Square Enix Says Japan Needs a Gaming "Alliance"

[Doctor Setebos]

The president of Square Enix, Yoichi Wada, sees a grim future for Japanese game publishing; where companies from the West are creating all the content, garnering all the recognition, and reaping all the rewards. His suggestion? A Japanese alliance of game publishers.

More medium to small-sized companies will need to realign — case in point, Tecmo and Koei. "Individuality is important," Wada adds. "It's not forcing everything into a single corporate brand. The ideal is a holding company under which several companies and brands can hang."

Source - Kotaku (http://kotaku.com/5066915/square-enix-president-suggests-japan-alliance-for-gaming)

[Ghost Rider]

Desperate times call for desperate measures. The weaker individuals must join together for the greater good!

[ClannerDelta]

As long as they don't launch a sneak attack on any Western companies, this sounds pretty good.

[Wraith]

If Square Enix ever asks you if you accept something secret, you reply, "Absolutely I do."

[quidmonkey]

I know little of the Japanese market, but I call bullshit. The portable devs and PS2/Wii devs seem to be doing fine. It's only the high-end companies, like Scamco, Squeenix and Capcom, that are voicing these complaints.

[Doctor Setebos]

I know little of the Japanese market, but I call bullshit. The portable devs and PS2/Wii devs seem to be doing fine. It's only the high-end companies, like Scamco, Squeenix and Capcom, that are voicing these complaints.I doubt Capcom is complaining - they've been doing very well these days. Of course, they've been focusing a lot on making quality product that is arguably more profitable in the US (Bionic Commando and Dead Rising, for example).

Actually, it's probably just Square Enix complaining that the cost of developing Final Fantasy XIII is too high and they know it won't sell as well as they would like to think it will. Infinite Undiscovery tanked, and the Last Remnant is a crap-shoot. I think they're looking for some cover, and they're eyeing Tecmo as a vision of their possible future if they don't get some help.

[bean]

@Doctor - Did you read a different source article? What I read says that he feels that the Western game industry is growing faster and has more money. I didn't find anything at all about "garnering more recognition" or "reaping all the rewards".

If he felt that Squenix games weren't garnering recognition or reaping rewards, then we could all collectively call bullshit and wonder what he was smoking. However, that is not the message reported in your source, and I do not read Japanese so I can't track it back even further.

This is a much more fun story. . . but it seems either imaginary or poorly sourced.

[bean]

I know little of the Japanese market, but I call bullshit. The portable devs and PS2/Wii devs seem to be doing fine. It's only the high-end companies, like Scamco, Squeenix and Capcom, that are voicing these complaints.
This sounds like they are making a move to pick up more of the "smaller" developers as they grow from a development company into the publisher they've become. Read the source article, there is nothing (I could find) that says anything about garnering respect or rewards. He's saying the Japanese game industry may be suffering while the Western game industry is growing.

[quidmonkey]

I doubt Capcom is complaining - they've been doing very well these days. Of course, they've been focusing a lot on making quality product that is arguably more profitable in the US (Bionic Commando and Dead Rising, for example).

Actually, it's probably just Square Enix complaining that the cost of developing Final Fantasy XIII is too high and they know it won't sell as well as they would like to think it will. Infinite Undiscovery tanked, and the Last Remnant is a crap-shoot. I think they're looking for some cover, and they're eyeing Tecmo as a vision of their possible future if they don't get some help.

One
(http://www.gamasutra.com/php-bin/news_index.php?story=20607)
Two (http://www.gamasutra.com/php-bin/news_index.php?story=20573)

Three (http://www.gamespot.com/news/6198919.html)

This came up last year. It's no secret that Japanese devs are no longer on the forefront of technical expertise. This is for several reasons: Wii's success, PS3's failure, expanded portable market, Western PC devs entering the game via the 360. The Japanese market is undergoing a change. It's unclear as to whether Nintendo's success has created a bubble, or if the software is merely playing catch-up to the path the hardware blazed. But according to the Media Create numbers, many devs seem to be doing just fine.

[Doctor Setebos]

@Doctor - Did you read a different source article? What I read says that he feels that the Western game industry is growing faster and has more money. I didn't find anything at all about "garnering more recognition" or "reaping all the rewards".

If he felt that Squenix games weren't garnering recognition or reaping rewards, then we could all collectively call bullshit and wonder what he was smoking. However, that is not the message reported in your source, and I do not read Japanese so I can't track it back even further.

This is a much more fun story. . . but it seems either imaginary or poorly sourced.I know that he, and other Japanese developers, are concerned that Japanese titles are being outshined and generally ignored outside of Japan, and they feel that that is cause for alarm. I know that in one interview (which may be one of the links Baron just supplied, but I haven't had a chance to go through them yet) Wada had gone so far as to state that unless Japan publishers change direction, he sees a future where Japanese games and publishers are nearly irrelevant. My wording is maybe a bit flowery on this topic, but still hold essentially true to the basic concept being presented.

[quidmonkey]

This sounds like they are making a move to pick up more of the "smaller" developers as they grow from a development company into the publisher they've become. Read the source article, there is nothing (I could find) that says anything about garnering respect or rewards. He's saying the Japanese game industry may be suffering while the Western game industry is growing.

It's comments from TGS earlier this month. Read my links.

Stating the typical Western thinking concerning consolidation of game companies - it's bullshit! It's like Activision or EA gobbling up all these little guys.

I'm just skeptical about these "dire straits" the Japanese market is suppose to be in.

[Spectre-7]

Form feet and legs...
Form arms and body...
And I will form the head!

GO ZAIBATSU (http://en.wikipedia.org/wiki/Zaibatsu) FORCE!

[Purple Santa]

If I were smaller developers I would be concerned they were about to be swallowed up by Square Enix. This may be a nice way of saying "come join us, now....or later...by force". You choose.

I agree with the idea of SE hurting from the large development costs of FF and other projects not doing as well as planned. SE needs a better diversification plan on projects than they have now...they still it seems rely solely on FF to keep them in existence. Not sure if swallowing up other developers will get them more diversified (see Enix merger).

[Johan]

Why do Japanese developers feel they must push harder in the console space? Can't they just continue to reap the rewards of portable software? They've done very well in that space, as well as in portable hardware. Everyone can't be top dog at everything, can they? Japan's market has moved to a more portable-focused-gaming-populace; embrace it! :)

[quidmonkey]

I agree with the idea of SE hurting from the large development costs of FF and other projects not doing as well as planned. SE needs a better diversification plan on projects than they have now...they still it seems rely solely on FF to keep them in existence. Not sure if swallowing up other developers will get them more diversified (see Enix merger).

Oh their portfolio's more diversified than that. You know, like, Dragon Quest...or something.

To be fair, the Squeenix that released The World Ends With You is showing signs of EA-like growth. Of course, this is the same Squeenix which will release a port of a game created a decade ago for $40 (Chrono Trigger).

[Variable Gear]

If I were smaller developers I would be concerned they were about to be swallowed up by Square Enix. This may be a nice way of saying "come join us, now....or later...by force". You choose.

I agree with the idea of SE hurting from the large development costs of FF and other projects not doing as well as planned. SE needs a better diversification plan on projects than they have now...they still it seems rely solely on FF to keep them in existence. Not sure if swallowing up other developers will get them more diversified (see Enix merger).
Purple Santa, don't forget Kingdom Hearts. Like Shane said in the epic TGS 1UP Yours podcast (http://www.podtrac.com/pts/redirect.mp3?http://download.gamevideos.com/Podcasts/1UY101008.mp3), Kingdom Hearts is a bigger IP than Final Fantasy. Square-Enix is readying three different Kingdom Hearts games that we know of. If sure that these games will be successful enough to allow Square to continue plodding along in the production of the 77 versions of Final Fantasy 13.

[pomeroy]

Why do Japanese developers feel they must push harder in the console space? Can't they just continue to reap the rewards of portable software? They've done very well in that space, as well as in portable hardware. Everyone can't be top dog at everything, can they? Japan's market has moved to a more portable-focused-gaming-populace; embrace it! :)

Agreed.

The other thing that I would think would help them make money (and new customers) would be to develop for both major home consoles. Only being on the PS3 or the 360 is really silly at this point if you are an independent dev.

[bean]

I agree with the idea of SE hurting from the large development costs of FF and other projects not doing as well as planned. SE needs a better diversification plan on projects than they have now...they still it seems rely solely on FF to keep them in existence. Not sure if swallowing up other developers will get them more diversified (see Enix merger).

Square makes money on Final Fantasy, Kingdom Hearts, and Dragon Quest. Boatloads, in fact. They sold over 7 million copies of X and then another 5 million each for X-2 and XII. They actually tend to lose their ass when they branch out into new properties that aren't RPGs like Dirge of Cerebus and Project Sylpheed.

They might be seeing a loss right now because for the last two years they haven't released anything in-house that wasn't a handheld title except for the really underwhelming Dragon Quest Swords, and the games they've published have been either really bad or simply obscure (Odin Sphere).

Infinite Undiscovery was also published by them, but their first big in-house next-gen game doesn't come out until later this year (The Last Remnant). Next year they publish Star Ocean and Final Fantasy XIII is due out. . . so they'll be doing fine soon enough. Maybe they'll prepare for the next generation after this one better and won't have their first big titles coming out 3 years after launch.

[DoctorFinger]

Here, free of charge, is my 4 point plan to bring the Japanese gaming industry out of it's funk.

1) Embrace the internet. And I don't mean embrace it the way the Korean MMO makers do. I mean look at every single game you make and ask yourselves: "How can we incorporate multiplayer play into this game." I'm not saying that every game needs MP, but in the current climate over there it's clearly an afterthought at best.

2) Choose a direction and stick with it. You're a studio. Do you make big budget, mainstream games for the newest hardware, or do you make quirky, experimental stuff for the Wii, DS & PS2/PSP? Because with very few exceptions no studio (not publisher, but studio) can do both well. Once you make a chioice, embrace it. There's nothing wrong with making quirly RPGs for the PS2, so long as you don't try to take the same game, slap on some new graphics, and call it a PS3 title.

3) Try some new licenses. For all of the big name Japanese properties out there (that began outside of gaming) , we here in the West seem to only get the same 4 in an endless loop: Dragonball, Naruto, Inuyasha and Gundam. Try taking some other properties and adapting them into games.

4) Don't be too beholden to the past. I know there were a lot of great games in the past with torturous save systems and painful inventory management. People also used to do just fine without flush toilets, that doesn't mean we should go back to crapping in the back yard. The same goes for games. Just because Dragon Quest 1 only gave you one save point every 2 hours doesn't mean that your $30M mega RPG has to do the same.

[Doctor Setebos]

4) Don't be too beholden to the past. I know there were a lot of great games in the past with torturous save systems and painful inventory management. People also used to do just fine without flush toilets, that doesn't mean we should go back to crapping in the back yard. The same goes for games. Just because Dragon Quest 1 only gave you one save point every 2 hours doesn't mean that your $30M mega RPG has to do the same.I'm liking this one.

[KingGorilla]

I believe that in the wake of WWII, the treaty forbids this manner of organization on the part of the Japanese.

[Purple Santa]

Here, free of charge, is my 4 point plan to bring the Japanese gaming industry out of it's funk.
*Snip* - laundry list

I agree with #2&3. Those suggestions can affect their bottom line and offers opportunities to better their business plan.

#1- Not sure how the internet would increase volume for their games. Unless there is more internet in the homes in Japan, but I thought gaming cafes etc was where most Japanese went for internet usage. My understanding of the internet and Japan may be out dated information. My understanding was the internet was still very expensive for home usage...but used outside of the home. Unless you are talking about games on the phones...now that would be an idea...but not sure online playing for console games there is a way out of the funk.

#4- I agree that still idolizing old classics and implementing them into newer games isn't really practical. But that $30 million project is a lot less scary when based upon something they are know that works. However, i'm not sure fixing old time game play issues, like not being able to save for 2 hours, will bring the companies out of their funk. You can update the game but it doesn't mean it's not still stale...I know companies feel comfortable doing it and it might make more money...but I look to your #2, looking toward innovation maybe at smaller titles may be a key. Or at least finding smaller projects that can provide revenue between the big projects...hello Square-Enix...small projects that don't remind the public of your LARGER projects...

[KingGorilla]

The elephant in the room is that first one. Japanese developers are years behind the curve when it comes to implementation of features and distribution. If Steam is top tier, Xbox Live is AA, The PS3 and Wii are still playing Pee-Wee. Not to mention how far behind their models are compared to global trends. When you look at what is hot in the rest of Asia, Eastern Europe, North America: Online shooters, MMOs, shit, even the RTS is coming back in a big way.

[LongStepMantis]

tZZv5Z2Iz_s

SE: "And I'll form...the head!"

I expect their competitors to put up a good fight, then die with an eventual single sword swing.

[Xerxes]

I think they pointed out Tecmo and Koei in order to get them to finally give and be accepted into the fold. Although last I heard Tecmo and Koei was looking to merge.

[DiBiddilyBop]

If Square Enix ever asks you if you accept something secret, you reply, "Absolutely I do."

Hahaha, well played.

[Johan]

The elephant in the room is that first one.

Well what the hell is an elephant doing in the room? Get it the heck out of here! :)

[KingGorilla]

Times are tough, and that show I do with the donkey is not paying the bills like it used to.

[KamaItachi]

Square Enix says a lot of things.

[Johan]

I don't think Japan needs the Alliance. I think it needs the Horde.

:D

[DoctorFinger]

I don't think Japan needs the Alliance. I think it needs the Horde.

:DOh. My. God. That joke just brained my damage.

[Doctor Setebos]

I don't think Japan needs the Alliance. I think it needs the Horde.

:DSeriously, it took 30 posts for this to make an appearance? I was betting on it hitting within the first 5.

You people are really starting to disappoint me these days.

[pomeroy]

Seriously, it took 30 posts for this to make an appearance? I was betting on it hitting within the first 5.

You people are really starting to disappoint me these days.

It's way worse when the Doctor is disappointed with you. I'd rather him just be mad. Just like with my parents.

[Victorvonviolence]

Quick! Let's release another Gundam game!

[mister slim]

Square doesn't need to grab smaller companies and assimilate them. Square needs to completely rebuild their development strategies and their business culture.

[Raen]

It's way worse when the Doctor is disappointed with you. I'd rather him just be mad. Just like with my parents.

Hell I'd rather have them disappointed. My step dad is a big dude. He'd beat my ass.

[kropotkin]

The fact of the matter is Japan has lost its touch. If you want to see who the winner is when it comes to video games right now then it's to another country one should look. Oddly enough it has similar attributes to Japan. Here they be:

1) It's an island nation.
2) Has an imperial past.
3) A very long and troubled history.
4) Has been the home of developers making unique and engrossing video games for a very long time.
5) Is in the same lattiude....give or take.

Where am I talking about? The British Isles. Take a look at the list of games that have been released this year that people have praised and enjoyed and all have come from Perphideous Albion:

Burnout Paradise
GTA4
Wipeout Pulse/HD
Fable 2
LittleBigPlanet
Banjo Kazooie Nuts and Bolts
Pure
Lost Winds
Multiwinia
War Twat

I may be stretching it a bit with War Twat but you get the gist. All I'm saying is that for some reason it is the UK's turn to shine. So if you seek gaming inspiritation then look across the Atlantic, not the Pacific. You might like what you see.

[Variable Gear]

Here, free of charge, is my 4 point plan to bring the Japanese gaming industry out of it's funk.
And here is my competing free plan that seeks to advise Western Developers.

1) Make more third-person and first-person shooters. There aren't enough.

2) Keep that shitty art style. Americans wouldn't know style if it crapped on their face,

3) Rely on co-op when the core game isn't up to snuff.

4) Make sure to make franchises out of your new IPs. No one likes to be surprised anymore.

[Johan]

Variable Gear: lol; too true indeed! :)

[bean]

And here is my competing free plan that seeks to advise Western Developers.

1) Make more third-person and first-person shooters. There aren't enough.

2) Keep that shitty art style. Americans wouldn't know style if it crapped on their face,

3) Rely on co-op when the core game isn't up to snuff.

4) Make sure to make franchises out of your new IPs. No one likes to be surprised anymore.

1. There are a lot, but I like the ones that are great (Halo, CoD 4, Gears, Dead Space, Bioshock (if you consider it a shooter), Half-Life 2, etc.) I could do without all the crappy ones, but you could argue that the people making Medal of Honor: Airborne would have also made a sub-par RPG, puzzle or party game.

2. That's too general a statement. There are western games with incredible art and Eastern games with ridiculously over-the-top art. It's all subjective. I'm the first person to say that I'm really damn tired of brown and grey metallic worlds with big, hulking dudes wearing metal armor, so I disagree with the broad statement, but would absolutely agree with a more detailed critique.

3. This doesn't happen enough to be a trend does it? For a trend, you'd need like ten examples right? I can only think of one bad game that has co-op (Army of Two). The other co-op games I can think of easily are all fucking great (Fable 2, GoW, Saint's Row 2, etc.)

4. This is definitely a trend, but I think it is a worldwide trend.

[Schnoogs]

Japan has decided to align itself with German and Italian game publishers....

[KingGorilla]

Japan has decided to align itself with German and Italian game publishers....

I just read that Crytek is orchestrating a hostile takeover of CD Projekt, something about breathing room.

[mister slim]

Now we know what really happened to Rockstar Vienna. Closing was just a cover-up.

[Variable Gear]

That's too general a statement. There are western games with incredible art and Eastern games with ridiculously over-the-top art. It's all subjective. I'm the first person to say that I'm really damn tired of brown and grey metallic worlds with big, hulking dudes wearing metal armor, so I disagree with the broad statement, but would absolutely agree with a more detailed critique.
You don't deserve a more detailed critique.
This doesn't happen enough to be a trend does it? For a trend, you'd need like ten examples right? I can only think of one bad game that has co-op (Army of Two). The other co-op games I can think of easily are all fucking great (Fable 2, GoW, Saint's Row 2, etc.)
There are tons of games that depend on co-op because of the unsatisfying nature of standard gameplay. All of the Lego games instantly spring to mind. The Halo series comes to mind soon after. Not all games with co-op are "fucking great," and not all the games you mentioned have interesting co-op. Fable 2, for example, is diluted by the fact that you can't take your unique character into your friend's world.

I wasn't being completely serious, bean, but I still think it's ridiculous to criticize Japanese developers for their reliance on traditional gameplay concepts, character archetypes, story arcs and genres when Western developers fall into the same repetitive funk.

[Schnoogs]

Somewhere out there French and Chinese developers are shakig in their boots

[bean]

I wasn't being completely serious, bean, but I still think it's ridiculous to criticize Japanese developers for their reliance on traditional gameplay concepts, character archetypes, story arcs and genres when Western developers fall into the same repetitive funk.

I didn't criticize them on these things personally, so I agree with the overall statement, and the intent of your satire. I just think it missed the mark a bit in the particulars I mentioned (though obviously we agreed when I pointed out that they both had certain bad traits as your intent was to show the hypocrisy of gamers criticizing Eastern developers for doing the same bad things that some Western developers also do).

About weak co-op, I disagree with your examples. I'm not a fan of the Lego games because they are so simplistic, but that is what makes them so accessible for their intended young and casual audiences. If you stack their gameplay next to that of many of the casual and family-oriented games on the Wii, they are very similar. Of course, I'm a gamer, so I don't like those much either. Still, if someone is playing Mario Kart or Lego Star-Wars, I can have a fun thirty minutes playing with them. I can tell you that if I was tasked with designing a game accessible to young, casual audiences, I would look to these as good examples of how to do it well. That seems to be the Catch 22 for HD consoles. . . they get criticized for not having enough family and casual games but then only Zelda-esque titles like Kameo and Naruto get any love, while party games like Lego Star Wars and Scene It are criticized for being shallow.

Still, I think we are actually seeing a lot of innovation from both the West and the East. I loved the gameplay additions made to Tales of Vesparia and I'm looking forward to The Last Remnant. Plus, Mass Effect, Mirror's Edge, Portal, Dead Space, and EDF 2017 (though only a new IP over here) are all really cool new IPs with interesting gameplay.

Plus, there is nothing wrong with sequels if they freshen up the formula enough to keep us all having fun and being interested. Fable 2, CoD 4, Bioshock, and Tales of Vesparia are awesome improvements on their IP.

[Variable Gear]

Bean, I think that's the best post you've ever written. I agree with you, for the most part.