Square Enix Posts "Extraordinary Losses"


Square Enix posted a $16 million loss for Q1 2011, posting an even more bleak forecast for the rest of the year. The tsunami that hit Japan earlier this year is a major player in the report, coupled with the ongoing development of Final Fantasy XIV while the servers remain free of charge, and the lackluster sales of certain Square Enix properties.

Due to the recording of extraordinary losses, forecasted net income (loss) is revised for fiscal year.

The report also notes the cancellation of some projects, none are mentioned specifically. According to Wikipedia, Square’s last cancellation was in March over a 3rd person shooter called Gun Loco, a 360 exclusive. Square Enix has several titles still to release this year, including Wakfu, Dungeon Siege 3, Dead Island, Deus Ex, and a few others that should bolster their sales.

Square Enix Posts “Extraordinary Losses”


Square Enix posted a $16 million loss for Q1 2011, posting an even more bleak forecast for the rest of the year. The tsunami that hit Japan earlier this year is a major player in the report, coupled with the ongoing development of Final Fantasy XIV while the servers remain free of charge, and the lackluster sales of certain Square Enix properties.

Due to the recording of extraordinary losses, forecasted net income (loss) is revised for fiscal year.

The report also notes the cancellation of some projects, none are mentioned specifically. According to Wikipedia, Square’s last cancellation was in March over a 3rd person shooter called Gun Loco, a 360 exclusive. Square Enix has several titles still to release this year, including Wakfu, Dungeon Siege 3, Dead Island, Deus Ex, and a few others that should bolster their sales.

Killing World of Warcraft: Death By Expansion Pack


Ever since Blizzard launched World of Warcraft in 2004 and the game propelled itself to top dog worldwide, every schmuck and his sister have been throwing in their ideas as to what will “kill” the behemoth, or at least usurp its player base. Over the years, we’ve seen countless titles riding in on a white horse, proclaiming themselves to be sent by God to destroy World of Warcraft, and then we quickly find out that the horse is cardboard and the armor is actually painted Styrofoam. On the other side of the spectrum, people like myself realized early on that the only entity capable of destroying World of Warcraft, was Blizzard themselves.

In a conference call just a couple days ago, Blizzard revealed that the population for WoW has dropped to 11.4 million, down from the peak of 12 million. Blizzard attributed this figure to the normal departure of players that occurs after the release of an expansion, when the more hardcore players complete all the content early on and lapse back into the state of “I’ve done everything and now I am bored.” In order to combat this in the future, Blizzard also announced plans to expedite expansion pack releases. Currently, the World of Warcraft expansion rate is approximately two years, so we’ll see how far Blizzard plans on shortening development time. One year in between releases?

I suppose the question of the day is, will this have the direct opposite effect? And this relies on how Blizzard delivers the expansions. For example, if the expansion packs wind up being buggy, unpolished content rushed out for thirty bucks just to say “hey, we’ve got something. Stick with us and we’ll fix it over the next few months,” then you’ll see players getting sick of the system fairly quickly. The same holds true if Blizzard were to turn around and say, “listen guys, our normal free content has to go because we’re too busy working on content for expansions. We’ll still release patches and fix bugs for free, but if you want new raids/dungeons, you’ll have to wait for the expac.”

And yes, I write this article from the perspective of one of those Everquest nerds that bought into the expansion every six months program, but you do have to remember that these are two entirely separate communities with different expectations. If more than six months goes by without an Everquest expansion announced, I start getting the shakes that Sony Online Entertainment is going to announce bankruptcy. Furthermore, the Everquest expansions have been great in the sense that there are so many opportunities to get them on sale somewhere that if you can wait a couple months, you can get that forty dollar expansion for about ten bucks.

As my own two cents, what Blizzard should consider is alternating between one paid and one free expansion each year. This way they lure in past players with free content, while at the same time buttering them up to be more willing to buy a paid expansion. It’s the same way Blizzard gets people to buy mounts for $25, it is the “sure you can have that mount for free (in-game gold notwithstanding) but what about that mount. That mount is, like, a million times sexier than your mount.

Of course, that’s just my opinion, I could be wrong.

Lineage Shutting Down In NA: Pick Up Your Package


[Update: 5/18] I’ve been seeing a lot of searches pointing to this page by players who want to know if their accounts will work on the Korean version when the North American servers shut down. Simple answer is no, your account will not work on the Korean version.]

Writing this article, I’m reminded of a few random comments placed on the last NCsoft article I wrote (about how NCsoft’s subscription games were performing better than their non-subscription games). Lineage entered the scene back in 1998, a year after Ultima Online, and with it brought the little game studio known as NCsoft to an eagerly awaiting pile of money, spawning a sequel as well as shuttling NCsoft into one of the major players nowadays in the MMO industry. Ironically, the designer of Lineage (Jake Song) had previously worked on NEXUS, for Nexon.

Lineage is still going strong in Korea, some unknown number under one million according to Wikipedia, but over here in the west the game just isn’t doing well. Not well enough to maintain profitability anyway. Today, NCsoft announced that the western service for Lineage will be shut off this June 29th. While there are no updates planned, the article does mention ruleset changes and in-game events planned.

Information on compensation is already available. Unused time will be refunded, and any player with an active subscription during 2011 will receive:

  • Lineage II activation code and two months game time, as well as some free items.
  • Aion activation code plus collector’s upgrade, and two months free game time, as well as free items.
  • Guild Wars activation code.
  • City of Heroes activation code and two booster packs.
It’s always sad to see a game go, especially knowing that it is still available (just not in your region). For what it’s worth, Lineage’s western counterpart lived a full life, and died a ripe old age of thirteen years (that’s 91 in MMO years)

WoW: Microtransactions Make Up For Lost Subscriptions


Well, it’s May, and that can only mean Q1 financial are up, and there are many calls to be made. Who better to run through for this article than Blizzard? I mean, they’re name is on the banner image.

First, the bad news. The subscription numbers for World of Warcraft have dropped back to pre-Cataclysm 11.4 million. This has been attributed to the speed at which players are completing Cataclysm’s content, which is much faster than previous (Burning Crusade, Wrath of the Lich King) expansion packs. On the other hand, Blizzard still has 11.4 million paying customers, and that remains pretty impressive.

The drop in players is also likely due to the release of Rift. As in Age of Conan and Warhammer Online, Blizzard has noted in the past that competing MMOs cause a sharp decline in users, followed by a slow trickle as they calmly return with their heads down, hoping you’d forgotten about the time they smashed the floor lamp and walked out the door, claiming they’d never come back again.

On the other hand, World of Warcraft has become more profitable. If the two don’t add up, consider Blizzard’s increasing sale of microtransaction pets and mounts.

You can read Joystiq’s article here: http://wow.joystiq.com/2011/05/09/world-of-warcraft-dips-to-a-mere-11-4-million-subscribers/

PSN Service Aiming For May 31st.


At this juncture, I’m just waiting for Sony to pull a card from Duke Nukem Forever and just label the PSN service as being restored “when it’s done.” To those of us who do a lot of gaming on our Playstation 3, or to PC users who subscribed to one or more game on Sony’s Station service, it may feel like forever ago that the Playstation Network and Sony Online Entertainment services went down. The PSN has been down for almost twenty days, while Station service was pulled one week ago.

According to Sony, the service is aimed for restoration by May 31st, a date that does not specifically include the Station service. It is worth noting that this is “full service,” and that Sony has expressed intent on restoring partial service (online gaming, store) as soon as last week, so you may see bits and pieces of the PSN coming up before the end of the month.

You can read the Eurogamer announcement here: http://www.eurogamer.net/articles/2011-05-09-sony-psn-restoration-targets-end-of-may

More on Sony as it appears.

City of Heroes Global: Sooner Than Expected


Back in March, we learned the NCsoft was planning on merging the world of City of Heroes, to allow interaction between North American and European accounts. Rather than merging servers, the services themselves were to be merged, with players given access to both services as one grand list. In the original announcement NCsoft praised the move as allowing for more interaction, as well as equality in updates and functionality.

The good news just keeps coming, as the City of Heroes team announced today that the service is coming sooner than expected. Originally estimated “by the end of summer,” the service will be merged next week, on the 10th. Players of the European service are expected to read the Frequently Asked Questions, as their login details may change as a result of the merger.

You can read the announcement here: http://www.cityofheroes.com/news/news_archive/global_server_access_is_nigh.html

The FAQ can be read here: http://www.cityofheroes.com/news/news_archive/one_game_one_global_server_acc.html

Rift 7-Day Trial: Alienware/Friend Referral


Wanted to try out Rift, but didn’t know anyone who owned the game? Missed the ally weekends? Well do I have good news for you: Alienware is giving away keys for seven day trials to Rift, and you can get one.

Just head over to http://www.alienwarearena.com/giveaway/rift/, and create an Alienware account to get your key. Follow the instructions, and you’ll be all set up to start your seven day trial.

Alternatively, if you didn’t want to sign up for an Alienware account, you are welcome to use my referral link: Here.

My MMO Is Not A Car (Please Stop Comparing Them)


I read an interesting conversation about World of Warcraft “clones” (because I can’t say no to a topic I know will leave me steaming), someone brought up cars, and why no one refers to today’s cars as “Model T clones,” or “Ford clones” because Ford made the first commercially viable automobile. This got me thinking, and I found that cars do get compared just as much as MMOs do. Not all the way back to the Model T, but to one another, as “clones.”

Automobiles are, for the most part, structurally similar. They contain your basic engine, headlights, dashboard, steering wheel, four wheels, etc. Compared to an MMO, these would be the systems that make the game not unique, but are rather required simply to maintain functionality. Where vehicles start to branch out starts to come into effect when looking at the casing (graphics), handling (controls), speed (performance), reliability (long term viability), and other perks and pieces. For example, my Kia Rio looks a bit like my friend’s Honda, but while my car carries Sirius Satellite Radio, his car has fancy things like anti-lock breaks and electric windows.

What you end up with are automobile companies that are famous for one thing or another, each with a line of vehicles that are easily distinguished from one another from a visual and statistical perspective. For example, most minivans look alike, but when you look at them closely, you start to see the distinguishing features.

So perhaps the car analogy does fit well, but the same applies to any line of products, and I imagine I would see similar conversations going on cars if I frequented those forums the same way I do for MMOs.

Blizzard: $800,000 To Make-A-Wish


With all the talk over the Japanese relief aid, it’s easy to forget that MMO developers are still doing charity for other purposes. Late last year, Blizzard introduced the Moonkin Hatchling, a $10 cosmetic pet selling with 50% of the proceeds being donated to Make A Wish. Blizzard also worked with Make A Wish to bring two kids to their headquarters to visit and see what the development team does on its daily routines.

According to Gamasutra, Blizzard has released their figures: $800,000 donated to Make A Wish. Between now and July 31st, Blizzard has added yet another pet, in which 100% of the proceeds will be donated to the American Red Cross efforts in Japan.

You can buy the pet here.