[HN Gopher] Square Enix to record extraordinary loss of 22.1B yen
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Square Enix to record extraordinary loss of 22.1B yen
Author : haunter
Score : 36 points
Date : 2024-04-30 20:02 UTC (2 hours ago)
(HTM) web link (www.gematsu.com)
(TXT) w3m dump (www.gematsu.com)
| breckenedge wrote:
| That's only $139M USD, so not terrible when it comes to the costs
| of making a AAA game these days.
| nozzlegear wrote:
| Genuine question, I don't play very many video games anymore:
| does Square Enix make AAA games? And what does a AAA game cost
| these days?
| nitwit005 wrote:
| These are questions you can paste into your browser search
| bar and get perfectly good answers.
| cfeduke wrote:
| > browser search bar and get perfectly good answers
|
| That depends. If your search engine is Google, you'd get
| things like "The best 17 AAA games by budget to buy in
| 2024" or "22 triple A games for a tight budget in 2024."
| ClassyJacket wrote:
| ...Have you used Google recently?
| pixl97 wrote:
| Baldur's Gate 3 had a budget of $100 million.
| solardev wrote:
| Sure. Square Enix is a big publisher and sometimes developer,
| responsible (or formerly responsible) for the Final Fantasy
| series, Tomb Raider, Hitman, Thief, Deus Ex, etc. They sold
| some of their development studios to Embracer Group, I
| believe, but still publish titles. You can see their
| franchises here: https://en.wikipedia.org/wiki/List_of_Square
| _Enix_video_game...
|
| AAA games can cost around $100 mil or more, altogether.
| Here's a list: https://en.wikipedia.org/wiki/List_of_most_exp
| ensive_video_g...
| rowanG077 wrote:
| This is money they wasted due to "content abandonment". As a
| whole SE is still shoveling in money. This is just a clickbait
| title and an article that seems to want to cast Square Enix as
| beeing in a bad financial position.
| mushufasa wrote:
| sounds like they cancelled a major game that had been in
| development for a while.
|
| The fact that they're issuing a mid-year guidance just for this
| suggests it isn't your standard tax losses
| lloydatkinson wrote:
| It was probably Final Fantasy 13 III Mark 12 Edition 21 Version
| 2.18.
|
| In which case nothing of value was lost.
| omoikane wrote:
| According to speculations from some random thread[1], it might
| be Dragon Quest Monsters 3 that's at risk, especially since
| Toriyama Akira was involved with Dragon Quest and he died
| earlier this year.
|
| [1] https://togetter.com/li/2358590
| peanuty1 wrote:
| Maybe they will reconsider their decision not to sell the
| square.com domain to Jack Dorsey's Square, Inc.
| ZeWaka wrote:
| But it is sold? Or at the very least, redirects to Square.
| Aqua_Geek wrote:
| Block (fka Square) pays them for the redirect, IIRC.
| echelon wrote:
| Block pays a lot of money to rent it.
|
| I remember the Jira tickets for occasional square.com DNS
| updates and rental payments.
| downrightmike wrote:
| Naming FF7:Rebirth was probably not a good move. Just sounds like
| ew
| jimbob45 wrote:
| You're joking but I follow the games somewhat more than
| casually and even I'm a little confused on which game is which
| and what is actually in each game.
| ClassyJacket wrote:
| I do think the obsession with naming everything in a series
| words beginning with 're' is a little unnecessary.
| ambichook wrote:
| i vaguely follow? and i think final fantasy <number> denotes
| a new series, with then any words after <number> being
| different entries in said series?
| JojoFatsani wrote:
| It's just you.
| hiddencost wrote:
| On revenue of 3.65 trillion in 2022, or 0.6% of annual revenue
| gffrd wrote:
| Their 2022 revenue was 32B yen, or 202M USD. The financial
| figures in Wikipedia for Square Enix are in Yen.
| bilekas wrote:
| I'm genuinely shocked by this. The gaming industry usually culls
| companies based on acquisitions, then become insolvent by the
| investor.. maybe I missed a beat I don't see this here. In fact
| they made 2 Amazing chapters of a series everyone wanted and a
| promised 3rd to finalise.
|
| I would like to believe this is invested money's and not "losses
| of investment" but I'm no accountant.
| iEchoic wrote:
| FF7 Remake and Rebirth are both incredible, but Rebirth's sales
| are significantly lower. I'm hoping this doesn't make them
| reduce investment for the third installment.
| ddtaylor wrote:
| It's also a very expensive developnent.
| iEchoic wrote:
| You can definitely tell while you're playing it. It's
| probably the best-looking game I've ever seen and it has a
| pretty unbelievable amount of content.
| bilekas wrote:
| It absolutely should be the most expensive, but they did
| choose to use unreal engine, I'm not complaining about but
| it's certainly cheaper.
| bilekas wrote:
| Let me reply again, game development in my eyes is insanity
| personified.
|
| If it's engine or interop, it's wild. It always has been..
| We used to have memory and space limits, now we have no
| limits but time. I adore and praise every game developer.
| It's a tough field.
| bilekas wrote:
| I don't have the sales numbers, but if we look at Capcom with
| resident evil remakes, they made some cash.
|
| FF remakes are in unreal engine, so some costs there but I
| would imagine far less than a new engine build? With faster
| turnover times..
| fhuebgj wrote:
| My guess is dinosaurs holding onto the "good ole days" of the
| "console wars".
|
| Remake and Rebirth were both seriously, and needlessly,
| kneecapped by their own parent company.
|
| The exclusivity deals are to blame.
|
| One year exclusive on console(and in terms of Rebirth, a
| console that few people own because of short supply at launch
| and lack of games throughout its now apparently finished
| tenure), then one year exclusive on a single pc game
| store(the one I refuse to use), then, finally, wide release,
| but by then everyone excited about the game has heard about
| their friends playing it or a watched streamer and so once
| they are finally ALLOWED to play the game the purchase is
| less of a intriguing prospect.
|
| I think the original moved a lot of CONSOLES, but to think
| that sort of purchasing power STILL exists is a fever dream
| that is dangerous to the parent company's own goals. (pun
| intended ;)
| politelemon wrote:
| I'm not very familiar with their media, which series are you
| referring to?
| solardev wrote:
| Not the OP, but probably
| https://en.wikipedia.org/wiki/Final_Fantasy_VII_Remake
|
| FF7 was huge in the late 90s, and they've recently remade
| that old game into a 3-part action RPG trilogy with enhanced
| graphics and different gameplay.
| ShamelessC wrote:
| And bizarrely different plot points.
| quchen wrote:
| For example? I'm a fan since release 1997, but haven't
| touched the remakes.
| bilekas wrote:
| For context also that's 130 million euro. Not that bad actually.
| AtlasBarfed wrote:
| Yeah, consider the pattern recently of the major media
| corporations just not releasing movies so they could declare
| large tax losses
|
| A major movie being abandoned like that is probably on a scale
| of 100 million
| resist_futility wrote:
| So half of last years earnings?
|
| https://companiesmarketcap.com/square-enix/earnings/
| marricks wrote:
| Yeah, but line must go up or there will be blood.
|
| I feel like the business world feels the need to overhype any
| loses to justify whatever measure are about to come.
| arkis22 wrote:
| It might be helpful to understand that "extraordinary" is an
| accounting distinction:
|
| >An extraordinary loss is a loss resulting from a business
| transaction that is highly unusual, should occur only rarely, and
| which does not result from operating activities. These losses are
| reported separately on the income statement from operating
| earnings, in order to keep from confusing readers about the state
| of a firm's earnings.
|
| https://www.accountingtools.com/articles/extraordinary-loss
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