Yoichi Wada
Yoichi Wada, the president of Square Enix, has said that the publisher needs to “go beyond traditional Square Enix."
Specifically, he was referring to mergers and acquisitions. Speaking at the Reuters Global Technology, Media and Telecoms Summit in Tokyo, Wada said, "Economies of scale and breadth of scope are getting important. It may be a business alliance or it may be us taking a stake in others, but we need to go beyond traditional Square Enix."
Wada continued, "We face competition not only from Japanese videogame companies but from game companies worldwide. We also see some new players from outside the videogame industry coming in."
Expansion is high up Square's agenda. Asked if Square is currently in talks, Wada said, "That's part of a CEO's job. That's part of our routine work."
The issue has been on his mind for a while now. Speaking in February, he pointed to acquisitions as key to Square's future.
While Wada did not outline an investment budget for Square, he did state that the company has the option to issue around 290 million additional shares without approval. "I'm not suggesting we are going to use up all that. But we have a capacity to do that."
Square isn't the only company that acquisition is important to, according to Wada. “I think every company is undergoing negotiations. We have dinners every night”, he said.
Of course, you don't have to look too far to see Wada's words vindicated. Electronic Arts extended its offer to buy Take-Two yesterday. Then, of course, there's the ongoing merger between Activision and Vivendi.
Since Square has such a strong foothold in the Japanese market and hopes to push simultaneous worldwide game releases, it seems likely that the publisher has its eye on the Western market. Feel free to post your tips for Square acquisitions in the Forum.
Source: Reuters
Specifically, he was referring to mergers and acquisitions. Speaking at the Reuters Global Technology, Media and Telecoms Summit in Tokyo, Wada said, "Economies of scale and breadth of scope are getting important. It may be a business alliance or it may be us taking a stake in others, but we need to go beyond traditional Square Enix."
Wada continued, "We face competition not only from Japanese videogame companies but from game companies worldwide. We also see some new players from outside the videogame industry coming in."
Expansion is high up Square's agenda. Asked if Square is currently in talks, Wada said, "That's part of a CEO's job. That's part of our routine work."
The issue has been on his mind for a while now. Speaking in February, he pointed to acquisitions as key to Square's future.
While Wada did not outline an investment budget for Square, he did state that the company has the option to issue around 290 million additional shares without approval. "I'm not suggesting we are going to use up all that. But we have a capacity to do that."
Square isn't the only company that acquisition is important to, according to Wada. “I think every company is undergoing negotiations. We have dinners every night”, he said.
Of course, you don't have to look too far to see Wada's words vindicated. Electronic Arts extended its offer to buy Take-Two yesterday. Then, of course, there's the ongoing merger between Activision and Vivendi.
Since Square has such a strong foothold in the Japanese market and hopes to push simultaneous worldwide game releases, it seems likely that the publisher has its eye on the Western market. Feel free to post your tips for Square acquisitions in the Forum.
Source: Reuters
Read More Like This
Comments
SuperSaiyan4 20 May 2008 10:59
1/6
You know on one hand this guy talks sense on the other hand he is rather stupid, there are millions of Xbox 360 owners out there and many like myself that love JRPG's...Now there is a very good chance of SE making s**t loads of money if they just brought out Final Fantasy (not the online one) for the 360 as well.
Joji 20 May 2008 13:58
2/6
Its great that Square are saying this, and following in the wake of Sega and Capcom joint and outsourcing alliances, in and outside of japan, it makes a lot of sense.
There's plenty of money to be made by Square Enix on 360, but they fail to exploit those huge global 360 userbase, that made GTA4 such a hit. While Last Remnant is a step in the right direction, they have taken/waited too long, that even Lost Odyssey and Mistwalker beat them to the punch. We are beginning to see, not only Square can give us what we need on 360.
Get real Square, waiting on PS3 to make you money is next to suicide. Square need to learn to not take so long on their games too. Square, you also need to stop giving Sony proper FF games, and everyone else cast/spin offs with half baked hearts.
Who will Square look to possibly make an alliance with? Whoever they are, they'll be very lucky.
Come on, Square. I want that Front Mission Online on 360 , with sweet online play. If you want to turn your fortunes around, there might be a good place to start (especially when its been out on PC for a while in japan). Would be nice alternative to FFXI too.
Indeed, a break from so many rpgs might also be a good idea, so perhaps to some action games might be an idea (not like Dirge, please). Square have not really made any of these sense the PS1 days. Perhaps its here where some outsourcing might help.
There's plenty of money to be made by Square Enix on 360, but they fail to exploit those huge global 360 userbase, that made GTA4 such a hit. While Last Remnant is a step in the right direction, they have taken/waited too long, that even Lost Odyssey and Mistwalker beat them to the punch. We are beginning to see, not only Square can give us what we need on 360.
Get real Square, waiting on PS3 to make you money is next to suicide. Square need to learn to not take so long on their games too. Square, you also need to stop giving Sony proper FF games, and everyone else cast/spin offs with half baked hearts.
Who will Square look to possibly make an alliance with? Whoever they are, they'll be very lucky.
Come on, Square. I want that Front Mission Online on 360 , with sweet online play. If you want to turn your fortunes around, there might be a good place to start (especially when its been out on PC for a while in japan). Would be nice alternative to FFXI too.
Indeed, a break from so many rpgs might also be a good idea, so perhaps to some action games might be an idea (not like Dirge, please). Square have not really made any of these sense the PS1 days. Perhaps its here where some outsourcing might help.
more comments below our sponsor's message
OptimusP 21 May 2008 16:06
3/6
SuperSaiyan4 wrote:
You know on one hand this guy talks sense on the other hand he is rather stupid, there are millions of Xbox 360 owners out there and many like myself that love JRPG's...Now there is a very good chance of SE making s**t loads of money if they just brought out Final Fantasy (not the online one) for the 360 as well.
Xbox360 fans don't like traditional games, only casual shooters and watered down D&D simulators who also have guns for some reason...(not trolling, challenging definitions)
It's like the discussion that the Wii is the wrong choice of platform for Mad City, no it isn't. It would bomb even harder on the Xbox360 and PS3 because of it freaky nature. See sales of Killer 7, Viewtifull Joe, Okami and last-gen quirky SEGA-games.
Musashi 21 May 2008 21:43
4/6
I agree. While it is all well and good to invest in Western software houses, there is a tremendous market in the West that they are ignoring with the 360, regardless of whether the game would do better on the PS3 or not. I aplaud Infinite Undiscovery and The Last Remnant, but Square should go fully multi-platform with all releases across PS3 and 360 in order to maximize their return. It appears that there is a big market for games on all 3 consoles this generation irrespective of who ultimately wins the console war and Square is in the business of making money.
Joji 21 May 2008 23:01
5/6
Its amazing its taken Square this long to crawl out of Sony's shadow, grow some balls, and admit they need to spread their games more.
While Square hit it big under Sony's flag, they have majorly failed to spread that love (even going back as far as the GC/Xbox gen), and I really don't know why that is. Sure, I know Sony have shares in them , but even that isn't enough of a reason, as it wasn't always this way, when you are in business to make money. The japanese and their loyalty, eh?
Sakaguchi's Mistwalker have plugged that valuable gap that Square could have easily sown up. Its a good thing MS done that deal with Sakaguchi for some games on 360, as we've learned that we are all richer, for having Lost Odyssey, doing some great things and breaking out some original stuff.
If 360 owners get some good rpgs (or japanese games in general) as an option, they might broaden their tastes beyond FPS games. Sqaure need to learn from Capcom, and fast. They still have a chance though, but they have to venture into unknown territory and break the FF chains.
While Square hit it big under Sony's flag, they have majorly failed to spread that love (even going back as far as the GC/Xbox gen), and I really don't know why that is. Sure, I know Sony have shares in them , but even that isn't enough of a reason, as it wasn't always this way, when you are in business to make money. The japanese and their loyalty, eh?
Sakaguchi's Mistwalker have plugged that valuable gap that Square could have easily sown up. Its a good thing MS done that deal with Sakaguchi for some games on 360, as we've learned that we are all richer, for having Lost Odyssey, doing some great things and breaking out some original stuff.
If 360 owners get some good rpgs (or japanese games in general) as an option, they might broaden their tastes beyond FPS games. Sqaure need to learn from Capcom, and fast. They still have a chance though, but they have to venture into unknown territory and break the FF chains.
Musashi 21 May 2008 23:26
6/6
Another avenue that could be taken by SE would involve taking old games and releasing them on LIVE as well as the other online services.