By using this site, you agree to our Privacy Policy and our Terms of Use. Close

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

"and Metacritic score"

LOL. Idiots. Every site now brown noses publishers in order to get access to review their games. A metacritic score is utterly worthless. How about analysing the actual market and potential audience? No wonder they are hemorrhaging money.



Around the Network
outlawauron said:
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.

I don't think that is right.  Tomb Raider would need to be at least 4 million in the chart for that to be true.  It doesn't make sense for it to be lower than Hitman either given the expected range for both games.  Looking at it another way, 3.4 is only 68% of 5, or 57% of 6, which doesn't match up with the percentages in the text.

It seems to me like those numbers in the chart are the estimated number of games sold to retailers by the end of FY13, which ended March 31st.

More likely is that range given already had the 80-90% baked in.  For example, 5.5 x 0.8 = 4.4 and 5.5 x 0.9 = 4.95.  That is pretty close to the 4.5 to 5 range that is given for Hitman.  The chart is basically showing how badly each title missed its prediction.  Otherwise that chart isn't really telling us anything.

Of course, the whole thing is worded pretty badly, so I could be wrong.



Switch Code: SW-7377-9189-3397 -- Nintendo Network ID: theRepublic -- Steam ID: theRepublic

Now Playing
Switch - Super Mario Maker 2 (2019)
Switch - The Legend of Zelda: Link's Awakening (2019)
Switch - Bastion (2011/2018)
3DS - Star Fox 64 3D (2011)
3DS - Phoenix Wright: Ace Attorney (Trilogy) (2005/2014)
Wii U - Darksiders: Warmastered Edition (2010/2017)
Mobile - The Simpson's Tapped Out and Yugioh Duel Links
PC - Deep Rock Galactic (2020)

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.


Well forcast, as in the sales forcasts that they use to set the companies financial forcasts on, not necesserily the game budgets themselves. Which makes their sales forcasts for the three titles even more insane as the actual sales potential that they were targeting for the games in that quarter to be 10-20% higher than their already excessive forcasts. 

At least that's how I read it.



@TheVoxelman on twitter

Check out my hype threads: Cyberpunk, and The Witcher 3!

Tomb Raider had about 100 people working on it (roughly counted in the credits). At an average wage of 70k and a dev time of 3 years, the game should have cost 21 million (Which is roughly what Uncharted 2 cost). 3.5 million copies, even at 30 dollar profit, that's 105 million Square should have made off of Tomb Raider in revenue... 85 million in profit, did I screw up somewhere?



LOL, so Squeenix blames the three best games they've published over the past year for their losses?

Hey guys, you SURE all those losses incurred aren't coming from all the money you spent on that tech demo that you've shown twice already?



On 2/24/13, MB1025 said:
You know I was always wondering why no one ever used the dollar sign for $ony, but then I realized they have no money so it would be pointless.

Around the Network
darkknightkryta said:
Tomb Raider had about 100 people working on it (roughly counted in the credits). At an average wage of 70k and a dev time of 3 years, the game should have cost 21 million (Which is roughly what Uncharted 2 cost). 3.5 million copies, even at 30 dollar profit, that's 105 million Square should have made off of Tomb Raider in revenue... 85 million in profit, did I screw up somewhere?


licensing (middleware and tools, music, console development), equipment (PCs, furnature etc), building up keep (lease, utilities etc), outsourcing, Benefits (insurance, health plan etc), the game was in development for over 4 years (tho the first 2 were likely preproduction with a small team of 10-50), and the big one marketing. Total buget is probably $80m+.



@TheVoxelman on twitter

Check out my hype threads: Cyberpunk, and The Witcher 3!

So like, I recently bought FF13, my first FF game since FFX2....And man, the combat system was shitty, and the story wasn't as interesting as FFX's, which made's FFX2 at least interesting. The characters in FF13 were meh, and once again, the combat system was terrible, it felt as if the game was playing itself and I would only need to stop to use a potion every now and then.



_crazy_man_ said:
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

Except, there is so much competition, that no only are you driven to have to pay for server demands of MMOs, you have to have people play free.  Even World of Warcraft is doing this.  Star Wars is doing this.  If they are all switching to play for free and micropayment, then getting several hundred thousands to pay regularly is really pushing it also, and not a lock.



darkknightkryta said:
Tomb Raider had about 100 people working on it (roughly counted in the credits). At an average wage of 70k and a dev time of 3 years, the game should have cost 21 million (Which is roughly what Uncharted 2 cost). 3.5 million copies, even at 30 dollar profit, that's 105 million Square should have made off of Tomb Raider in revenue... 85 million in profit, did I screw up somewhere?


when calculating wages there is alot more too it. Payroll tax, insurance, and regulation the city/state/country may have. Its hard to just estimate a cost like that. you need more facts. Where does the 70k avg salary come from?



UnknownFact said:
"Square Enix say that they recently launched a new division in the U.S. to develop casual games for phones, but were forced to close it down after things didn’t go well. The company expects a 1 billion yen loss as a result of its closure."

Noobs, they should have done that in India, or Uruguay.

How about following the Stellar Stone (Big Rigs Over the Road Racing) business model of bloated American management and cheap Russian coders?