Square-Enix Confirms Layoffs, Denies Impact on MMOs

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Amid rumors that layoffs had occurred at Square-Enix’s Los Angeles office and how they might impact current MMO games, SE’s Senior Director of Public Relations, Riley Brennan, confirmed yesterday that layoffs did occur, but that customers will not see any negative impact. Brennan emphasized that the decision to lay off some unknown number of employees “will not have any impact on the operations of MMO titles,” and that the upcoming launch of Final Fantasy XIV: A Realm Reborn will not be affected. It’s currently unknown what specific departments lost employees, but Brennan’s assurances seemed to apply only to the MMO departments.

The layoffs seem to corroborate last week’s report about the disastrous original launch of Final Fantasy XIV and its continued financial impact on Square-Enix. Hopefully the upcoming relaunch of Final Fantasy XIV: A Realm Reborn will allow the company to bounce back so that this trend does not continue.

Source: Massively.

Why is the concern mostly for the MMOs? What about their other non-MMO projects?

Service vs product I guess?

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Originally Posted by Del Murder

Why is the concern mostly for the MMOs? What about their other non-MMO projects?

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It looks like the original rumors suggested that the layoffs could impact MMO titles such as Wakfu and FFXIV. I don't know if SE was simply responding to those rumors, or if the layoffs really did occur in an MMO department (or both).

Well, MMO's make a crap ton of money if they are successful. So...

Successful MMO = A crap ton of money

Plus they'd be able to reap the profits of playing online every month. Not to mention expansions and such. If I'm not mistaken, FFXI is the most profitable game in the series so far due to, ya know, being an MMO. Plus they did let down a lot of people with the launch of this game, I imagine making up for it is important for their image.

its to bad they wont affect the MMOs... then maybe they would go back to making good games.

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Originally Posted by Dr. rydrum2112

its to bad they wont affect the MMOs... then maybe they would go back to making good games.

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If it affects FFXIV, no, they won't. The company has already stated that if FFXIV: ARR flops, the company will most likely go under. Thus, jobs for no one, and no games for the fans.

I have a feeling it will. Like people say first impressions are the most important. People will still remember the launch and by the time it comes out people who might be optimistic about it will probably be too busy playing something else at the moment.

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Originally Posted by Depression Moon

I have a feeling it will. Like people say first impressions are the most important. People will still remember the launch and by the time it comes out people who might be optimistic about it will probably be too busy playing something else at the moment.

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You have a feeling ARR will flop?

I don't think ARR will reach the top of the charts in terms of other popular MMOs like WoW or GW2, but I think it will end up turning a profit for SE and will redeem the original FFXIV for most.

If they were from the MMO department and they were related to the LA office, I can only guess that it would have been community support and/or the localisation team. Perhaps given that the number of people playing the MMO has decreased, the requirement for the former has lessened? Not sure really, but every company in the world is laying off staff it seems, so it's not really something that strikes me as unusual given the current climate.

If SE goes under, what would we really be missing in the end?

You're really asking that question at a Final Fantasy forum? Now, now, Neo. No trolling. >=P

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Originally Posted by Loony BoB

You're really asking that question at a Final Fantasy forum? Now, now, Neo. No trolling. >=P

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The hell? Arn't I the only one people here called Neo? XD

And mostly we'd be missing any of the bitchin' Non-FF games they now release. :p

If they ever release it for PS3 it'll turn a profit I'm sure. PS3 owners will be all over an MMO.