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Forums - Gaming Discussion - Square Enix definitely is setting itself up for a buyout - Part 2

“driven by concerns that the titles cannibalized sales of the rest of the group and so it could improve capital efficiency” - Their explanation for why the sold Edios.

da may no cents.

May 2013 - Square Enix said despite a "high critical acclaim" for each title, sales still came up short. In particular, the publisher called its North American sales force "ineffective," noting that title sales in this region made up just a third of the number of units sold in Europe

2019 - "Meanwhile, while we released “JUST CAUSE 4,” we sold fewer units on launch than we had anticipated and were therefore unable to offset charges such as the amortization of development costs. " - Square Enix, during their investor call today.

5/2022 Square Enix claims that the underperformance of Marvel’s Avengers and Guardians of the Galaxy lost them $200 million. The company famously reports almost all of its western games as failures.

They have never had anything positive to say about their western studios sales... so how are they all of a sudden strong enough to be cannibalizing the rest of the group?

They are selling their western studios to be a Japanese focused development studio for their buyer *coughsonysough*



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There feels like a lot of smoke. Might not mean anything, but it does feel like something is going to happen. 


Although, apparently Square talked about selling stakes in their development studios. 

No doubt in my mind that Sony wants Final Fantasy. I don't think they'll let anyone else pick that up.



the-pi-guy said:

There feels like a lot of smoke. Might not mean anything, but it does feel like something is going to happen. 


Although, apparently Square talked about selling stakes in their development studios. 

No doubt in my mind that Sony wants Final Fantasy. I don't think they'll let anyone else pick that up.

100% but does Sony even need to buy SE for that reason? The IP practically is bought and paid for at this point.

Unless that could be a reason why SE keeps trimming down and seemingly appears to want to trim down even more. Cheaper to purchase.



This doesn't really make sense. I sense some translation issue or missed information. David Gibson is not a reliable source so we might need to check the actual source which is currently no where to be found



gtotheunit91 said:

100% but does Sony even need to buy SE for that reason? The IP practically is bought and paid for at this point.

I wouldn't really say that's the case.

Sony is still paying them money to keep FFVIIR, FFXVI, and presumably future releases exclusive. They're also presumably paying for Forspoken, and I'm sure they're paying for other future games.

FFVIIR was originally supposed to just be a timed exclusive, so it seems Sony upped the deal to keep it exclusive. Not to mention, they're funding the FFVII sequels.

At some point, it might make more sense to bring it under their own wing so that they can keep the IP, and profit more directly from it.

Additionally, this isn't really the time to take anything for granted. Although I don't think MS or especially Tencent would have an easy time acquiring a big Japanese publisher, there's always a possibility.

gtotheunit91 said:

Unless that could be a reason why SE keeps trimming down and seemingly appears to want to trim down even more. Cheaper to purchase.

It seems likely. That's been the speculation for a while.



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Shatts said:

This doesn't really make sense. I sense some translation issue or missed information. David Gibson is not a reliable source so we might need to check the actual source which is currently no where to be found

Aye. The real answer is probably "Crystal Dynamics was not making enough money, and we thought we could spend our money better elsewhere."



Not just cheaper but easier. I think SE is slimming down to avoid the problems MS is going through when purchasing a publisher with to much shit attached to it. Multiple agencies are involved with the Activision buyout slowing it all down.

Sony bought and then closed the Bungie deal relatively quickly. They want it to be the same for SE



I hope SE doesn’t sell, but if it happens, I would like Nintendo to make a play for Dragon Quest, though.



SanAndreasX said:

I hope SE doesn’t sell, but if it happens, I would like Nintendo to make a play for Dragon Quest, though.

Definitely not would happen. What is the point of buying Square Enix if Final Fantasy, Kingdom Hearts, and Dragon Quest don't come with it? 



gtotheunit91 said:

100% but does Sony even need to buy SE for that reason? The IP practically is bought and paid for at this point.

Unless that could be a reason why SE keeps trimming down and seemingly appears to want to trim down even more. Cheaper to purchase.

In this day and age? Absolutely.

Microsoft opened the floodgates with their publisher acquisitions. Even if they stop at Activision Blizzard, Amazon, Tencent, Disney, won't.