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ARR is a savior!Follow

#1 Feb 05 2014 at 7:22 PM Rating: Good
http://ca.ign.com/articles/2014/02/05/square-enix-financials-cast-final-fantasy-14-as-saviour

Commence arguments with Duo and Killua...can get Preludes in there as well.



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#2 Feb 05 2014 at 7:48 PM Rating: Good
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unfortunately this topic would be an appropriate one for them to question the potential longevity of this success based on their current viewpoints. It wouldn't have the end result many of us would like.
#3 Feb 05 2014 at 7:48 PM Rating: Good
In before drama!

Realistically, yes, they can sound off about the longevity of the game, but at the same time they can't utilize 'shrinking subscriptions' and 'mass exodii' as a justification because that simply isn't the case -- The game is strong, the userbase is stronger than it's ever been, and it isn't declining at all nor has it been.

They can slam on the future of the game all they want, in 6 months time we can revisit it again. In either case, this bring to close the constant argument of 'the game is in freefall' that they love to bring up so much.

Edited, Feb 5th 2014 8:51pm by darexius2010
#4 Feb 05 2014 at 8:43 PM Rating: Default
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Initial rush due to being a new MMO, the fact it's a PAID TO PLAY MMO, this really isn't surprising or "exciting" news honestly. What will be surprising is if this game survives.

It's fairly ...basic and nothing interesting lol. That will be a worthy news story. Hell XI kept SE afloat for many years, so they're probably banking on ARR to do the same.
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#5 Feb 05 2014 at 8:48 PM Rating: Default
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Was SE really in danger of going under? I think you just trolled yourself Smiley: lol
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#6 Feb 05 2014 at 8:49 PM Rating: Decent
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Theonehio wrote:
Initial rush due to being a new MMO, the fact it's a PAID TO PLAY MMO, this really isn't surprising or "exciting" news honestly. What will be surprising is if this game survives.

It's fairly ...basic and nothing interesting lol. That will be a worthy news story. Hell XI kept SE afloat for many years, so they're probably banking on ARR to do the same.


eh, i think it'll bring in cash for awhile. there are enough fans, and while the game may not offer the most interesting or innovative gameplay, it is a nice fun little place for FF fans to hang out. thats kind of all i expect from it anymore.

also, i apologize for being a ****, but the word "Brew'd" in your sig is grinding my gears because the apostrophe saves literally zero time/space/effort. that is all.
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#7 Feb 05 2014 at 9:46 PM Rating: Decent
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Montsegurnephcreep wrote:
Commence arguments with Duo and Killua...can get Preludes in there as well.

Trolling only leads to more trolling. Stop the vicious cycle!
#8 Feb 06 2014 at 1:20 AM Rating: Excellent
Very nice to see this!

There's always room for improvement, but SE really knocked ARR out of the park, all things considered. I'm really excited for when we'll eventually learn more about the game's first expansion.
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#9 Feb 06 2014 at 2:33 AM Rating: Good
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Llester wrote:
Theonehio wrote:
Initial rush due to being a new MMO, the fact it's a PAID TO PLAY MMO, this really isn't surprising or "exciting" news honestly. What will be surprising is if this game survives.

It's fairly ...basic and nothing interesting lol. That will be a worthy news story. Hell XI kept SE afloat for many years, so they're probably banking on ARR to do the same.


eh, i think it'll bring in cash for awhile. there are enough fans, and while the game may not offer the most interesting or innovative gameplay, it is a nice fun little place for FF fans to hang out. thats kind of all i expect from it anymore.

also, i apologize for being a ****, but the word "Brew'd" in your sig is grinding my gears because the apostrophe saves literally zero time/space/effort. that is all.


Was the 'cool' way to say it back then lol.

Edited, Feb 6th 2014 12:34am by Theonehio
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#10 Feb 06 2014 at 7:50 AM Rating: Good
I think the convention for saying "brew'd" instead of "brewed" was that you were using a Primeval Brew on him, not that you were sticking him in a metal tank and fermenting him.

Technically, though, it's a legit use of the apostrophe to replace the missing letter, even if it's not actually saving any space or effort.

Edited, Feb 6th 2014 8:50am by Catwho
#11 Feb 06 2014 at 10:14 AM Rating: Excellent
Theonehio wrote:
Initial rush due to being a new MMO, the fact it's a PAID TO PLAY MMO, this really isn't surprising or "exciting" news honestly. What will be surprising is if this game survives.

It's fairly ...basic and nothing interesting lol. That will be a worthy news story. Hell XI kept SE afloat for many years, so they're probably banking on ARR to do the same.


Before ARR I've yet to see a post-2005 MMO that performed according to the company's expectations (or above). It's always a disappointment followed by a rapid transition to F2P while the immediate dev support suffers.

There is nothing of the sort in the horizon for ARR, so while we can downplay these news as "business as usual" I don't think that's the case at all. One of the most important things for an MMO's continued success is that the company is happy with the financial outcome and thus has an incentive to keep putting in the effort.

Edited, Feb 6th 2014 7:14pm by Hyanmen
#12 Feb 06 2014 at 10:42 AM Rating: Excellent
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We can acknowledge the typical spike and downward slope of an MMO as par for the course.

What makes this situation special above others is that the spike was not financially anticipated by Square Enix, and the spike was inpactful enough to change the actuality far, far above the expected profit margin (which was in fact, predicted to be a significant loss. )

That tells you right now that the expected success of this game is already above and beyond what they had planned. If it was that much of a profit spike, how long of a decline would you expect to have to go on before the numbers meet their expected range? And that's not even including returning players due to additional content and updates coming fairly regularly.

This game could 'crash' in the eyes of the player-base and still be successful in the eyes of SE, which is what matters. Given their low expectations of success for the game, that's a likely scenario. Again, FFXI stabilized at a third of the bragged 1.5 million number and is still going on strong.

The risk/reward game for SE in this aspect had already been played out to a resounding success. Now it's just deciding what measurement of retention they want to go for, and what sort of growth pacing they can manage.
#13 Feb 06 2014 at 10:56 AM Rating: Good
One thing I recall learning in business school was that Japanese levels for the total number of units sold for an item to be considered a success are lower than the number of units the US and other countries consider successful. Half a million units of software is a very good number to Japan. 1.5 million units of software is a VERY VERY good number. Many hardware companies consider a unit to be successful if they sell 100K units of the device.

Edited, Feb 6th 2014 11:56am by Catwho
#14 Feb 06 2014 at 11:23 AM Rating: Decent
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I'm confused by the stance that FFXIV dying would be a huge strike for SE in the first place? [:puzzled:]

I mean, one of the reasons every single company was jumping on the MMO bandwagon is that the profit margin for a successful game is huge. They're cheaper to produce for big budget titles, but then you get to charge a purchase price and subs for each additional month on top of the first month.

I can't get the link to load, but I'm guessing that the initial sales of FFXIV did quite a bit to cover their investment costs. FFXIII was wildly profitable (it sold the most of their titles, excepting FFVII, iirc. It probably wasn't as profitable as FFX, due to budget increases, but that's still a lot of profit).

If FFXIV sold one million copies in that early period before the heavy sales, I'd bet that fully covered their development costs for the game. Then each additional month is a lot of profit, because that's maintenance fees and the additional development costs.

So, even though it'll die eventually, this means FFXIV is probably in the period of its life where SE has recouped their investment, and the question now is how much profit they can actually generate from it. Sure, it's better for the company to get 6 years of high profits from the game, but even if the game peters out in 6 months, this would still probably be a very solid, profitable venture for the company.

So... I guess I don't really see what the fuss is about for the doomsayers? Obviously the death of ARR wouldn't kill SE, because the game made them a solid profit regardless of how long it went?

Sure, they need to judge their operating costs for the future, and it seems they're expecting a profit of 6b yen for this year. But ARR is only going to amount for a small part of that. Assuming a 1 -> 100 dollar to yen conversion, and a solid 12 months of 1 million subscribers, that's 18 billion yen. So unless they intend for ARR to be their sole source of revenue (doubtful, considering they have the FFX remaster and Lightning Returns both coming out early this year, before we even think about other titles), then I'm doubting that ARR is their crutch right now.

They'll ride the high, and they'll move on to something else when those profits start drying up.
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#15 Feb 06 2014 at 12:27 PM Rating: Default
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Couple of things I'd like to point out...

1.5 million registered users is not the same thing as 1.5 million units sold is not the same thing as players who have paid subscriptions.

1.5m represents the number of registered accounts that were active shortly following launch. Keep in mind that SE reactivated all of the old 1.0 accounts during the ARR trial period. If you had purchased 1.0 and never logged in to play ARR, you'd still be counted among the 1.5m because your account was made active during the trial for several weeks.

2 sales 1 subscription(giggety). There are many players who play on both the current platforms and might possibly plan on adding PS4 when that is released. They've purchased several copies, but only maintain a subscription for 1 account. There are also players who purchased more than 1 copy for the same platform for the purpose of upgrading/promoting SE(standard edition) to CE(collector's edition). Sales are always going to be higher than subscribers, especially being a multi-platform MMO.

SE's financial reports are not just based on the performance of FFXIV. They develop, market, produce and distribute many, many games. From PC to console, phones to tablets, handhelds and browser-based social media games. Movies, comic books and graphic novels? Sure. Toys and figurines? Why not. List goes on...

tl;dr

XIV has come a long way, but it's not the driving force in a 10 billion yen swing. The title of that article makes me want to slap whoever paid the writer... hmmm, wonder who it could be? Smiley: sly

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Rinsui wrote:
Only hips + boobs all day and hips + boobs all over my icecream

HaibaneRenmei wrote:
30 bucks is almost free

cocodojo wrote:
Its personal preference and all, but yes we need to educate WoW players that this is OUR game, these are Characters and not Toons. Time to beat that into them one at a time.
#16 Feb 06 2014 at 12:42 PM Rating: Default
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idiggory, King of Bards wrote:
If FFXIV sold one million copies in that early period before the heavy sales, I'd bet that fully covered their development costs for the game. Then each additional month is a lot of profit, because that's maintenance fees and the additional development costs.

I'll take your money. Any amount Smiley: nod
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Rinsui wrote:
Only hips + boobs all day and hips + boobs all over my icecream

HaibaneRenmei wrote:
30 bucks is almost free

cocodojo wrote:
Its personal preference and all, but yes we need to educate WoW players that this is OUR game, these are Characters and not Toons. Time to beat that into them one at a time.
#17 Feb 06 2014 at 12:43 PM Rating: Good
FilthMcNasty wrote:

SE's financial reports are not just based on the performance of FFXIV. They develop, market, produce and distribute many, many games. From PC to console, phones to tablets, handhelds and browser-based social media games. Movies, comic books and graphic novels? Sure. Toys and figurines? Why not. List goes on...

tl;dr

XIV has come a long way, but it's not the driving force in a 10 billion yen swing. The title of that article makes me want to slap whoever paid the writer... hmmm, wonder who it could be? Smiley: sly


SE cited FFXIV specifically in their financial report for their financial success. They also cited a browser-based social media game and a smartphone game.

These three are the leading causes behind the profit margins. To cite FFXIV specifically is remarkable since the FFX/X-2 remake which sold very well for a tiny investment was released during the same time period.

It's not wrong to pick out FFXIV as a driving force as that's what SE themselves stated. Are you going to slap Square-Enix for telling things how they are?


Edited, Feb 6th 2014 9:43pm by Hyanmen
#18 Feb 06 2014 at 1:07 PM Rating: Good
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FilthMcNasty wrote:
SE's financial reports are not just based on the performance of FFXIV. They develop, market, produce and distribute many, many games. From PC to console, phones to tablets, handhelds and browser-based social media games. Movies, comic books and graphic novels? Sure. Toys and figurines? Why not. List goes on...

tl;dr

XIV has come a long way, but it's not the driving force in a 10 billion yen swing. The title of that article makes me want to slap whoever paid the writer... hmmm, wonder who it could be? Smiley: sly


And the last report that figured heavy losses were also majorly based on their failing arcade division and iirc they either gutted or removed that branch of entertainment entirely. FFXIV 1.0's flop didn't help matters but despite what people claimed back then it wasn't the sole reason for their taking a massive hit over the past two years. If anything, it's more the damage it did to the brand name than anything else that hurt their video game division.

Plus, prior to 1.0's launch they acquired quite a few studios that hadn't yet given a return on investment so they'd been operating in a hole for a while.
#19 Feb 06 2014 at 1:12 PM Rating: Excellent
The folks at SE say it's the biggest contributing factor... that's good enough for me. Smiley: smile

More importantly, though, is the benefit of rising popular opinion. SE had lost a lot of credibility with gamers after FFXIII and XIV 1.0, but now SE has really regained a lot of that respect. Outside of the small number of people who played Yoshi-P's revitalized 1.0, no one -- and I mean NOBODY AT ALL -- expected that ARR could be this good.

Hopefully, FFXIII-3 is good (early results indicate that it's yet another improvement for the XIII series), but FFXV could turn out to be the game that really solidifies SE as being "back." SE can't pin everything on ARR's success... the company needs another home run, fairly soon, to be the Titan HM it once was.
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#20 Feb 06 2014 at 1:48 PM Rating: Good
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I just wish the cast of FFXV wasn't such a boy's club. Smiley: glare

I want some more leading ladies, dammit.
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#21 Feb 06 2014 at 1:50 PM Rating: Excellent
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idiggory, King of Bards wrote:
I just wish the cast of FFXV wasn't such a boy's club. Smiley: glare

I want some more leading ladies, dammit.


After 8413434 games of Lightning & Friends I'm fine with it. Plus, there's Stella.

edit: Oh, and don't forget FFX-2 Smiley: mad

Edited, Feb 6th 2014 2:53pm by BrokenFox
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#22 Feb 06 2014 at 1:50 PM Rating: Decent
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[EDIT]

Or, you know, ANY leading ladies.

FFXIII was a relatively balanced cast. Not perfectly balanced, but closer than you generally see.

So then we get an all-male main cast. That makes sense.

.... Did I really hit new post instead of edit?

Don't mind me. Carry on.

Edited, Feb 6th 2014 2:50pm by idiggory
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#23 Feb 06 2014 at 3:09 PM Rating: Decent
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Thayos wrote:
The folks at SE say it's the biggest contributing factor... that's good enough for me. Smiley: smile


Except that's not what they said. The author of the article made it out that way, but the only thing that the financial report states about FFXIV is...

SE Financial Press Release wrote:
Software sales and operation of "Final Fantasy XIV:A Realm Reborn", a massively multiplayer online role playing game released in August 2013, have been making favorable progress.


It's a contributing factor for sure, but by no means does this statement suggest that XIV is the largest contributor. Hell, simple math and common sense will tell you that can't be true. Did I give you too much credit thinking you'd know better than to believe anything you see on the internets? I am disappoint Smiley: frown



Edited, Feb 6th 2014 4:10pm by FilthMcNasty
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Rinsui wrote:
Only hips + boobs all day and hips + boobs all over my icecream

HaibaneRenmei wrote:
30 bucks is almost free

cocodojo wrote:
Its personal preference and all, but yes we need to educate WoW players that this is OUR game, these are Characters and not Toons. Time to beat that into them one at a time.
#24 Feb 06 2014 at 3:21 PM Rating: Excellent
Quote:
Software sales and operation of "Final Fantasy XIV:A Realm Reborn", a massively multiplayer online role playing game released in August 2013, have been making favorable progress.


The fact that ARR was singled out is very meaningful. Rather than be a drag on SE's finances, ARR is turning into a boon for SE going forward.

You're right, the release didn't say ARR is the lone driving force... but it is one of the driving forces, or else it wouldn't have been named here.

Good news all around for SE and ARR fans.
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#25 Feb 06 2014 at 3:34 PM Rating: Excellent
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idiggory, King of Bards wrote:
Or, you know, ANY leading ladies.
Terra, Celes, Garnet, Ashe, FFXI's underage trio (Prishe, Lilisette, Aphmau). We've had our share.
Quote:
So then we get an all-male main cast. That makes sense.
Assuming this was truly written and done with when the game was called Versus XIII, this was planned all along for some reason. Assuming they were just playing tetris for almost 8 years before realizing they had to get any work done on versus/FFXV, they probably wanted something different from what FFXIII brought to the table.

Edited, Feb 6th 2014 4:35pm by Ruisu
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#26 Feb 06 2014 at 3:50 PM Rating: Decent
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Thayos if I ever run for office, I think I've found my PR man Smiley: sly
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Rinsui wrote:
Only hips + boobs all day and hips + boobs all over my icecream

HaibaneRenmei wrote:
30 bucks is almost free

cocodojo wrote:
Its personal preference and all, but yes we need to educate WoW players that this is OUR game, these are Characters and not Toons. Time to beat that into them one at a time.
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