3d ago

Square Enix’s major shareholder drops 100-page presentation criticizing how the company is managed, rallies other shareholders

Square Enix’s major shareholder drops 100-page presentation criticizing how the company is managed, rallies other shareholders - AUTOMATON WEST

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3D Investment blames this on the underperformance of Square Enix’s console and mobile game sectors
No.
as well as exceptionally large write-downs related to cancelled games.
Yes.
Interestingly, they also consider the company’s arcade and publishing sectors to be “non-synergistic” businesses that are ultimately pulling down the company’s value with lackluster performance.
Fuck no.
Squenix's problem is that they keep going too big. They are trying to be a Sony or Nintendo, when they're really more of a Devolver. They have franchises with big fanbases, but they're trying to force their games to become COD levels of HUGE by just increasing the budget. And when the return doesn't keep up with investment, they keep missing the point.
It happened with Tomb Raider. It happened with Deus Ex. And it's happening with Final Fantasy. The games do have passionate fans, but they simply aren't for everyone. And that's not a bad thing.
What Squenix refuses to accept, is that they've hit a growth ceiling they can't break through by spending more. But instead of growing wider by diversifying with new IPs or more titles at more reasonable budgets, they keep trying to focus on their latest big thing and grow it taller and heavier than it can support.
- Maybe also selling off valuable IP for cheap to do NFTs wasnt an amazing idea i dunno
  
  Or adding microtransactions to a single player game.
  Or considering any franchise with an entry that has lost money dead and gone, as if it didn't still sell millions. Like, just budget the next one to fit the demand?
  Or their total allergy to doing anything actually new. They keep shedding IPs yet only ever back existing franchises.
  Or spending almost as much on marketing as development, as if you can just force people to be interested in a sequel for a game they didn't play or a genre they don't enjoy.
  I don't know how Squenix games can be so full of developer passion with execs this braindead.
  And what the fuck does 3D Investment mean their publishing is a loss? NO SHIT. THAT'S HOW YOU FIND THE NEW FRANCHISES.
  VCs, as shitty as they are, at least get that backing 30 small projects makes sense because that improves your chances of being on board with the one that blows up big enough to pay for the rest.
  
  clutching of pearls intensifies
This is just how people richer than us browbeat companies into doing less and charging more because the data shows customers are willing to accept it.
You lost me at shareholder. When I see that word, I know nothing worth reading follows
IMHO: relationship between public traded companies and shareholders is an endless exchanges of self help books on "how make money". It's whole economy is not based on either products or services... other than aforementioned books.

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