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I think technically they are misrepresenting where the funds are being sent. Although anyone who follows this game should have figured it out and has no one to blame but themselves at this point. I could see where the misappropriation term could loosely apply. Most people assume that when they pay for an online service, a certain amount is spent on upkeep and improvements and the rest is profit. However, in the case of FFXI, it seems like almost all of the money is going elsewhere and the service is degrading as a result. For me, it hasn't gotten to the point where I won't pay for the game any more, but I certainly won't be buying into any of their other franchises or recommending them to friends.
Like with any business, SE is perfectly entitle to keep some profits for its business. The only way to prove misappropriation here would be to show something like they are paying the workers involved with this project to work on a different one instead. On that balance sheet, everything after labor (developers making things for this game) and server costs for this game is profit that they are perfectly legally free to use how they please. In order to increase the allocation for this game, you'd have to do a cost benefit analysis that shows using the after-current-costs profit to expand the team and update the game would be worth the amount of additional income it would likely provide- for each new developer they add to the project, they'd have to expect a gain in subscribers at least equal to how much they'd be paying that person each month. It's just basic business.
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I think we all can agree that whatever problems this game has have very little to do with the staff maintaining it and almost everything to do with corporate management at this point. It was probably not like that in the beginning, but it certainly has become that way.
Though we can express our opinions and make casual observations, we really don't have the information necessary to solidly make these kinds of accusations. I'm not speaking for or against here to be clear: I'm just saying we don't really have the information necessary to make those kind of accusations- not commenting on whether or not they are truly valid.