Square Enix Faces Scrutiny After Financial Setbacks

Square Enix is in a bit of a rough spot following financial setbacks and rocky game releases. While some titles like Final Fantasy XIV have delivered consistent quality and remained popular with fans, other entries from the series as well as newer games from the publisher have shipped in questionable states and typically fail to hit sales targets. Now, after suffering a sizable hit to its stock, the Tokyo-based publisher is facing scrutiny over how it manages the development of its properties.

A recent report from Bloomberg documented the tumultuous situation Square Enix finds itself in: The company has lost close to $2 billion in value since its latest game shipped in June (Final Fantasy XVI). Final Fantasy XVI fell short of sales targets, but its struggles aren’t unique. FFXIV required a massive reboot after a failed launch, FFXV had a long-winded development cycle, and though FFVII Remake had higher sales than FF XVI, it exists alongside abrasively microtransaction-filled mobile titles like Ever Crisis and a swiftly shuttered mobile battle royale game.

Games outside the FF realm haven’t fared well either, with big-budget titles like January 2023’s Forspoken falling far short of sales targets and receiving lukewarm reception at best. Other games like Marvel’s Avengers, which is soon to be shut down after a failed attempt at establishing itself as a healthy live service title, have been little more than a jank-filled disaster.

According to the Bloomberg report, Square Enix CEO Takashi Kiryi, who stepped into the role info formally in June of this year, “intends to whittle down the number of smaller titles and decrease outsourcing to focus on big-budget games with higher potential to improve the company’s profitability.”

While a move that deprioritizes hastily built games to market sounds like a good course of action, the report highlights the questionable manner in which the publisher handles the production of its games–placing creative control solely in the hands of a single producer. Based on info from Bloomberg’s sources:

Producers are given full reign over the scope and direction of projects, and there’s a shortage of proper documentation and team structure […] contractors who’ve done work for Square Enix describe an ad hoc process where project goals can shift without warning.

Again, for any fan who tries their best to follow the development of Square Enix games, this probably isn’t surprising to hear. Though the publisher is trying to turn things around t, as reported by Eurogamer earlier this year, the company’s chief accounting officer reflected that “in light of current conditions […] this will not be easy.”

Modern Warfare III Trailer Has New Zombie Mode, Familiar Faces

A Call of Duty: Modern Warfare III soldier transforms into a zombie after choking on a purple cloud.

That purple haze got me feeling something.
Screenshot: Activision Blizzard / Kotaku

A freaky new trailer for Call of Duty: Modern Warfare III’s Zombies gave us our first look at the upcoming game, and it’s as eerie and tense as you would expect from the now legendary first-person shooter mode—except now it has some new (yet familiar) faces in the undead mix. That’s because this version of Zombies marks the first time the mode comes to a Modern Warfare game.

Read More: Modern Warfare III Comes Out In November, Brings Back Slide Canceling
Pre-order Call of Duty: Modern Warfare III: Amazon | Best Buy | GameStop

The trailer begins with a team of four seemingly unknown operatives donning night vision goggles to break into a corpse-littered facility. They come upon four corpses sat around a table, the center of which sits a device that opens to reveal glowing vials of an unknown substance. “They’re actually real, they’re actually here,” an operator says, removing his gas mask to reveal that he’s Viktor Zakhaev, iconic Call of Duty antagonist who will be the chief baddie in the main Modern Warfare III campaign. Once his team swipes the vials, they, head out of the building and run directly into a police force—this nods to the brand-new feature in this upcoming Zombies mode: You’ll duke it out against human and nonhuman enemies.

Call of Duty

Call of Duty zombie players will recognize the serum asAetherium, an element in the Call of Duty franchise used for techno-biological warfare. The trailer ends with John “Soap” MacTavish , a member of the multinational special operations unit Task Force 141, and fellow familiar face Kate Laswell preparing for the incursion against Zakhaev.

This sets up the open-world experience that Modern Warfare III’s zombie mode will offer, and its player-versus-environment that takes place across different regions that scale in difficulty and density. The official blog post accompanying the trailer promises “a greater quantity of undead than ever before,” that combines “the very best of Modern Warfare map features and systems with the tried-and-true core features of Treyarch Zombies.”

Read More: Call of Duty: Modern Warfare III Will Bring Back Every OG MWII Multiplayer Map
Pre-order Call of Duty: Modern Warfare III: Amazon | Best Buy | GameStop

The new take on the classic Zombies mode will be available when Call of Duty: Modern Warfare III launches on November 10 for PC, PlayStation 4/5, Xbox One, and Xbox Series X/S. In typical Call of Duty fashion, if you preorder Modern Warfare III, you’ll get access to the beta whenever that starts.

Sega Cancels Hyenas Before Launch, Studio Faces Layoffs

Sega has canceled the yet-to-be-released Hyenas, an extraction shooter set in space that was in development at Total War and Alien Isolation studio Creative Assembly. The publisher also canceled several other, unannounced games as part of “structural reforms” across its European operations.

Announced in June 2022, Hyenas was described as a “sci-fi space piracy multiplayer FPS” pitting teams of players against each other and NPCs as they fought to steal valuable items and pieces of pop culture, like Sonic statues and Rubik’s cubes. On September 11, the game wrapped up its most recent beta. 17 days later, Sega and the developers behind Hyenas confirmed it was canceled.

The news broke Thursday via a post on Twitter from the official Hyena’s account confirming that it had ended development on the shooter, and saying that the decision to cancel the game wasn’t “made lightly.”

“We knew our plans were ambitious,” said Creative Assembly, “And we knew we were diving headfirst into competition with some of the greats. But we believed in the journey and we’re proud to have taken every step along the way. We hope you’ll join us in remembering the action-packed, zero-G chaos and the diehard community of players who helped us make it special.”

Following reports from IGN that Creative Assembly may face layoffs, the studio tweeted its own separate statement after confirming the cancellation of Hyenas. In it, the dev team explained that it had begun the “difficult” process of “redundancy consultation.”

“This may, unfortunately, result in job losses,” said Creative Assembly. “While we must go through this incredibly difficult process, we will prioritize supporting our people at every step. For those whose jobs are at risk, we will work to re-allocate them into other available roles within [Creative Assembly] wherever possible, and ultimately minimize any job losses.”

Creative Assembly sent over this statement to Kotaku:

Creative Assembly, part of SEGA Europe, has announced the beginning of a redundancy consultation process, alongside ending development of HYENAS. This decision affects areas of its UK operations, which may result in job losses.

We understand that this has a significant impact on our people, whether they are directly at-risk of redundancy or not. Our people-first approach remains foundational to how we operate; the priority is to work with those whose jobs are at-risk and re-allocate them to other available opportunities at CA wherever possible.

We are absolutely committed to delivering more exciting game experiences long into the future, which will delight both current and potential players all over the world.

Why Hyenas was canceled

These possible layoffs and the canceled game are part of a larger situation at Sega, which owns Creative Assembly.

In a press release posted Thursday on SegaSammy’s official website, the company blamed its lower profits in the UK on less demand for games due to fewer people being stuck at home after the lifting of covid-19 lockdowns and an “economic downturn due to inflation” in Europe. To “adapt to these changes” and “improve” profits in the region, Sega is implementing “structural reforms” after reviewing in-development games.

“In response to the lower profitability of the European region,” said Sega, “We have reviewed the title portfolio of each development base in Europe and the resulting action will be to cancel ‘HYENAS’ and some unannounced titles under development. Accordingly, we will implement a write-down of work-in-progress for titles under development.”

For those worried, Sega confirmed its “Pachinko Machines Business” continues to “perform well.”

Layoffs and cancellations have been an unfortunate industry trend in 2023, as every week seems to bring another wave of firings across countless video game studios and publishers like EA, Unity, and Riot.

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