Squeenix wakes up and smells their spiralling development costs.

Key takeaways:

  • ¥13.7 billion loss this last fiscal year. You might remember their last estimate was a ¥10 billion loss.
  • They’re going to spend less on development per game than ever before. This means more on mobile and more social games, while they get more control over their HD console development costs.  This is partly expected at the end of a console’s lifetime, but this muddies the waters considerably for titles people still expected to see this gen (Versus).
  • They’re going to focus on regional development (Read: If a game isn’t expected to sell well outside of Japan forget about it).  In other worse, lol Type 0, and more focus-group tested titles from Eidos IPs.
  • Layoffs and a clamp down on years in development is a given.
  • Lots and lots of restructuring up and down the development pipeline. See above about layoffs.
  • Spend more on marketing.  Don’t forget they threw their sales and marketing under the bus for Hitman and Tomb Raider not hitting their projections.  They are promising more frequent, more in-detail updates released to consumers rather than force them to wait years between vague non-news sentences burped out by Nomura. Sound familiar? They promised this in 2010.

tl;dr tweets

Note that the target revenue next to the FFXIV tweet is for company wide operating income, not just the revenue from one title (because that would be stupid).

The slides

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