Square-Enix has reaffirmed their committment to big-budget projects and HD gaming in their latest investor report. Yosuke Matsuda, President of Square-Enix, made the bold statements in the just-published 2013 Annual Report.
Matsuda blames the recent financial troubles at Square-Enix on the changing realities of the gaming industry and the poor performance of three HD games made for western markets. Sleeping Dogs, Tomb Raider, and Hitman: Absolution all sold under expectations. He supplied a number of reasons why these games did not blow up the charts, including the fact that retail disc sales fell off quickly and incentives to retailers had a negative impact on profits. Despite the performance of HD gaming in the West, Matsuda threw down the gauntlet.
“Titles of large-scale development are our flagship titles, showcasing our technologies. We will never lower the flag of such titles. In fact, they are strong brands and therefore have the potential of diverse content exploitation.”
In your face investors! Square-Enix plans to continue producing HD games and soldier on in the hostile environment by streamlining development, offering more game tie-in merchandise, and publishing games on mobile devices. Matsuda went on to say that they could expect more profit from digital distribution and suggested that free-to-play and other business models could be explored.