Square Enix to report record 22.1 billion yen loss
(twitter.com)
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That's basically the cost of a AAA game these days.
So how much of that loss came from Luminous and those non-Japanese studios it got rid of?
On top of that, Squeenix has always been particularly bad with budgeting. A game like Mankind Divided can make millions but it didn't make quite the number of millions they expected so it's a failure.
Which is still their own fault for setting it up with a disastrous marketing campaign that got them multiple independent controversies all on its own, as well as tacking on a multiplayer mode no one cared about and loading it with MTX to try and recoup losses.
Both of those cut into the profit margin before it even released and set them up for failure unless it became a groundbreaking hit. Which was impossible because it ends on a fucking cliffhanger.
They learned the lesson of Multiplayer in the original Deus Ex. Multiplayer was a metric fuckton of work. No one wanted it.
And here we are again. Remember that the original Ion Storm went bust due to project bloat.
This one wasn't competitive at least, it was just "everybody does these pre-made short levels, beat their time/score." So it couldn't have been that much work considering most of it wasn't even textured because it was "VR" in universe.
It was just completely tacked on so that way they could try to sell some kind of MTX after the "Augment Your Preorder" thing killed their plans for the single player ones.