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The Extra 10 Percent: XSEED Succeeds in the Age of Digital Distribution

Plus: XSEED announces three new games for Steam, including Little King's Story.

Article by Kat Bailey, .

XSEED was never going to get rich off its offerings. Founded back in 2004, they focused on the Japanese games that had been neglected by other publishers. Games like Little King's Story and Retro Game Challenge brought them a fanbase, but comparatively modest returns.

"Ten years ago, we were either barely breaking even or operating at a loss," XSEED's executive vice president Ken Berry told me. "I said, 'If we could just get 10 percent more in sales, we would be fine.' Now we have them."

XSEED can thank the PlayStation Store, Nintendo's eShop, and digital platforms like Steam for the extra exposure. Though they aren't quite the wild frontiers that they used to be - Steam in particular has been flooded with the sort of niche anime offerings that XSEED has specialized in for years - they still offer smaller publishers a greater degree of visibility that they might have had in traditional outlets. For XSEED, that extra bit of visibility has been very helpful.

The Legend of Heroes: Trails in the Sky

XSEED's online presence stretches back to at least 2009, when they released Half-Minute Hero on the PlayStation Store. They followed up Half-Minute Hero with Ys Seven and Ys: Oath in Felghana in 2010, The Legend of Heroes: Trails in the Sky in 2011, and a handful of other games. Oath in Felghana arrived on Steam in early 2012, and while it wasn't the first JRPG on the service, it did its part to help break the seal. Final Fantasy VII arrived the following year, then the floodgates really opened in 2014.

The Legend of Heroes: Trails in the Sky is one example of a game that has proven to be a gift that keeps on giving for XSEED. Originally released on the PlayStation Portable, which was a dead to dying platform in 2011, it earned a following thanks to a vocal group of Japanese RPG fans. As a PlayStation Store release, it became available on the PlayStation Vita, putting it squarely in the crosshairs of the JRPG fans who came to comprise its most vocal fanbase. Finally, it was released again on Steam in 2014. What might have been a one and done for XSEED instead managed to jump to two more platforms with little in the way of additional overhead.

These additional revenue streams have done their part to boost XSEED. Berry told me that the past two years have been XSEED's best ever, with Story of Seasons for the Nintendo 3DS, available both via retail and the eShop, being XSEED's fastest game to 100,000 units sold - no small feat for such a niche game.

Berry is only sad that former XSEED president Jun Iwasaki, who helped to found the company alongside Berry and others in 2004, isn't around to see XSEED's success for himself. Iwasaki departed for GungHo Online Entertainment in 2012. Even from a distance, though, he's probably happy to know that his original startup is doing just fine.

Doubling Down

In light of its succcess with digital distribution, XSEED is doubling down on Steam. Today they announced that they will be making three more games available on Windows PC: Senran Kagura Shinovi Versus, Xanadu Next, and Little King's Story.

Of them all, Little King's Story is probably the most intriguing. Originally released on the Wii back in 2008, it garnered positive reviews but modest sales. The original game was billed as "real-time strategy life simulation RPG," tasking the main character with building up a kingdom while questing, taking on bounties, and conquering other kingdoms (the little king is also a little warlord, it seems). Its unique concept has helped it remain popular with a certain segment of gamers, but with the Wii now long gone, not many have had a chance to play it (the Vita version was... not that great). Hopefully a Steam release will get it back into the public eye.

XSEED's other two planned releases for Steam encompass gaming's past and present. Shinovi Versus is the third game in the Senran Kagura series, which is basically a cel-shaded Dynasty Warriors game loaded with lurid panty shots. Originally released in 2014 for the Vita, it appears set for a nice graphical bump in getting ported to PC. Xanadu Next, meanwhile, is a spinoff of 1985's Dragon Slayer II: Xanadu, having been released for the PC and the N-Gage (!) in 2005. It still looks pretty good for a game released a decade ago. (Note: It was not released originally on the N-Gage as was first noted).

With these three released, XSEED will be added quite a bit more diversity to their existing Steam catalogue. To this point, they've mostly focused on Ys releases on the platform, with Trails in the Sky and May's Akiba's Trip: Undead & Undressed being the lone exceptions. As time goes on, that catalogue figures to keep growing. XSEED, it seems, has carved out a very nice niche for itself in the digital age.

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Comments 15

  • Avatar for SatelliteOfLove #1 SatelliteOfLove 2 years ago
    XSEED had a rough time of it taking on the Falcom Beast. Ys games were a cinch, but them phone book scripts of Trails of that scared off bigger localizers always proved a pain from a workload perspective vs popping out actiony games.

    Still, 3 Trails in approximately a year? Can I get a "Hell yeah" in here?

    Very excited for XN; I heard someone who recently played it name-drop "Vagrant Story" so I'm naturally all hot 'n bothered for that.

    LKS was one of those games that seemed to be shaded out by the forest of evergreen Nintendo juggernauts on that system (I myself never got around to getting it, though I had it wishlisted during a time my Wii had Xenoblade in it and nothing else). Good stuff!

    "Xanadu Next, meanwhile, is a spinoff of 1985's Dragon Slayer II: Xanadu, having originally been released for the N-Gage (!) in 2005. It received a PC port not long after, and it still looks pretty good for a game released a decade ago."

    I'm almost sure that was PC first (this is Falcom after all) and that n-gage first snippet was from some wrong article. I think that's how it was? I think?Edited October 2015 by SatelliteOfLove
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  • Avatar for Kat.Bailey #2 Kat.Bailey 2 years ago
    @SatelliteOfLove PC version is listed as October 2005 and the N-Gage version is listed as June. Gamespot reviewed the N-Gage version in August of that year: http://www.gamespot.com/reviews/xanadu-next-review/1900-6131458/
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  • Avatar for KeroseneBlast #3 KeroseneBlast 2 years ago
    I've always been impressed about how XSEED is willing to take on niche games and corner a small, but dedicated market. When AAA games would rather have none of the money if they can't have all of the money (credit Jim Sterling for that paraphrased quote), this mid-tier localization studio is happy with good, consistent returns from a small market. It's refreshing to see the middle tier of the games industry emerge between the indie scene and the AAA market.
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  • Avatar for usagi704 #4 usagi704 2 years ago
    I am very happy to hear a publisher like XSEED is succeeding in their own way. Makes me feel good!
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  • Avatar for usagi704 #5 usagi704 2 years ago
    Deleted October 2015 by usagi704
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  • Avatar for metalangel #6 metalangel 2 years ago
    I heard a lot of good things about Little King's Story but as the only person in the world who didn't own a Wii, I never got to try it.
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  • Avatar for SatelliteOfLove #7 SatelliteOfLove 2 years ago
    @Kat.Bailey

    Huh. So this is where the confusion comes from; I keep hearing both from people who know this stuff well (hence my confusion as I'd heard the previous).
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  • Avatar for Mikki-Saturn #8 Mikki-Saturn 2 years ago
    Little King Story is truly great. I've got it for the Wii, it's arguably the best game on the platform after the Galaxy games. Although I really like Sin and Punishment 2 as well....

    But anyway, Little King Story - buy it if you haven't got it!
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  • Avatar for Don-Rumata #9 Don-Rumata 2 years ago
    @Kat.Bailey The N-Gage port uses the PC version as a base, though, not the other way around. Even the Japanese Wikipedia page doesn't bother to list the N-Gage version as having existed—that doesn't mean Japanese fans don't know about it, but Falcom released the Xanadu Next demo movie right around mid-2005 and it's the version everyone knows, and which Falcom most likely gave to ScriptArts.

    Just because the N-Gage version was finished and released ahead of the original PC version doesn't mean they weren't both in development around the same period, with Falcom taking longer to release a far better game.Edited October 2015 by Don-Rumata
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  • Avatar for manny_c44 #10 manny_c44 2 years ago
    I love XSEED for bringing out Retro Games Challenge and SolatoRobo. They really render a great service to us (sometimes even at a loss! which shows they are in it for more than just money, obviously), thanks XSEED!
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  • Avatar for JohnnyBarnstorm #11 JohnnyBarnstorm 2 years ago
    I got really into the Wii version of Little King Story and bought the Vita digital download on release day. Boy that wasn't great. It kind of ditched a lot of what made the Wii one really fun.

    My boyfriend, AKA Latino Zangief AKA The Brown Cyclone is really, really into the LOH:TITS and defiantly wants a boxed copy of the next game. Which, I guess, is getting a PSP release in North America next year? Is that what's happening?Edited October 2015 by JohnnyBarnstorm
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  • Avatar for thomaslipschultz63 #12 thomaslipschultz63 2 years ago
    FYI, the PC version of Xanadu Next was definitely the original -- the N-Gage port was based off of the PC version and I believe ported by Nokia themselves, definitely not by Falcom.

    Was great to see you again at the event, though, and thanks so much for your enthusiasm and for the lovely article!
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  • Avatar for elthesensai #13 elthesensai 2 years ago
    Glad that they're supporting Steam but I don't game on Windows. If they made games for Mac I'd be more excited about the news. Hopefully games will continue to come out on PSN since that's where I mostly game on anyway.
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  • Avatar for elthesensai #14 elthesensai 2 years ago
    Deleted October 2015 by elthesensai
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