Square Enix President and CEO Yoichi Wada provided some insight and opinions on the Japanese videogame market in a recent interview with Edge-Online.

Wada, who is also Chairman of Japan’s Computer Entertainment Supplier’s Association (CESA), a trade organization designed to promote interactive entertainment, was queried on how piracy is affecting Japanese game makers:

Piracy does a lot of damage, but within the Asian region the majority of damage comes from outside of Japan – not including the Nintendo DS. The R4 continues to inflict tremendous damage to our business. So in tandem with Nintendo, we have brought the issue to court. And we have been able to reach a certain degree of success from the court rulings.

When asked why Western games appear to be shunned by Japanese gamers, Wada answered:

Well, actually, I’ve found the person that is prejudiced is actually the retailer and not the actual players. The retailers have a prejudice against overseas titles, and they won’t procure them.

Wada was asked for his take on a comment from Capcom’s Keiji Inafune that Japan’s game industry is finished:

To say something so extreme is surprising. I’m surprised Capcom allowed Inafune to say that at TGS. My message by proxy for the Japanese developers who would have heard such a discouraging message is that if they are willing today, then they definitely have the capability to change and face tomorrow.

Head over to Edge for the full article, which also details what’s next on Wada’s games-to-be-played list and the possibility of using non-Japanese developers on future Square Enix titles.

A class action lawsuit has been brought against Square Enix of America alleging unfair business practices, false advertising and unjust enrichment with regard to their long running MMORPG Final Fantasy XI.

In the suit, lead plaintiff Esther Leong of San Francisco claims that Square Enix deceived more than 100,000 customers about the game's monthly fees, penalties and restrictions. The suit seeks damages of $5 million. The nasty business which Leong charges that Square Enix engaged in includes:

• Licensing of online game software disguised as a sale
• Monthly fees to play the game
• Penalties for late payment of fees
• Interest charges for late payment of fees
• Charges while the user's acccount is suspended
• Termination of right to play for late payment of fees
• User restrictions and conditions related to the game
• Termination of game data for late payment of fees

Unfortunately, specific details of how Square Enix allegedly screwed its customers are not specified in the complaint. 1UP points out that the FFXI website lists a $12.95 monthly fee to play

DOCUMENT DUMP: Grab a copy of the lawsuit here.

-Doug Buffone, Entertainment Consumers Association intern

Via: Courthouse News Service

Pirating games is one thing and those who engage in the practice assume all of the risks involved, legal and otherwise.

But The Guardian's Keith Stuart reports that, earlier this month, Square Enix sicced its lawyers on a small band of rabid Chrono Trigger fans, serving them with a menacing cease and desist order.

It seems that a group of homebrew types spent four years (!) modding a sequel which they dubbed Chrono Trigger: Crimson Echoes. Talk about a labor of love. As Stuart reports, the group use a ROM hack to mod the original source code:

If Square Enix had allowed the game to be released, the commercial impact would have been infinitesimal. It's being released as an IPS patch, not a complete Rom image; and if you're not sure what I'm talking about, that's the point – getting these things to run is for the homebrew community only.

As Stuart points out, some fan projects (Counter-Strike, for example) have turned into actual commercial games. And the video game industry is increasingly touting the idea of user-generated content to market certain games. But the message inherent in Square Enix's slap at its adoring, hardcore fans is of an entirely different nature. Stuart writes:

Think of the marketing benefits of embracing this passion, of inviting the creators to port the project over to the DS or on to WiiWare. It would be a radical departure from standard tactics but it would surely be more useful and forward-thinking than kicking the lawyers into action. How about a new mantra: embrace and assist?

Two more video game publishers have pulled their Japanese employees out of the upcoming E3 Expo in Los Angeles due to concerns over swine flu.

Develop reports that Square Enix and Koei join Capcom in withholding Japanese employees from the highly-anticipated show:

Square Enix has cancelled plans for its Kingdom Hearts team to attend the show, whilst Koei has confirmed that an unspecified number of its Japanese employees will not be travelling to the event...

However, like Capcom, both publishers will be represented at E3 by U.S. and European staffers. According to Develop, neither Sony nor Nintendo plan to withhold employees due to swine flu.

AFP reported this morning that there are 281 confirmed cases in Japan, although most are mild. There have been no deaths attributed to the virus in Japan so far and Japanese Prime Minister Taro Aso urged the public to be calm.

Via: gamebizblog

With Japanese game publishers losing market share to their Western counterparts, Kotaku reports that Square Enix chief Yoichi Wada has put forth the idea of a "Japan alliance".

From the report:

To remain competitive, Wada says, "Therefore, we should consider some sort of 'Japan Alliance'." More medium to small-sized companies will need to realign — case in point, Tecmo and Koei. "Individuality is important," Wada adds. "It's not forcing everything into a single corporate brand. The ideal is a holding company under which several companies and brands can hang."