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this post was submitted on 27 May 2024
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SQEX did have significant AA-sized development for a long while, although potentially less going forward until their flagship rights itself (or they develop a new one). It's less risky, and the payoff can still end up highly successful like Life is Strange or Octopath Traveler.
I guess the silver lining for them here is that FF16 had much better management than 13 and 15. It would have been a real disaster if 16 went into the budget overruns those two games did. Being hitched to a low-market-share platform and being released in a crazy year for gaming was also bad luck. Granted, FF16 and Rebirth not being good enough to move PS5 units is its own problem.
Consoles shouldn't tie their success to a single game. Nintendo, the creators of such model, ditched it almost immediately. After the Famicom. Volume of games + convenience is what move consoles, not a single game. Exclusives have diminishing returns and at the beginning of console sales cycle they're more likely to hurt the game.