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I think it's a bit of an overreaction, but the core idea is not incorrect. Is there a future for home console RPGs? Of course there is. But, maybe they aren't going to be big system sellers like they used to be. I can definitely see a future where they have to trim down the budgets for these things a bit - I think a main Final Fantasy is always going to sell a couple of million copies, but it very might might only sell a couple of million. In days gone by, you might expect significantly more than that.
So if that turns out to be the case and they have any sense, they'll make slightly less ambitious games on a slightly smaller budget and turn them around a bit faster. It could actually being exactly what the franchise needs, somewhere around the release of XII SE seemed to decide that Final Fantasy needed to be the most spectacular, cutting edge RPG franchise out there, and every main entry since then has found itself in development hell. But we don't need a franchise that's new and inventive and on the cutting technical edge every single game - we just need a good RPG. If they find themselves not doing the numbers to maintain the bloated budgets, they may have to refocus their attentions on a more realistic goal, which could actually be beneficial.
Of course, this relies on the execs being smart enough not to just can the series on a knee-jerk reaction. I can't say I'm mega confident.
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