Square Enix recently revealed that price protection and back-end rebates cut into the success of games like Tomb Raider and Hitman: Absolution. As such, the company will increase its development for mobile devices and will put more emphasis on regional markets rather than hoping for global blockbuster products.

“We will continue to invest in flagship titles that showcase our technological prowess, pursuing high-end game quality, and which can earn profits on a global basis,” Matsuda said, hinting that the company will reveal more on its strategy at E3. “That said, we cannot reasonably finance this direction for every single title, and we have to think about our entire product portfolio.

“Our strategy of selling AAA titles of 10 IPs around the globe has implicitly assumed Hollywood-style cinematic major games centered on single-player experiences. Going forward, I think it is necessary to review the definition of ‘AAA Title’, and we need to pursue a new type of blockbuster title, in addition to the conventional type of blockbusters.”

Source: Square-Enix.com