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New Square Enix president promises a review of the company

Yosuke Matsuda says he'll look at the publisher and squeeze out what doesn't work.

320 Comments

New Square Enix president Yosuke Matsuda has promised a fundamental review of the publisher.

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"After having succeeded the important role as the president, I plan on reviewing all Square Enix duties, business and assets on a zero-based budgeting standpoint," Matsuda explained in a briefing to investors (via Siliconera).

Matsuda became Square Enix president last week following the resignation of Yoichi Wada amid the announcement of "extraordinary losses" in the company's financial report. Wada had held the role for over a decade.

"I'd like to fundamentally review what works and what doesn't work for our company," continued Matsuda, "then cast all of our resources towards extending what makes us successful and thoroughly squeezing out what doesn't."

Phil Rogers, the current CEO of Square Enix Europe, will be promoted to company director and assist Matsuda.

Yoichi Wada will remain at the company in a non-managerial role. "I will be retiring from the line of management, but I plan to work on site as a way to pay my debt to the company," he said.

Last week Square Enix blamed the poor performance of its titles in America and Europe for its unsatisfactory revenue, and instigated a major restructuring process that the company expects will lead to a loss of 10 billion yen for the financial year ending March 31.

The publisher is currently working on Lightning Returns: Final Fantasy XIII and HD versions of Final Fantasy X and X-2. A new Final Fantasy announcement has been promised for E3 2013, and Square Enix is also in charge of Eidos Montreal's next-gen reboot of Thief, which is due for release in 2014.

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soeppel

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I think this is sad news. Square Enix has actually done the opposite of EA - they've tried not to be evil.

Sleeping Dogs, Tomb Raider and Hitman: Absolution are all games where Squenix has backed off and supported the developers. United Front Games even said they where supportive when they wanted to make a higher-quality PC version of Sleeping Dogs. They played nice but in the end it didn't pay off.

Oh well. Guess this means massive layoffs and focusing on producing crap that sells to the average gamer. Or maybe another MMO.

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joke_man

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@soeppel

But those 3 games all sold extremely well...

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inebriantia

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Edited By inebriantia

@joke_man @soeppel Actually Sleeping Dogs only sold about 1.6 million, Tomb Raider has only sold 3.6 and they said it needed to sell 5 mil to be successful for their budget, and I'm not sure about Hitman, but I believed it sold a few million under what they needed it to as well.

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joke_man

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@csward

BTW, those numbers are physical sales only. They don't include electronic sales through Steam, etc. In other words, the games sold even better than what we're being told (which was already great) and they are still reporting they didn't meet their expectations. Wow...

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csward

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Edited By csward

@joke_man @inebriantia @soeppel Well said. When did every publisher think that selling 5 million copies of all their games at full price was doable?

Their budget would've been a lot smaller had they not made Tomb Raider and Sleeping Dogs open world games and instead made them level based like in the past.

Every game does not need to be open world.

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joke_man

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@inebriantia @joke_man @soeppel

3.4 million copies of Tomb Raider sold in less than a month, making it the best release this year so far. Those numbers are AMAZING. The problem isn't actual sales numbers, which are outstanding. I mean, the game is a reboot and sold better than all previous titles for crying out load...The problem is/was their absurd projections and perhaps their budget.

Also, 1.6 million copies of Sleeping Dogs is equally amazing when you consider it's a new IP and new IPs historically never do that well (period). Also, the marketing for that game was very minimal next to most "AAA" releases. The game sold so well not because they paid to market it, but because of good reviews, word of mouth, etc. Again, considering the facts, this game sold very, very well. If it didn't make a profit, I'd be very surprised. I think, again, it came down to expectations.

As for Hitman, I believe it sold around 3.2 million copies to-date. Again, those are GREAT numbers. New publisher, essentially a reboot, etc. They probably grossed around $150 mil. Great numbers...What were they expecting? Again, it all comes down to their expectations, and perhaps budgets, being completely out of touch with reality...


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soeppel

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@inebriantia @joke_man Yeah. In the linked article those three games are specifically mentioned as part of the reason for the "extraordinary loss" in revenue.

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thorn3000

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"then cast all of our resources towards extending what makes us successful and thoroughly squeezing out what doesn't." lol, has anybody seen that statement means that they will go down the way EA and Activision are going? ....when they crunch the numbers as he wants to, they will ultimately see rehashing the same every year and putting in a lot microtransactions is what brings the company the most money (see COD sales)....

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csward

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Edited By csward

@thorn3000 Lets hope not...We have enough EAs and Activisions in this world.

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marcsmashing

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@csward @thorn3000 Don't forget Ubisoft, it's getting there fast as well always popping out AC's, because "that's what gamers want!"...

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Sevenizz

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Edited By Sevenizz

'looks at videogame library'

'has one Square Enix game called Hitman Absolution'

Yea, some restructuring might be needed.

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CecilChups

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Edited By CecilChups

@Sevenizz lol

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Apastron

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Final Fantasy Vs XIII? :(

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XZeroKPS

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Edited By XZeroKPS

I just want another new good FF game. I liked 13, but not 13-2... 14 was... who even approved that out of the gate? It was nicknamed 4.0 for a reason.

and a Kingdom Hearts 3. I really would like this... and not on a damn handheld. I want to see it on the PS4.

Eventually, you might as well make a FF7 remake or HD version of it because you would make so much money that your ears would bleed from being so high up from sitting on top of your money pile. I have no interest in the game really, but a lot of other gamers do.

I would like more of your RPGs to show up on PC as well. What's the matter with you? Why release the Last Remnant and Hitman and all of these other games on Steam, but leave out other games?

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Teebown24

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@XZeroKPS my only worry is that the way they are now, a ff7 remake would be a sink or swim proposition. this is simply because if they held true to the quality of the original game for the remake they would be rolling in money. however, if they treated it the way they have been treating the ff franchise lately and butchered it, it would destroy them.

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XZeroKPS

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@Teebown24 Maybe it will be their trump card when money gets tight.

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deactivated-5c60a3d1c2911

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Start supporting PC gamers again and I will start buying your games again.

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moffattron9000

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Putting Phil Rogers in a more prominent position suggests to me that their going to put their Western games in a more prominent position.

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Sevenizz

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Here's an idea - focus on fun in gaming rather than the usual 40+ hour boring turn based RPG that most gamers don't give a crap about.

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Sidian1626

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Edited By Sidian1626

@Sevenizz speak for yourself. if sqweenix produced anything like you described in recent history they would be doing fine. 10 was the last game like that and was ruined by lame characters like tidus and wakka (WHO THROWS A BALL AS A WEAPON!?!?!) and the same puzzle in every damn temple (take orb here rinse and repeat). since then its been mmos and bad battle systems.

just because you find 40+ hours boring i find that i connect much better with the characters over a fully drawn-out story and certainly appreciate getting more play time for my money. not all of us gamers have the attention span of a squirrel and want our campaigns to be done in 5-10 hours.


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CecilChups

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Edited By CecilChups

@Sidian1626 @Sevenizz lol.

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Sidian1626

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@Sevenizz

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JusXice

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I remember how people love JRPGs during the PlayStation Era such great memories. Their were some FPS games, but not as popular on console as of today maybe on the PC back then. I was such a JRPGs die hard fan and I was that type of person that refuse to play FPS games because I thought they were dumb, but once I played MW2 I got addicted lol

it was the same thing back then, I still didn't get why people love golden eye 007 on Nintendo 64 so much. To me it was just some boring shooting game but when I look at Final Fantasy it was a fantasy any kid could dream of going on an adventure fighting monster great stories and amazing music

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XZeroKPS

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@JusXice "I still didn't get why people love golden eye 007 on Nintendo 64 so much." Because friends... and a lot of people like playing a game with guns and being a spy. It's generally a fun experience.

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WhiteStormy

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@JusXice I guess making consoles with online capabilities is what killed the JRPG.

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armin0jrpg

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WE WANT VERSUS 13

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moffattron9000

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@armin0jrpg NO WE DONT

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Sidian1626

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@moffattron9000 @armin0jrpg we most certainly do not

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Vagnar

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I was happy for a while, then I realized this is probably gonna bite many gamers in the ass. The reason we've seen all these X-2, XIII-2 etc games is because the games cost so much to produce it would be a total waste to use it's assets and engine just once.

The solution? Make games cheaper (graphics, cut-scenes etc get toned down). How to do it without gamers complaining about the quality drop? Make all future numbered Final Fantasy games for handhelds. They already did it with Dragon Quest.

I have nothing against handhelds (I own a well used PSP while waiting for something to catch my eye on the VITA), but it just wouldn't be the same.

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Bhemont

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@Vagnar Square Enix might have to focus less on "Erhmerged Graphix" and more on storytelling, most of their games have been lacking in that particular section. They should make more games like FFVII - IX, DQVIII and less like FFXII and XIII, thank you.

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XZeroKPS

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Edited By XZeroKPS

@Bhemont @Vagnar Please, less like DQ... graphically, story-wise, and gameplay-wise. I'd fall asleep.

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WhiteStormy

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Edited By WhiteStormy

@Bhemont @Vagnar "Story over graphics" has always been my preference. That's why Suikoden has always been my RPG of choice. Too bad Konami is run by idiots that rival Square's idiots in the poor management category.

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Vagnar

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@Bhemont @Vagnar Sadly their best story tellers have left. I'm hoping with this new President's enthusiasm for starting over they may be more willing to look for fresh new talent instead of relying on the guys who've been producing sub-par stories all this time.

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RockySquirrel

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Remember to sack anyone who thought FF14 would be fun for gamers...

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jazilla

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I would like to see a game called Final Fantasy: Boy or Girl? They show you pictures of Final Fantasy characters and you have to choose if it's a boy or a girl. If you guess wrong, it's perma death for your toon!

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Teebown24

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Edited By Teebown24

@jazilla well i would most definately lose that one.

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jsmoke03

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Edited By jsmoke03

you know what they can do is not expect 5 million sales per game made. plan accordingly.

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Trev9421

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Edited By Trev9421

Frankly, I want Kingdom Hearts 3. It's been too long.

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Katra

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Square's last ditch hope imo is remaking FF 1-9 with new generation graphics. Keeping the same gameplay core mechanics I can see that being a good seller for years to come. But that again is there saving grace.

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Chico_Azteca

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Edited By Chico_Azteca

*points to Nomura*

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Sampawende

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Edited By Sampawende

Better late than never....Oh wait, no actually it's too late for me.

Sorry squenix, you should've seen it earlier.

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Sstrawberryjam

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Maybe start by releasing games that people actually want. Fairly simple really.

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Bregzeinkul

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Edited By Bregzeinkul

Japanese ppl tend to make a lot of promises. Let's see what he will actually do.

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soughtthesmet

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Actually both nintendo and square enix are two peas in a pod. Aging dinosaurs of video game lore that are both past their primes.

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Sidian1626

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@soughtthesmet false. nintendo actually is still producing good games and therein lies the difference. nintendo could be accused of milking their franchises and that argument has some validity but squeenix is producing crap.

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Katra

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@soughtthesmet Square just needs to get back to making games like they used to and stop milking bogus games like FF13. God Wada f'ed up during his tenure.

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soughtthesmet

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Z3KR0M Nintendo as a system is dead . . . It's going the way of Sega it will develop and use it's first party titles on new generation of systems on other consoles.. They have lost the console war because they failed to realize the importance of third party contributors and follow the trends in gaming. In the end their first party titles couldn't save their many missteps and they have no one to look to for their failure then to themselves. It's too bad I loved them in their heyday but they thought their brand spoke for itself and didn't need to evolve and that is never a good strategy.

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Sidian1626

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@soughtthesmet nintendo is far from dead. in fact they dont have to win the console war to remain economically viable. they right now have a niche and apparently they are happy with it...id love to see them garner some 3rd party support and crush the other two but it seems thats not the game plan right now. but i hate this "nintendo is done" crap. wii u isnt anywhere NEAR the failure that dreamcast was. not to mention nintendo still leads the way in handheld systems and basically anytime they want to save themselves from going under they just have to say two words....Pokemon MMO. im not a fan but that would sell like crazy

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Z3KR0M

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@soughtthesmet That is very very far from happening, Nintendo has it´s problems but it´s not that big of a deal, and it´s not all Nintendo´s fault, it´s 3rd parties, since GmeCube they have been lazy not trying to port games even though (Having a Console less powerful than it´s competitors) was able to support them. When Wii came out it was even worse, they say 3rd party titles did not have mush sales because there were barely any good ports, just those lazy and crappy ports thinking they necessarily had to have motion controls. now Wii U is still new now and there is not a clear response of the 3rd party to return (having new consoles coming out), I think 3rd parties will stick with current-gen graphics (there are a lot of games coming out this year). Don´t call fail on Wii U for its slow launch, I even think it has been the best launch window in a long time. Give the company that saved videogames a chance, I´m just saying.

And @Katra, I bet even more Adults (18+) buy Nintendo products (Nostalgia, showing our kids, new games), kids these days only know 360, and if there are more kids buying Nintendo products, I think they do not appreciate it as an adult would or know its legacy (well, except for Mario, everybody knows Mario)

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vicsrealms

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@soughtthesmet Well, what didn't help Sega was turning two of your best franchises (Shining Force/Shining in the Darkness, and Phantasy Star) into action RPG's. Of course, SE is going through the same thing with me. The battle systems in FF12 and FF13 were not fun in any way as far as I was concerned. Never really could get past the battle system, so I have no idea how the stories are compared to FF4 and FF6.

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Katra

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@soughtthesmet nintendo will be around as long as handhelds exist and there's a market for children.

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