The lights are on
[Update] Joystiq has received word from sources at Square Enix that requested anonymity regarding the depth of job cuts. According to the report, layoffs affect marketing, public relations, accounting, IT, events, and more. President and CEO of Square Enix's US operations Mike Fischer will also be departing the company. Those affected will not all be leaving immediately, with public relations notably staying on through E3. We've reached out to Square Enix for comment.
Following reports that key Square Enix titles fell short of internal expectations, the publisher has today announced "corporate restructuring" that leaves an unknown number of individuals out of work. Game Informer received the following comment from a company representative.
"We can confirm that Square Enix's Los Angeles office has eliminated a number of positions as part of the corporate restructuring announced last week. This is an unfortunate situation and we are offering assistance and severance packages to any employees affected by this, we want to thank them for their hard work and sincerely wish them well in the future."
Game Informer has received a briefing document in Japanese, which carries more detail than its English counterpart. Our internal translation indicates that Square Enix's targets for Sleeping Dogs, Hitman: Absolution, and Tomb Raider (which set franchise sales records) were markedly higher than the actual, already impressive figures. Here are the comparisons:
Sleeping DogsActual: 1.75 million unitsExpected: 2 - 2.5 million units
Hitman: AbsolutionActual: 3.6 million unitsExpected: 4.5 - 5 million units
Tomb RaiderActual: 3.4 million unitsExpected: 5 - 6 million units
All three of these were critically acclaimed and enjoyed by fans, carrying impressive sales numbers (without accounting for exceedingly high anticipated figures). It's hard not to draw a line between the departure of president and CEO Yoichi Wada due to the publisher's poor financial performance and missed sales targets and these layoffs. We are hopeful that the employees that have been impacted by this restructuring find new employment soon.
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Tomb Raider sales were way off mark, but who would honestly expect it to sell that much?
wow they really undershot those numbers all these games sold better than i expected
Those sales number expectations are insane, whoever called those numbers out and got the company on board needs to be let go, so terrible so many of the other employees are suffering because of imbecilic management.
Ohhh Square Enix... You gotta calm down and get realistic. Many gamers' wallet for gaming is drastically changing. The days were we could easily buy 5 new games in a day are gone. Now some gamers play their friends copy of a game, rent a game, or not even play it and watch someone else play it on Youtube. Just don't have your expectations so dang high.
Gah, for three excellent games- that's a shame!
Square Enix is still my favorite developer/publisher, and usually I can look the other way on their...ahem..."eccentricities", but this is insane. These anticipated numbers are enormously high. All of these games are awesome and still did really well. It's sort of ridiculous resigning as CEO based off of the performance of 3 games. I'm severely disappointed.
so they have three insanely high selling game and it failed to meet expectations?...the only person who should have been laid off is whomever was doing their production budgets cus they seriously suck at math...those expectations were out right idiotic
With the sales predictions, I don't think they took into account what other games they were up against around release time. It's not like these were the only games that came out on or around their individual release dates
So many layoffs. And those expectation numbers seem high, especially for Tom Raider being only out a few weeks.
I wish all those affected at Square Enix the best, and I hope they find new jobs quickly.
Fine by me. Whatever it takes to bring the company back.
Good luck to the unemployed! Hopefully Square Enix will have more reasonable expectations in mind when making games in the future.
This is sad, all those 3 games are great. I wish them the best.
Here's hoping those laid off can find alternative positions soon, such as at Kojima's new LA office.
As I said in my previous posts, those sales figures were wildly optimistic. All 3 games reviewed and sold well and yet they are all off by almost a million or more than a million each.