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Forums - Gaming Discussion - Square Enix detail where their losses are coming from

outlawauron on 08 April 2013
benao87 said:
outlawauron said:
Some more bad reporting.

None of these things happened.

"For reference, Sleeping Dogs has moved 1.75 million copies, Hitman Absolution 3.6 million and Tomb Raider 3.4 million."

That was their official expectations for the titles based off the metric they provided in the report. All it takes is some reading to look at their official reports and see that those are what those numbers are for. They shipped far less than that.

No, this time they clarify the thing, check this: http://www.hd.square-enix.com/eng/news/pdf/explanatory_20130326en.pdf

They do not say what's the exact prediction, but the part where he says "Let’s talk about Sleeping Dogs: we were looking at selling roughly 2~2.5 million units in the EUR/NA market based on its game content, genre and Metacritic scores. In the same way, game quality and Metacritic scores led us to believe that Hitman had potential to sell 4.5~5 million units and 5~6 million units for Tomb Raider in EUR/NA and Japanese markets combined." it's taken literally form that report.

So if he states that they are not telling the exact prediction, I'm going that those other numbers are the actual sales rather than the predictions.

So, what Faxandu says pretty much nails it.

On page 5 of 12, zoom in on the picture/graph. It clearly labels the expect sales of the games for FY '13. That's where the numbers 1.75, 3.6, and 3.4 came from. They got those numbers using the formula they provided.



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VGKing on 08 April 2013

So they expected the Hitman and Tomb Raider reboots to have mega sales? Reboots are always risky, why would they set expectations so high?



richardhutnik on 08 April 2013
Lyrikalstylez said:
WTF, Those games have sold well in my opinion!

Another case of a company with un reachable profits expectations

I think they are forcasting on 4 million MINIMUM to be able to make a profit.  And yes, it looks well enough, but apparently not enough to be profitable.

Someone did say in an article recently that the market can only support about 10 AAA titles a year.  So this would be keeping in line with that.  And yes, it does sound mucked up, but welcome to the new videogame economy.



Train wreck on 08 April 2013
spurgeonryan said:
So happy they did not mention DQX. I actually think they are kind of happy with the sales and money they are making from online content.

They did mention Dragon Quest X, its on page 6 .

The development of the Wii U version added to the losses for the quarter since the acutal game release did not happen until after the quarter ended.



bonkers555 on 08 April 2013

Jesus, after 4 years of developent I wonder what they expect FFXIII Versus to sale alone on the PS3. Lol



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cmeese47 on 08 April 2013

Question were those numbers for units sold this year or total sales expectations. If those are projections for this year it is no wonder the company is in such trouble. I like Tomb Raider and think it is a great game but I do not see the game selling 5-6 million copies this year and it might struggle to reach that number at all.

Want to blame something don't blame your best games blame the crap like Pony Friends 2, Soul Eater, Major minors majestic march, Front Mission games on DS, and the major screw up with FFIV.



NintendoPie on 08 April 2013
Torillian said:
using 80-90% of the expected sales to budget the game seems way too risky in my mind, I wonder how this matches up with other companies' models.

It seems Square Enix thought they were still in their hay-day. Hopefully they have waken up from that dream.



LiquorandGunFun on 08 April 2013

its simple, square has no vision. they dont build on any past successes, easy money in between big games like tomb raider.



 

KingKazuma34 on 08 April 2013

psst...Hey SE... Type-0 on vita would sell pretty good in NA...



 

_crazy_man_ on 08 April 2013
spurgeonryan said:
So happy they did not mention DQX. I actually think they are kind of happy with the sales and money they are making from online content.

Subscription based MMO's are quite profitable, even if they only get a couple 100,000 subs



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