Square Enix CEO Resigns!

Reidmar wrote:

Mikey Go WOOGA wrote:

I have no idea the status of tax laws and various regulations and how they're changing, but that could play a part in increasing costs.

Considering gaming is a multi-billion dollar industry... No. Just no. Mark my words, once the economy picks back up, prices will return to normal and fans will bitch about the newest FFXXXLLVI whatever generation.

I'll be there for when FFXXX finally comes out.

TheIan wrote:

Now, I'm no Logistics analyst, nor do I work in Accounting and foretell prophecies, but how is this a failure? Weren't two of these three games big hits with the reviewers and critics?
Idun'getit

Well, AAA games are really expensive to make. I have no idea how much those games cost to produce or how much money is made per sale so I cannot really say, but if they did not pull in a profit then there you go.

Exactly. We need to consider how much Square Enix spent making those games in the first place. Clearly, it was a great deal, else they wouldn't be reporting losses with those sales numbers.

Reidmar wrote:

Mikey Go WOOGA wrote:

I have no idea the status of tax laws and various regulations and how they're changing, but that could play a part in increasing costs.

Considering gaming is a multi-billion dollar industry... No. Just no. Mark my words, once the economy picks back up, prices will return to normal and fans will bitch about the newest FFXXXLLVI whatever generation.

While I was probably off base on taxes (taxes usually tax profits before tax expenses, if you're already losing money at that point, you don't pay taxes. In the US, you can carry that loss forward to offset profits before taxes in future years), the size of an industry has nothing to do with it. The auto industry is bigger than gaming, and yet GM and Chrysler both managed to shit themselves.

Though it could be something like the US payroll taxes. Those are based on employee salaries, not company profits, and could very well drive you from a profit to a loss. But like I said, I have no actual knowledge about the taxes and regulations and how they may have changed recently to possibly increase SE's costs.

Wolf wrote:

Exactly. We need to consider how much Square Enix spent making those games in the first place. Clearly, it was a great deal, else they wouldn't be reporting losses with those sales numbers.

Hi Wolf.. *nods at message box*