Level 5 did make Dragon Quest 9 and Ni no Kuni. If that was their one “trick,” the show was worth the cost of the ticket imo.
Squeenix is mostly a publisher now and makes none of its own games outside main series Final Fantasies, which have blown at least since XIII. Their sucktitude was a collaborative effort between many smaller studios across the board. And probably a lot of bad luck. I don’t imagine very many programmers, artists, writers, project leaders and so on wake up, have their morning coffee, and brainstorm new ways to fuck gamers harder than ever today. Not that Squeenix is guiltless. They exiled their top-end talent, outsourced their creativity, and pillaged value from their former great reputation until it was gone.
They’re not worth totally writing off though. A publisher can still release fantastic games in spite of themselves. DQ9 is amazing imo, and Bravely Default is out soon. They probably CAN still turn it around for themselves, but they’d need to go back to Square one (GET IT!?!?! Squ-I’ll shut up) and earn everyone’s loyalty again, the right way. I wouldn’t suggest it’s likely though.