http://www.gamesindustry.biz/articles/2013-06-21-square-enix-names-crystal-dynamics-boss-as-new-head-of-studios

At Square Enix Montreal, assistant director Patrick Naud has been handed leadership of the studio. When it was founded in November 2011, Square Enix Montreal was intended to increase the company's capacity for AAA projects, though plan now seems to be on hiatus. Instead, the studio will focus on creating smartphone and tablet games - first with the Hitman license, and with other brands in due course.

This move arrives in the wake of a huge staff reduction at IO Interactive, the studio responsible for creating the Hitman franchise. Square Enix has confirmed that IO is working on another AAA Hitman game.

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Well, pretty much expected since Hitman: Absolution failed to make them any money.

*Waits for Final Fantasy XV-2: The Musical, only on smartphones*

For once, I agree with Cliff. It seems that SE is going to go full or mostly mobile and will probably set the example for other publishers to do the same. However, I think that these publishers are going to be in for a rude awakening once they reallocate most of their resources to mobile games. The smartphone bubble can only get so big before it pops.

Our lord has spoken!!! 

Needs buttons to be any good. But if they can release games like this on phones, why can't they do the same on Vita and 3DS. They aren't that expensive to develop for are they?

its no bubble. why would it be? this isn't social gaming. a smart phone is just a pc in your hands. With easy distribution, less piracy, more potential customers, and more control over price, devs will be going to smart phones and tablets. if anything, its the consoles that are going to be loosing customers and money, as why pay so much to get into gaming when you have a cell phone that does it already.

Everything in 2012 failed to make them any money because they spend $120 million in advertising costs.  $120 million that includes but is not "paying for review scores."

Here are only a few things that is noticeable you can see where Square Enix has lost money and they only have themselves to blame.  Taking a full generation to release one game, having sales projections of five million for two IPs which most of the games in the series haven't even sold half that, sales projection of five million for a brand new unknown IP, overpricing digital games, etc.

You guys know that Final Fantasy Dimensions is $28.99 if you bundle all episodes together, and I've heard it's pretty crappy.  They'll probably get some sales for being Final Fantasy but most will avoid it.  Final Fantasy Tactics, Final Fantasy 3, and Chaos Rings series are all $18 each on the iOS.  They're pricing themselves right out of the market.

By the looks of it, Square Enix has poor management and that's the reason why they're failing.  They expect gamers to just buy anything with their logo on it because they're Square.  Regardless of quality and regardless of price.  At one time, yes, we did buy anything that had Square on it because that was a time when they made quality content.  As content quality has significantly dropped, why do they continue expect us to buy their titles on day one?

They need to blame themselves, not the consumer.  

When your games are 20 times the cost of anything else on smart phones, you're limiting your potential customers.  The only reason they make any money on them is because the games they develop are pretty crappy extremely low budget titles at a very high price.  Besides.  With all the garbage Square Enix is releasing, fans can do without.  .