Japanese Video Game Industry

SQUARE ENIX Huge Deflicit. Reasons and CEO Yoichi Wada's Funny Quote

SQUARE ENIX Huge Deflicit. Reasons and CEO Yoichi Wada's Funny Quote
We've got submission.

"Seems you avoid talking this, how about SQUARE ENIX's financial result? Turn from surplus to deficit, shouldn't only caused by bad sales of games... OMG they thought FF14 could create the same profit as FF11...?" (submission)
You should have talked about this eagerly, why you haven't?
This deficit has another meaning. It's huge, but we can't just consider the number.
Meaning?
3 main reasons for the deficit. Firstly, the Great East Japan Earthquake. TAITO's amusement facility suffer physical damage.
600 million Yen loss huh.
Secondly, the loss caused by cancelling some games. Don't know are those games already announced or not, but Xbox 360's GUN LOCO is included. FINAL FANTASY XIV's correction is a loss too.
This is 4.5 billion Yen loss.
Lastly, the loss of goodwill. They bought a big oversea company EIDOS in 2009, but its future value dropped, so the difference between the value and the cost to buy it becomes loss.
That's 8.8 billion. Totally 16 billion loss.
Consider the above reasons, we should not say they had came to an end .
So how should we think about this?
We need to consider separately. The effect of earthquake is not their fault.
How about the other 2 reasons?
Of course a big failure, you fool.
......
I just doubt their mental status when I heard about EIDOS.
The Nikkei stated as follow.

"The trend of gaming shift from package to network, so English game companyまたEIDOS's goodwill need to become loss (8.8 billion)" (The Nikkei)
They bought it in 2009, and that time already know the crisis of package gaming, and not they explain with this.
How about games cancelled?
Well, that would happen in all company. FF14 is a special case though. But showing the loss in this fiscal year has another intention.
Intention?
SQUARE ENIX CEO Yoichi Wada may think about a V-shape recover. Show all the loss this year, and release big titles in the coming year to create big profit, to create the impression that he alone create such huge recovery.
Japan motor company Nissan's president Ghosn had done the same trick huh.
So maybe Wada would quit in 2 to 3 years after the recovery. It would be a nightmare for him to stay as chairman though.
Oh...
The Nikkei website has an Q&A too.

"We launched oversea strategy to improve profit but our basis of game development had became too weak, need 1 or 2 year to recover. Developers' lack of communication. The leader creator hadn't pass my opinion to their staff. The conservative work division among technician made them do only their own stuff."

"Entertainment industry including gaming has shifted to network. We would shift to Smartphone and SNS market. We can't wait for FF. We would create another team to do that. Don't know those package game developer could do that, so we would hire staff from outside. But no Ｍ＆Ａ. In March 2011 our network related profit is 1.5 billion Yen, we will make it a double. There are too much payment system, so we are going to make our own platform."
The first quote is just transferring the responsibility to staff. Really an ex-bureaucrat. He himself cut many staff and damage the will of development team. He complained about communication, but it is the responsibility for CEO to explain his view to the leader so as to be understand by all staff. He thought he could just speak a word and the whole world would do what is in his mind?
How about the second quote?
They do this because there is example of success. "DRAGON QUEST" series are by outside, but successful. So they want to do it again. But DQ's success is due to Yuji Horii and LEVEL-5.
Recent series are by LEVEL-5, really matters?
LEVEL-5 had done so well, which maintain DQ till now. If DQ8's quality was the level of DQ7, the brand had crushed. So need to thank LEVEL-5. But not all developers outside are that good.
So they are finding staff outside huh?
They should grow their own staff instead. Package game's won't become Apps directly, but just a little change in thinking is enough. Just want to mass produce cheap Apps, but that damage brand value. I would talk about Apps development next time, but their sense is simplistic.
And the payment system?
Once upon a time, there was something called PLAYONLINE.
......
If they inherit that idea, won't allow the appear of mixi and GREE. It was WADA who destroy this possibility. Well, they had a financial crisis that time, but better kept the core business.
You said you don't want to talk about them, but you really speak a lot huh.
It is stressful to talk about SQUARE ENIX. If we are discussing particular game,にthat would be better though. Hope SQUARE ENIX staff can fight.

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Marvelous Entertainment and AQ Interactive Combine to Form Marvelous AQL. Why?

Marvelous Entertainment and AQ Interactive Combine to Form Marvelous AQL. Why?
Marvelous Entertainment and AQ Interactive will combine.
Actually one more, mobile content company "Liveware" will be combined with実際them to form Marvelous AQL on October 1.
Too hick, just stupid to keep the old names.
Well, hard to understand.
Marvelous Entertainment is famous for Harvest Moon series. Many games of original content, and sell anime and music CD too. They create theater drama base on anime.
The Prince of Tennis musical is famous.
AQ Interactive is familiar of game development with other companies.
How do you feel about this news?
Well, the biggeset stockholder of Liveware is the same of AQ Interactive, Hayao Nakayama, who was the president of SEGA. He led the early SEGA era.
Huh.
On the other hand, president of Marvelous Entertainment is Yoshiharu Nakayama.
Another Nakayama.
Father and son.
Really!?
So this is a unification of family business. Both are weak companies in gaming industry and no one want to combine with them, so they just combine with each other.
Oh...
Weak plus weak won't become strong. It is not quite possible for them to create some great new content, so they could only eat up Harvest Moon and other asset.

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