Square Enix to rely more on foreign markets

Within five years, the RPG maker wants three out of every four dollars it earns to come from outside Japan.

Last week the Financial Times said Japanese role-playing game publisher Square Enix is looking for publishing allies in the US and Europe to help boost the amount of revenues it derives from foreign markets. According to the article, foreign sales accounted for no more than 20 percent of the company's revenues, and the Final Fantasy publisher was hoping to make it 50 percent within three years.

Square Enix president Yoichi Wada today issued a statement contradicting that report. He said that the company already gets half of its revenues internationally, and wants to boost that even more.

"It is crucial for us to expand our businesses on a global basis," Wada said. "Given the fact that the size of overseas markets is now more than three times as large as the domestic market, we recognize numerous growth opportunities. Our strategy to seize such opportunities is two-fold; (i) strengthen our own distribution channels developed by our local subsidiaries in these geographic areas, and (ii) diversify our content in accordance with user preferences in each area. Through these strategic initiatives, our initial goal within a time frame of three to five years is to raise our foreign sales ratio for console/handheld games from its current 50 percent level to approximately 75 percent. We shall continue our effort to better serve overseas markets."

As for enlisting the aid of foreign publishers, such a move would not be entirely unprecedented for the company. Before role-playing game specialists SquareSoft and Enix merged their operations, SquareSoft had a joint venture with Electronic Arts called EA Square, which brought games like Chrono Cross and Parasite Eve 2 to North American shores.

154 Comments

  • abang_neo

    Posted Oct 2, 2007 11:39 pm PT

    Hmm I like to make a long comments and stuffs, but I'll just say stop making mobile games or at least don't make stuff that couldn't be played outside Japan (Yes, PE3,I'm looking at you).

  • Akaneiro

    Posted Oct 2, 2007 10:35 pm PT

    The style of games they make would have to make a come back, the western style games being made are action packed like summer blockbuster movies that don't hit the storyline as well as RPG's do; and that's only because when you compare a 8-12 hour game to a 40-60 hour game there's going to be some cuts in how you can tell a story.

    As the tagline says "The RPG maker..." meaning that that's what they do best, don't play project slypheed or DoC, they have to return to what they know will sell rather than trying these new ideas to get the western public to buy them, they have a good domestic market no use loosing them trying to get a foreign one.

    oh and finally... for the person who said Square-enix would probably change platform; while in the past it is true that they left nintendo, they left nintendo only because they believed cartridges were outdated and they couldn't make FFVII on them without it being some big hassle; now I do give you the fact they will most likely port their games over, look at FFXI not much but it's a start, but they might be in more of a MGS type of way where they release a "subsistence" type of game.

    Whatever they do I just hope they don't lose their style of game play and storytelling that I love, if they don't have the great game play and story that I would expect from them I won't buy the game no matter what platform it's on.

  • Azhar85

    Posted Oct 2, 2007 9:57 am PT

    What square-enix must do right now not to change the style of gameplay..but release their games in multiple region once and not to the japanese only.......

  • Azhar85

    Posted Oct 2, 2007 9:49 am PT

    For peolpe outhere who think Square should change their style in making games to suit western styles....i will never ever agree with u all.... because their title will be suck in shooter or other genre except RPG...examples sucking games made by Square in history are Project Slypheed and Dirge Of Cerberus....

  • Nostradennis

    Posted Oct 2, 2007 7:00 am PT

    The financial success of games like Halo3, Bioshock, and Condemned which were tailored to a Western audience and the future financial success of games like Mass Effect, Assassin's Creed, COD4 (Best in show at E3 this year) and RE5 have SE taking notice. They aren't willing to go it alone though. They want publishing allies which to me means they want to limit future potential loses (and profits for that matter) or they're not sure as to what constitutes as a good Western theme type game. I think it's more of the latter.

  • Toney29

    Posted Oct 2, 2007 1:03 am PT

    SquareEnix you want revenue??? THEN RELEASE ALL YOUR DOMESTIC GAMES TO THE REST OF THE WORLD! You Jerk wads...YES games like KH 1 and 2 Final Mix +

  • osxgp

    Posted Oct 2, 2007 12:22 am PT

    Put out some games that aren't remakes..Unless it's FFVII!

  • ROTO_DQ

    Posted Oct 1, 2007 8:44 pm PT

    well,it's a good news for us.and it also means square-enix should make other type games not only jrpg to satisfy us.

  • GhostStalkerX1

    Posted Oct 1, 2007 3:40 pm PT

    Well Square, if you want to see how good your business will rise by porting to 360. Keep an Eye on how well DMC will sell, since its going to 360 now. That will give you a good hint.

  • OU_Munky

    Posted Oct 1, 2007 2:16 pm PT

    The simple solution here people is to go multi-platform with thier biggest titles. With the current Dominance of the 360 in teh US market, it is only a question of when not if we will see Final Fantasy, Kingdom Hearts, and teh likes ported to 360. The Sony fans can cry all they want but it will happen and all the **** in the world will not change a corporations bid to make money. I'm guessing on this round we will see timed exclusives but you can bet your bottom dolllar that FFXIV will be a multiplatform launch. And it will not come as a surprise to anyone who actually pays attention to the markets when FFXIII ports to 360 a few months after release. And to those of you who think they wil not "betray" sony remember that FF was on nintendo before it was on Sony consoles, therefore its not out of character for SE to change platforms.

  • ImperialPanda

    Posted Oct 1, 2007 11:48 am PT

    IMO the discrepancy comes from this:

    "Through these strategic initiatives, our initial goal within a time frame of three to five years is to raise our foreign sales ratio for console/handheld games from its current 50 percent level to approximately 75 percent."

    The second number (50%) given here accounts only for revenue from video game sales. Whereas the first number (20%) was probably overall revenue, which includes revenue from merchandising and licensing.

  • C-Himura

    Posted Oct 1, 2007 9:25 am PT

    Riavian
    Final fantasy sales are very small compared to say halo.

    Mistwalker is doing the us thing and I think square wants to jump on the bandwagon.

    Yeah, and Pokemon Red, Blue and Green are not the games with the most sold copies either (actually, they are). FInal Fantasy is the fourth best selling franchise of all time. Halo (without Halo 3) is 38. That should tell you sales.

    I guess they would need some western type of games though. The thought frightens me though, by judging their non-rpg endeavors, the future of Square-Enix mass appealing to the Western audiences looks bleak if they don't get their act together.

  • Aizou

    Posted Oct 1, 2007 8:49 am PT

    Does this mean Star Ocean 4 will be for the XBox 360 or Wii instead of PS3? Those will bring in more buyers

    I know it's wishful thinking... but dangit, I want SO4 =P

  • jasonharris48

    Posted Oct 1, 2007 8:01 am PT

    Also Riavian Square is not jumping the band wagon because MistWalker is doing so if I can remember Square use to work with EA five years ago to bring projest over seas

  • jasonharris48

    Posted Oct 1, 2007 7:57 am PT

    Riavian Do you know what you are talking about? Thats why Final Fantasy is the fourth biggest game franchise in the world

  • nev70

    Posted Oct 1, 2007 7:50 am PT

    Its no good if square pump out japan orientated games to the west all japanese devs now know both the US and EU market are now bigger than the Japanese , they need to be WESTERN in both the STYLE and GAMEPLAY to make real $$$$ .

  • sniper2k0

    Posted Oct 1, 2007 3:52 am PT

    Getting more $$$ is always good, right? right?

  • Riavian

    Posted Oct 1, 2007 3:05 am PT

    Final fantasy sales are very small compared to say halo.

    Mistwalker is doing the us thing and I think square wants to jump on the bandwagon.

  • IMDLEGEND

    Posted Sep 30, 2007 10:52 pm PT

    This would explain the stronger support for the XBOX 360. Hopefully other companies will follow suit, after all, who doesn't want to make more $$$?

  • Silver_Tip

    Posted Sep 30, 2007 9:33 pm PT

    SquareEnix already has a pretty good reputation in North America thanks to Final Fantasy. Expanding sales and introducing new content shouldn't be too difficult. Hopefully they try to expand beyond consoles and bring some good stuff, like more Final Fantasy, to the PC in the process.

  • IguanaBob

    Posted Sep 30, 2007 5:27 pm PT

    Expand or Die. This is the Master of Orion way, the only way.

  • Dryker

    Posted Sep 30, 2007 3:42 pm PT

    They are already developing for the 360: Infinite Undiscovery and The Last Remnant. Those hoping that more of their "Japan-only" games are released here, State-side, misunderstand what SquareEnix intends to do. They're not just interested in expanding distribution and Marketing, but actually changing the CONTENT of their games to more suit the tastes of non-japanese markets.

  • doughtybenjamin

    Posted Sep 30, 2007 2:06 pm PT

    its about time they started releasing more of there "japan only" games over here!!!!

  • mpeg3s

    Posted Sep 30, 2007 12:10 pm PT

    This means more X360 and PC games.

  • lamprey263

    Posted Sep 30, 2007 12:05 pm PT

    well, developing for the X360 and PC would help, but I doubt they'll do that

  • Jehuty08

    Posted Sep 30, 2007 10:31 am PT

    @sobey01: for sure. if they are gonna do remakes at least do a full remake with current gen graphics and new features etc.

  • sobey01

    Posted Sep 30, 2007 8:36 am PT

    That's really nice but I'll still never see FM5 or any other new games in that series. They'll just keep cramming FF spin-offs down our throats.

  • abadgirl84

    Posted Sep 30, 2007 8:17 am PT

    totally agree,dr3b!

  • geomyr

    Posted Sep 30, 2007 6:19 am PT

    i think that is good for the whole rpg community the more market share the more rpg games.

  • dr3b

    Posted Sep 30, 2007 5:40 am PT

    This can only mean more RPG's, which is good news for me.

  • Icarusmk3

    Posted Sep 30, 2007 3:54 am PT

    I agree with you there supernova_86.

  • Supernova_86

    Posted Sep 30, 2007 2:11 am PT

    If Sqaure Enix wants some of my money, they can remake FF7 for PS3. They can rest assured they will get my money, no problemo.

  • joeyfine

    Posted Sep 29, 2007 8:18 pm PT

    more kingdom hearts and FF games please!!!

  • slasher2119

    Posted Sep 29, 2007 7:51 pm PT

    a fear of androgynous characters is definitely something you might need to have a physician look into...... besides its a FREAKING VIDEO GAME! you are OBVIOUSLY not gonna "throw down" irl. if you play half-life 2, the unrealistic gravity gun and aliens doesnt bother you?! how about star wars: empire at war? "no, i cant play final fantasy 12, vaan could be a guy or a girl and that's waaaaaay too unrealistic...... hold on, my at-ats are assaulting this base...... lol stupid rebels." just think about it a second man........

  • jazilla

    Posted Sep 29, 2007 7:13 pm PT

    Good for them realizing where their market potential is. I just can not get into any of their games. The characters are all way too sexually ambiguous for me. I have no problem with that, I am just not into androgyny. I don't like playing as a character who's backside I could kick if he/she were real. That's the root of the problem. I can't tell if it's a he or a she that I am controlling, and either way, if the met me in a dark alley and had to throw down....they would lose. I like the characters I decide to play as in a game, be ones that I would run from in RL. Does that make sense?

  • rwnummelin

    Posted Sep 29, 2007 7:10 pm PT

    Square didn't backstab anyone. Nintendo backstabbed Sony when they suddenly didn't want their CD add-on for the SNES. Square were working on a game that took more storage than the ROMs could handle. Square complained to Nintendo and they were told to go to hell. Then Nintendo turned to Philips for another failed project, ending in the two worst Zelda games in history.

    But on topic: This is good news for everyone. At least us Europeans. More games for more consoles. Great!

  • XanderZane

    Posted Sep 29, 2007 6:18 pm PT

    This is great news. It means more SE goodness on the XBox 360 and Wii now. I can't wait until next years E3. I'm sure SE will have some nice surprises for us all.

  • MSG-Deathscythe

    Posted Sep 29, 2007 2:59 pm PT

    SE should just shut up and keep on working on those games. why all this talk when they haven't even released anything for the current gen consoles. they should know by now that even though ps3 is the last on the standings right now, it is their games and games like mgs4, gow3, gta4, etc. that will boost ps3 sales.

  • drummer131

    Posted Sep 29, 2007 2:27 pm PT

    all i have to say is if this means more original SE RPGs and/or more remakes/ports, then by all means WOOT!

  • drummer131

    Posted Sep 29, 2007 2:25 pm PT

    all i have to say is if this means more original SE RPGs and/or more remakes/ports, then by all means WOOT!

  • wild_world_girl

    Posted Sep 29, 2007 1:58 pm PT

    Not going to be a tough task - the NA gaming market is ravenous and gaining momentum, and the 'shrinking global economy" has increased many countries' interest in JRPGs and other "unorthodox", only-seen-in-Japan type games as well.

  • Azhar85

    Posted Sep 29, 2007 1:55 pm PT

    to @frostatch_basic

    then...the old stories will repeat again....

  • frostbach_basic

    Posted Sep 29, 2007 12:51 pm PT

    "for those who want FFXIII, didnt SE show at the end of the trailer "For Playstation 3 Only" clarify things. Unless SE backstabs Sony and port it to the 360"

    Well...Square backstabbed nintendo all those years ago...so who knows?

  • Artisticle

    Posted Sep 29, 2007 12:35 pm PT

    This IS a really good idea for SE. Maybe US and Europe will finally get our grubby hands on some of the Japanese exclusive release material in alot of SE games. Like "Final Fight" stuff in FF games and in Kingdom Hearts without having to tear our systems apart and put Mod Chips in. I wil say it may be hard to get a total grasp on US preferences for gaming though, we're quite fickell and have an apt to change out likes and tastes on a whim. But if SE keeps pushing the limits of how they build RPGs I'm sure they'll do fine pushing thier market outside thier borders.

  • chibi-acer

    Posted Sep 29, 2007 10:55 am PT

    It'll be interesting to see where this goes. I'd rather see them simply port more of their titles overseas rather than change their strategy to develop American style games.

  • Agermemnon

    Posted Sep 29, 2007 10:15 am PT

    They will need to make games multiformat to help out with that but it would seem the western games market is changing a little taste wise year after year so maybe they need to look mre at what type of games they produce .

  • LordGamer0001

    Posted Sep 29, 2007 9:57 am PT

    i like this.. more opportunities for different games.

  • Cobalt_Strike

    Posted Sep 29, 2007 8:41 am PT

    Relying on foreign markets would require porting games to the 360 and Wii would it not? Well maybe not, but it certainly wouldn't hurt their cause.

  • Doolum

    Posted Sep 29, 2007 8:38 am PT

    That will be a good move.

  • Slifer2909

    Posted Sep 29, 2007 7:39 am PT

    If Square-enix wants to increase foreign sales and all that, then release the bloody final mix kingdom hearts and international FF games

advertisement

Hot Stories

Newsmakers

Featured Stories

Submit News

Got tips? Send them in!