Former Square Enix of America CEO reflects on betting on new IP

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In a hits-driven industry such as video games, investing in new and emerging IP is often considered a financial risk. As budgets rise, so do expectations. While new games like Helldivers 2 and Palworld find fame and success, Immortals of Avenum struggled to the point where maker Ascendant Studios reportedly furloughed most of its staff.

Acquiring an existing franchise’s legacy doesn’t always work either — just look at Embracer’s restructuring efforts. Saber Interactive CEO Matthew Karch points to an "opportunity to make great entertainment at a price that isn't going to kill somebody's bank account" with Warhammer 40,000: Space Marine 2 dropping later this year.

To understand what gaming as a whole is currently experiencing, we sought out an expert who has worked on both established IP and new titles.

We sat down with Mike Fischer, the former CEO of Square Enix of America, to talk about betting on experimental IP and his pivot to working as a professor in Interactive Media at USC. While mass market appeal may be important, no genre is all-encompassing and there's still money to be made in gaming's many niches. That's where Mike's role of broadcasting sound business fundamentals comes in.

As a CEO of the American arm of one of Japan's most celebrated publishers, it didn't take long for Mike Fischer to find that "the biggest cultural differences [were] between the development culture and the publishing marketing culture." From his experience in the industry, most developers weren't business-oriented.

"[A] joke we have is that when a game is successful, it's because it's a great game," he said. "And when a game is a failure, it's because of bad marketing. What I've found is it's most important to understand what the creators' vision is for their game but also what the real market opportunity is. Find a way so that those can work together in harmony and that the game can achieve its full creative