They've struggled since the merger to find a corporate identity and like all Japanese developers, the HD generation dropped them in a creative quagmire. Most of the talent is actually still there or collaborating in a freelancer capacity but they need a leader like Sakaguchi who will translate that talent into great games.

Square has always been on the cutting edge of technology and digital art and the advent of optical media (CDs) allowed them to rise above their equally lauded peers and transcend the expectations of what video games could up to that point accomplish. IMHO PC and western developers missed the plot on what they actually did, so I feel like a lot of the games that came out in last gen's ecosystem were operating under pre-PS1 design philosophies.

What I'm getting at is that Square has always been ahead of the curve and they have a long list of titles that will always champion that fact. They have actually published a lot of good games over the last few years, but they need leadership to get back to the dominant powerhouse they once were.