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.
That's an everyone problem right now. Budgets so freakishly bloated, there's no possible way they could ever profit without literally being the most popular thing of all time.
The story of Marvel's Midnight Suns. It's an okay game, had several million in sales... But cost ten times what it earned. In pure revenues, any game with those numbers would be a success, but it needed to sell more than there are gamers in the world, in order to turn a profit.