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Final Fantasy XV total shipments top six million

Forums - Sales Discussion - Final Fantasy XV total shipments top six million

specialk said:
Neodegenerate said:

All but a handful of games (GTA, Pokemon, CoD?) need those discounts to hit that number.  The difference here compared to standard AAA game sitautions is that Square might hit their 10 million number where other AAA games definitely won't.

Point taken. But not every AAA game has the developer come out and say, "We need to sell 10M to break even." either.

If VGChartz numbers are to be believed, Final Fantasy 13 actually had a stronger first week if you account for the fact that the game didn't have a simultanious world-wide release like 15 did. 

13 sold about 7.5M (again, if VGChartz numbers are right). 

The rise of digital sales helps a bit, but I have a bad feeling about this.

I agree, and ultimately this is all on Square for taking 10 years to put the damn thing out.  Fact that they are only about 4 million away from their target without putting out their inevitable packaged edition with all the DLC later, and a potential PC port, or a potential Switch port, makes me more optimistic than pessimistic that they will hit that target.



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Square Enix never said they needed 10 million to break even lol



Boutros said:
Square Enix never said they needed 10 million to break even lol

Yes they did. 10 years of hype needs 10mil sales to break even. Do you math bro?  

 

Jokes aside people get those statements mixed up all the time. I remember Hyrule Warriors developer said the same thing (1mil) and everyone went crazy with that. (At least it did hit that figure thanks to US)



specialk said:
Neodegenerate said:

All but a handful of games (GTA, Pokemon, CoD?) need those discounts to hit that number.  The difference here compared to standard AAA game sitautions is that Square might hit their 10 million number where other AAA games definitely won't.

Point taken. But not every AAA game has the developer come out and say, "We need to sell 10M to break even." either.

If VGChartz numbers are to be believed, Final Fantasy 13 actually had a stronger first week if you account for the fact that the game didn't have a simultanious world-wide release like 15 did. 

13 sold about 7.5M (again, if VGChartz numbers are right). 

The rise of digital sales helps a bit, but I have a bad feeling about this.

to be fair, they didn't say they needed to sell 10 million to be profitable and I doubt they also meant that those 10 million would be at full price

http://www.gamespot.com/articles/final-fantasy-15-director-clarifies-10-million-sal/1100-6436227/



specialk said:

Point taken. But not every AAA game has the developer come out and say, "We need to sell 10M to break even." either.

Not this shit again...

Square didn't say that.

http://playeressence.com/square-enix-clarifies-final-fantasy-xv-doesnt-need-sell-10-million-recoup-development-cost/



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Firefoxie said:
Pinkie_pie said:

who said it sold 6 mil? its selling well thats why it shipped another 1 mil since launched

That's why they haven't said how much they ACTUALLY sold??? It's been over a month now. I'm not interested in how many units shipped and in my opinion if it sold that well SE would be bragging about copies sold not units shipped. 

Uhm. All companies brag about their shipments. It's pretty normal. That's is their sales as a company. They don't get any profit from the sales of the retailers obviously they will brag about their shipments. That's why when their is a finanacial report you always see Shipments. Also, as Boutros said the data for the copies sold to consumer is not availabe yet worldwide. SE don't have the complete data yet. You cannot provide numbers when it's not complete do you? and the fact that you cannot get an accurate data for the copies sold to the consumer because of the asian market and the middle east. 

If they added more shipments then it means retailers asked for more copies of the game. It means there is a demand for the game. 1 Million in just 1 and half month, yes people it's only 1 month and half. FFXV was released on Nov. 29. Having another shipment for another milion means it has a demand. I don't get why people discredit shipments. Shipments are sold regardless and profit for the Game developers which is most important. 



Thanks for the links to the clarification. Never saw those.

Anyway. Squarenix's balance sheet and P&L look healthy enough, though I'm curious to what extent their digital entertainment division is bouyed by mobile games and Western developers. 

I think FFXV could be something of a last hurrah for Squarenix. Ten years of devlopment. Difficulty with in-house engine. What I preceive as weak sales relative to expectations (I know at this point that most disagree with me here ^_^). 

Given the difficulty that they've had simply getting FFXV and KHIII to market, I don't think it's surprising the direction they've been going in recently. Episodic stuff like Hitman and Life is Strange, the FFVII remake being at least somewhat episodic in nature and being built in Unreal, etc. 

I think the days of big budget, completely in house JRPGs might be coming to an end. 



Bring on XVI, with a clear vision this time.



I predict that the Wii U will sell a total of 18 million units in its lifetime. 

The NX will be a 900p machine

NoCtiS_NoX said:

Uhm. All companies brag about their shipments. It's pretty normal. That's is their sales as a company. They don't get any profit from the sales of the retailers obviously they will brag about their shipments. That's why when their is a finanacial report you always see Shipments. Also, as Boutros said the data for the copies sold to consumer is not availabe yet worldwide. SE don't have the complete data yet. You cannot provide numbers when it's not complete do you? and the fact that you cannot get an accurate data for the copies sold to the consumer because of the asian market and the middle east. 

If they added more shipments then it means retailers asked for more copies of the game. It means there is a demand for the game. 1 Million in just 1 and half month, yes people it's only 1 month and half. FFXV was released on Nov. 29. Having another shipment for another milion means it has a demand. I don't get why people discredit shipments. Shipments are sold regardless and profit for the Game developers which is most important. 

I'm no retail expert, but can't retailers return unsold merchandise? Not saying that's what is happening here, but I thought in most cases, retailers could send stuff back to manufacturers. 



specialk said:

I'm no retail expert, but can't retailers return unsold merchandise? Not saying that's what is happening here, but I thought in most cases, retailers could send stuff back to manufacturers. 

I'm no expert either, but some while ago I was interested in this topic and searching for the answers thru internet. And the answer is No, but not a direct No. Big retailers could make a deal with the publisher after some time to get discounted price so they could sell the game at lower price. But for small retailers, they got no bargaining power at all, what's coming to their store, if not sold it will end up forever there. 

https://www.quora.com/If-a-video-game-drops-significantly-in-price-at-a-retailer-within-weeks-after-its-release-does-the-publisher-developer-ultimately-earn-just-as-much-from-the-sale

There are even articles & discussion saying that big retailers like Gamestop or Target even dumping old stock (which means they aren't sending stock back to the publisher)

http://www.ign.com/articles/2014/03/05/inside-the-secret-world-of-gamestop-dumpster-diving

https://www.reddit.com/r/gamecollecting/comments/189y9q/question_where_do_unsold_games_go/

So, basically SE got almost fixed profit margins - up to 80+% of the retail price (note that this is gross profit). So if the game was sold $60 in retailers, then the retailers will pay SE $48+ for each unit sold. After some time (or to boost sales during holidays), retailers could deal a discounted retail price with SE, say for $40 - in this case, for every unit sold during that discount period, SE will get $32. So retailers only pay SE for every units sold (consignment). But retailers & SE both know that it will benefit both not to go through the hassle of sending unsold stock back, they both will find ways to clear up every units shipped, like discounting the price.

And, if the argument about product based on intellectual property is true, then I can confirm this since I already wrote some books and the publisher indeed got healthy margins from retailer price, for some big publishers they can even manage to get 90+% of the retail price. Therefore, 10 million copies for FFXV to break even is just absurd. It was only Tabata team personal target. Let's say that the average profit margin is $40, then it means FFXV need $400m to break even - no game has production cost pass $150m mark afaik (that already includes marketing costs). And SE already had two amazing financial years prior to 2016 (even when they were burdened by the production costs of FFXV & FFVII Remake). SE management would already smiling ear to ear if FFXV sell through the 5m initial shipment (since it would already gross them more than $200m in revenue).