these. We even had to come up with some alternative games to help y’all get over the bad taste of Suicide Squad.

What Does This Mean Going Forward For The Company?

Well, let’s see here: there’re gonna be more internal checks. Square Enix will be grippin’ the reigns tighter to prevent future losses like these. This will mean stiflin’ of creativity and trend-chasin’ that’ll lead to nothin’ even remotely good.

We feel for the poor souls workin’ there; we really do. Like, we get, the legendary Japanese video game creators have the benefit of face value to move elsewhere. But the same isn’t true for the folks who’re startin’ out and have to comply with company policy. So, the corporate wheel just continues to move, and we’re left with a dilemma.

The power struggle between executives and creatives will not make for a healthy work environment. Every single game that does get to see the light of day will be met with a severe development crunch for ‘cost-savin.’ The game will go through scrutiny of the executives who’re out-of-touch imbeciles. The final product will ultimately suffer, too.

Final Fantasy XVI, Final Fantasy VII Rebirth Sales Below Average, Square Enix Loss Makes Sense

Sales of FF games recently fell way below expectations.

Look, we might be soundin’ overly harsh in our criticism of Square Enix for their loss, but it’s tough love. We don’t actually wanna see any gamin’ studio fail. But Square Enix really needs to take a good long look at when it all went wrong. Like, no joke, if such huge hitters from Square Enix like Final Fantasy VII Rebirth or Final Fantasy 16 are fallin’ below sales expectations, there’s gotta be a reason, right?

Related: Classic Games That Deserve Remakes Like Final Fantasy VII Rebirth.

It’s not like the games were bad; no, quite the opposite, in fact. We enjoyed the heck out of both titles. So, why did they fall below expectations? Well, it’s simple, really: Square Enix expectations were wild, hence the loss. Seriously, it’s not like the game didn’t sell enough units; they absolutely did. If they wanted to reach a higher milestone, they should’ve done better marketin’ for it. Just look at Sony’s partnership with Arrowhead Game Studios for Helldivers 2, which surpassed the 8 million unit milestone.

Sony’s marketin’ strategy is just ahead of the curve, and that’s why their games sell so well, too. But let’s face it, it’s probably a release window timin’ thing, too. What do we mean by that? Well, consider: after Final Fantasy VII Rebirth was out, there was another huge release soon after. We’re talkin’ ’bout the impeccable and trail-blazin’ action RPG, Dragon’s Dogna II. That game lit up the sales chart by 2.5 million units and set the benchmark for open-world exploration and combat in RPGs. When there was competition, the Square Enix offerings couldn’t measure up, and the company took the loss.

Which Square Enix Games Will Be Affected The Most?

The loss is gonna hurt Square Enix titles in the niche category.

Square Enix is gonna find itself with a very limited gamin’ output, and it’ll be on them alone. The niche titles that offered somethin’ charmin’ and unique with indie vibes but full of creativity are gonna be the first ones on the chopping block. Basically, brand recognition will take priority over antyhin’ else. So, your Secrets Of Mana, your Octopath Traveler, your Bravery Default, the Star Ocean games, and so on are in trouble.

Niche titles will be  no go.

We’re not gonna lie: that’s gonna sting for us, too. We grew up on these titles, and not bein’ able to play their sequels is a serious downer. Square Enix will rely on trusty ol’ Final Fantasy XIV money, the MMORPG that’s in the GOAT discussion for its own genre. But, that’s not the same as other AAA RPGs. Some titles like Final Fantasy and maybe Nier will be relatively safe ’cause that’s all they have now.

Final Thoughts

Well, that’s the news and our take on it. The future of games in light of Square Enix doin’ a goof with their monetary loss. We’re honestly saddened by this development. ‘Cause the hard work of the devs will go to waste. Especially for the ones whose games were in production when this bombshell dropped. Anyway, how do y’all feel ’bout this development? Tell us in the comments below, and while you’re at it, tell us which is your favorite niche title from the company, too.

We love comparin’ notes with our readers, so, if you’ve got any hidden gems, send’em our way. Anyway, that’s gonna do it for today; we’ll use the time off for Labor Day to rake in some game time. But before we go, we’re gonna leave y’all with some pallet-cleansin’ news that’s cool and is gonna uplift your spirits. Y’all ready for this? Get this: The Lollipop Chainsaw Remake is set to sizzle the summer with a 2024 reveal. You’re welcome, internet.

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Rafi Ahmed
Rafi Ahmed
Retro(and modern) gamer, proud comic geek, anime connoisseur, and opinionated peach without a filter. I'm bringing you hot takes, recommendations, and what-if fantasy scenarios and championing the gamer cause against corporate greed. You're welcome!

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