I never really played 12, but never had any interest in it, and I feel like around that point is where they dropped the ball.
Also, I think maybe the burden of maintaining an online Final Fantasy since like 2003 (11, then 14, AND then REMAKING 14...) has probably has an impact on development of the other main series games.
I also really think SE is having a really difficult time determining what direction to go in with the series in modern times. They want the games to appeal to the Japanese as well as the West, and other emerging markets. But they aren't sure what kind of story or chatacters the game should have, or what gameplay it needs to have. So they wind up with something that tries to take cues from other Western games but feels half-baked, and has a really awkward story and characters.
I still really don't think the merger with Enix is to blame, I would say that Enix's projects have mostly turned out better than Square's since the late PS2 era.
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