I do not know how this thread trickled into Square history and best rpg of decade on 360. Yes, alot of development talent has left. But this is happening to all companies not just Square-Enix. They still have two big shots in Yuji Hori and Hiroyuki Ito(Their best talentwise as far as I'm concerned). They still have their major artist in Yoshida and Nomura with Kamikokuryo coming up strong. They still have many of their good composers. They still have Kitase who I believe works best when he collaborates with Ito. Even Hiromichi Tanaka is a well respected developer in Square's past. I think a huge problem is that some of their development staff is getting pushed into areas of development where they don't excel. I think Yoshi P is going to do pretty well with the company in the producer/director role. Where is Hiroyuki Ito? He played a huge part in the most critically acclaimed Final Fantasies according to review sites. They should hire new meat in the producer/director section and stop moving developers from their core strength. Maybe they should headhunt Fumito Ueda?
Square-Enix has dropped off being the best in the business a bit. But it's not because they just lost alot of talent. Alot of companies have stepped up their level of quality as well. It is not uncommon to see many rpgs nowdays rating near the 9/10 review scores.
Also I disagree with the best rpgs made by japanese companies on 360 this decade. The top three in my book are Tales of Vesperia, Dark Souls, Lost Odyssey being third. But that's only because jrpgs in general were not super great on the 360. Lost Odyssey borrowed a mechanic from Legend Of Dragoon, the magic system was as barebones as you can get, and it just felt archaic like a stripped down Final Fantasy. If it weren't for the decent story, good pacing and great music, I maight have fallen asleep playing at times. I still love Sakaguchi though and The Last Story shows that he still has the rpg intuition. TLR was above average to good but not great. I enjoyed the scale and layout of the game but I never got an "Oh ****/jaw dropped" playing it.
I agree they should milk the Luminous Engine for 10-20 titles at least. So they can focus on development and not the tech. Also while I had fun playing XIII and XIII-2. I hope we get no more sequels in Final Fantasy unless it is the epitome of being well received by fans and critics alike.