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43 points haunter | 57 comments | | HN request time: 1.704s | source | bottom
1. breckenedge ◴[] No.40215831[source]
That’s only $139M USD, so not terrible when it comes to the costs of making a AAA game these days.
replies(1): >>40217040 #
2. rowanG077 ◴[] No.40216300[source]
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.
replies(1): >>40216478 #
3. mushufasa ◴[] No.40216302[source]
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

replies(2): >>40216627 #>>40216726 #
4. peanuty1 ◴[] No.40216325[source]
Maybe they will reconsider their decision not to sell the square.com domain to Jack Dorsey's Square, Inc.
replies(2): >>40216419 #>>40217266 #
5. ZeWaka ◴[] No.40216419[source]
But it is sold? Or at the very least, redirects to Square.
replies(1): >>40217097 #
6. downrightmike ◴[] No.40216477[source]
Naming FF7:Rebirth was probably not a good move. Just sounds like ew
replies(2): >>40216552 #>>40217476 #
7. ◴[] No.40216478[source]
8. hiddencost ◴[] No.40216551[source]
On revenue of 3.65 trillion in 2022, or 0.6% of annual revenue
replies(1): >>40217014 #
9. jimbob45 ◴[] No.40216552[source]
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.
replies(2): >>40217303 #>>40217431 #
10. bilekas ◴[] No.40216558[source]
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.

replies(3): >>40216922 #>>40216964 #>>40217173 #
11. bilekas ◴[] No.40216596[source]
For context also that's 130 million euro. Not that bad actually.
replies(1): >>40217007 #
12. lloydatkinson ◴[] No.40216627[source]
It was probably Final Fantasy 13 III Mark 12 Edition 21 Version 2.18.

In which case nothing of value was lost.

13. omoikane ◴[] No.40216726[source]
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

14. resist_futility ◴[] No.40216751[source]
So half of last years earnings?

https://companiesmarketcap.com/square-enix/earnings/

replies(1): >>40217051 #
15. iEchoic ◴[] No.40216922[source]
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.
replies(3): >>40217235 #>>40217432 #>>40217473 #
16. politelemon ◴[] No.40216964[source]
I'm not very familiar with their media, which series are you referring to?
replies(1): >>40217054 #
17. AtlasBarfed ◴[] No.40217007[source]
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

replies(1): >>40217549 #
18. gffrd ◴[] No.40217014[source]
Their 2022 revenue was 32B yen, or 202M USD. The financial figures in Wikipedia for Square Enix are in Yen.
19. nozzlegear ◴[] No.40217040[source]
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?
replies(4): >>40217079 #>>40217103 #>>40217130 #>>40217143 #
20. marricks ◴[] No.40217051[source]
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.

21. solardev ◴[] No.40217054{3}[source]
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.

replies(1): >>40217241 #
22. nitwit005 ◴[] No.40217079{3}[source]
These are questions you can paste into your browser search bar and get perfectly good answers.
replies(3): >>40217263 #>>40217281 #>>40218079 #
23. Aqua_Geek ◴[] No.40217097{3}[source]
Block (fka Square) pays them for the redirect, IIRC.
24. pixl97 ◴[] No.40217103{3}[source]
Baldur's Gate 3 had a budget of $100 million.
replies(1): >>40218117 #
25. solardev ◴[] No.40217130{3}[source]
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_expensive_video_g...

26. ◴[] No.40217143{3}[source]
27. arkis22 ◴[] No.40217159[source]
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

28. ◴[] No.40217173[source]
29. ddtaylor ◴[] No.40217235{3}[source]
It's also a very expensive development.
replies(3): >>40217262 #>>40217444 #>>40217480 #
30. ShamelessC ◴[] No.40217241{4}[source]
And bizarrely different plot points.
replies(1): >>40217268 #
31. iEchoic ◴[] No.40217262{4}[source]
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.
32. cfeduke ◴[] No.40217263{4}[source]
> 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."

replies(1): >>40217639 #
33. echelon ◴[] No.40217266[source]
Block pays a lot of money to rent it.

I remember the Jira tickets for occasional square.com DNS updates and rental payments.

34. quchen ◴[] No.40217268{5}[source]
For example? I'm a fan since release 1997, but haven't touched the remakes.
replies(1): >>40219456 #
35. ClassyJacket ◴[] No.40217281{4}[source]
...Have you used Google recently?
36. ClassyJacket ◴[] No.40217303{3}[source]
I do think the obsession with naming everything in a series words beginning with 're' is a little unnecessary.
replies(1): >>40218645 #
37. ◴[] No.40217310[source]
38. ambichook ◴[] No.40217431{3}[source]
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?
replies(1): >>40218654 #
39. bilekas ◴[] No.40217432{3}[source]
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..

40. bilekas ◴[] No.40217444{4}[source]
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.
41. fhuebgj ◴[] No.40217473{3}[source]
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 watched a 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 ;)

replies(1): >>40219436 #
42. JojoFatsani ◴[] No.40217476[source]
It’s just you.
43. bilekas ◴[] No.40217480{4}[source]
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.

44. bilekas ◴[] No.40217549{3}[source]
Personally I haven't seen that happen, can you enlighten us with some links to source?
replies(1): >>40217606 #
45. gnabgib ◴[] No.40217606{4}[source]
Warner Bros shelves finished ‘Coyote vs. Acme’, takes $30M tax write-off [0](76 points, 5 months ago, 104 comments)

[0]: https://news.ycombinator.com/item?id=38228644

46. nitwit005 ◴[] No.40217639{5}[source]
I tried before commenting. Yes, the first page included real answers.
47. nozzlegear ◴[] No.40218079{4}[source]
I’m interested in the discussion that might arise from the question, not just the answer. If my question annoys you then you’re welcome to ignore it or ask an LLM to simulate the most efficient forum discussion possible on each topic you come across.
replies(1): >>40218556 #
48. nozzlegear ◴[] No.40218117{4}[source]
Thanks! Baldur’s Gate is one of the few video games I’ve played in the last six months, great game. That gives me a bit of a reference for what AAA games might look like.
replies(2): >>40219433 #>>40233476 #
49. nitwit005 ◴[] No.40218556{5}[source]
The top answer very clearly did a search, and dumped some wikipedia content for the person. The discussion you're looking for is basically Google Gemini output.
50. downrightmike ◴[] No.40218645{4}[source]
thank you
51. downrightmike ◴[] No.40218654{4}[source]
rebirth is a remake of remake, but doesn't use the same horrible battle system as remake, so rebirth is a retread
52. djtango ◴[] No.40219433{5}[source]
Was BG3 a AAA game? IIRC the developer wasnt one of the major companies
replies(1): >>40222220 #
53. hx8 ◴[] No.40219436{4}[source]
Literally the only thing I've played on my PS5 is Square Enix games. It moved a unit for me.
54. hx8 ◴[] No.40219456{6}[source]
Part 1 has an expanded plot line about killing fate that leads to alternative events. Part 2 has a multi-world thing happening.
55. pixl97 ◴[] No.40222220{6}[source]
I'm pretty sure the company that creates it has nothing to do with it being a AAA game, but instead the amount that was spent making the product.

We're just used to the few huge companies crowding the AAA market and turning out rather shitty games hitting you up for MTX every few seconds. BG3 is a good example of what AAA gaming should be.

https://en.wikipedia.org/wiki/AAA_(video_game_industry)

56. solardev ◴[] No.40233476{5}[source]
FYI, BG3 was unusually good because Larian is an independent studio that was able to self fund BG3 and take many years on its development without publisher interference and rushing. It's an example of a great game, but not a typical example of an AAA game.

Most AAA games these days are regurgitated sequels with a ton of micro transactions, etc (see any shooter), very limited choices (Diablo 4), season passes, etc. Many of them get poor reviews from gamers and they would often embargo reviews before release too just to drive up pre-order sales.

All this is to say... if you like BG3, you'll usually find that kind of love in indie games these days and not AAAs. What the AAAs give you is typically good graphics and UI polish (but not always), usually at the expense of gameplay, player choice, and writing quality. Starfield, for example, came out the same time as BG3 and was a terrible, soulless game.