Square Enix is in a lot more trouble than we think...
Something truly INSANE happened with the release of Visions of Mana - a development that’s unlike anything we've seen in a bit. Just one day after the game's release, its developer, Ouka Studios, was abruptly gutted by its parent company, NetEase Games, and is now set to be shut down.
This situation is unbelievable, to say the least, and raises a ton of questions about the decisions being made behind the scenes...
Being someone who's worked in the game industry previously, I've seen how harsh this area of entertainment can be... But I've never seen it this crazy.
According to a report from Bloomberg’s Takashi Mizuki, Ouka Studios, based in Tokyo, has seen nearly all its employees let go, with only a handful retained to oversee the final rollout of the game. The studio's closure comes just four years after it was established, making the decision even more wild, considering the whole immediately following the launch of Visions of Mana thing... It gives us insight as to how troubling the situation really is inside Square Enix. Just earlier this year in April 2024, Square announced they were taking a $140 million hit on 'Content Abandonment Losses', and this move seems in line with even more cuts moving forward.
A Mystery Surrounding Ouka Studios' Sudden Demise
The news broke without any prior notice or conversation about why it happened. Visions of Mana, published by Square Enix, was a game that had garnered quite a bit of interest and anticipation from the JRPG community - and a game that I personally had been super pumped about. Yet, without giving it even a chance to prove its worth in the market, Ouka Studios is... effectively being disbanded entirely.
NetEase's response to queries about this drastic move was vague and unhelpful, offering only a standard PR statement:
This explanation is... incredibly weak. Especially when they haven't even had time to assess the game's performance. While this move isn't entirely unheard of in the game industry, it is rare, and gives insight to more trouble behind the scenes. Are the pre-order numbers so bad that they had to make such a drastic decision? Is there more to the story than meets the eye? Is Square Enix really screwed??
An Ominous Trend or a Strategic Shift?
This swift move to shut down Ouka Studios reflects broader concerns within NetEase. According to Mizuki, the closure could be tied to stagnating investments in Japanese studios. NetEase has been exploring various markets, investing in companies like Yakuza series creator Nagoshi Studio, Grasshopper Manufacture, and GPT Track 50 Studio, all while seeing recent success with titles like Black Myth: Wukong.
It’s possible that the success of Black Myth: Wukong is prompting NetEase to reallocate resources, focusing more on their own homegrown productions in China rather than continuing to invest in external ventures. This could be a strategy to capitalize on the burgeoning interest in high-quality single-player experiences that Black Myth: Wukong seems to be opening up within the Chinese market.
What's Next for Visions of Mana?
The announcement of Ouka Studios' closure comes at a time when there is still so much ambiguity about the future of Visions of Mana. As of now, the game is left in limbo, with only a skeleton crew remaining to ensure its release is completed. The studio was also reportedly working on two other titles: a new style battle game and a cooperative action game based on an original IP. With the studio now being reduced to a fraction of its original capacity, the fate of these projects is also uncertain... So I wouldn't hold my breath of them seeing the light of day.
It’s hard for anyone to grasp why NetEase would gut the studio to this extent. Why keep it barely alive with a skeleton crew, especially when there are multiple games still in development? This decision doesn’t foster a healthy work environment; those who remain are likely demoralized, knowing they'll lose their jobs once the final tasks are completed.
How depressing...
A Strange and Uncertain Future
The situation surrounding Visions of Mana is a strange one, to say the least. With a studio shut down just one day after its game release, it's hard to predict what will happen next. Was this a calculated financial decision by NetEase, or is there more going on behind the scenes? For now, it seems we can only wait/hope for more clarity about the future of Visions of Mana and its now soon-to-be-defunct developer, Ouka Studios.
As it stands, this story is one of the oddest in recent gaming history, and many fans and industry insiders will be watching closely to see what happens next over there.
~Smash