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Square Enix Preparing for Layoffs in U.S. and Europe Amid Heavy Restructuring

May 13, 2024
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RNTody1h ago

The gaming industry needs to learn just like Hollywood. You cannot sustain “more, more, more” indefinitely if your sales are not increasing in line with your costs. But no, every sequel needs to be three times the size of its predecessor, have twice as many staff, have monetisation systems and 100 hours of padded content and six year development cycles. But are these sequels ever twice as good?

Godzilla Minus One, on a poultry budget of $15 million, blew anything Disney has done out of the water since 2021 in terms of visual effects and created the best monster movie I’ve seen in my life.

Asobo made A Plague Tale Requiem for $25 million and its visuals, writing and quality rival games with ten times its budget.

Am I against big production values? No, God of War, The Last of Us, and so on justify their budgets and sell ridiculously well. But I am against unrealistic excess. If a game sells two million copies, tripling its budget isn’t going to get you six million copies.

Square Enix is facing the reality that Final Fantasy sales are in decline and have been since FF15, yet they seem to be ramping up their development costs exponentially. It’s hard to find facts but word seems to be FF15 had a budget of $50 to $100 million and FF16 had a budget of like $250 million plus. Same goes for FF7 remakes.

Yet other factors affected their market potential, like years of cross-gen releases slowing the PS5 adoption rate.

These lay offs will keep happening until publishers make their costs sustainable and stop trying to make it seem like triple A development is impossible or that we need more monetisation and higher priced games to account for their hubris.

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