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I think it's something of a faulty perception that Square Enix has fallen after the PS2 era. Mostly it's because Final Fantasy as a series hasn't been able to produce the kind of single player games fans are expecting. Because it is S-E's flagship series, it reflects on the perception of the entire company, even though they've still been putting out great games outside of the series as well. After all, in just the last few years we've gotten games like Nier: Automata, Bravely Default and its sequel, and many others.