It doesn't matter how much money they are losing on FFXIV. This game was not in production long enough and is a year or two away from actually being ready. They are not losing money in this game, it was their fault for releasing early. Imagine as if it was never released and is still currently being invested in and you will see the game isn't a problem for the company.
That's true, except two caveats make it a mistake: First, there is some cost to support, although I imagine that might not be a terribly overwhelming cost given how small the population of players is; and second, at the moment they are probably spending money on something they know
can't succeed. The launch was just so disastrous that it would take a miracle for people to flock back to this game.
Which is perhaps the point--maybe they knew they had a dud on their hands, and wanted to see just how many people would play it before they invest years more of development into it. They have their answer, and we have their updates--lackluster. They clearly do not have a big development studio generating content. We're getting updates that are underwhelming by F2P Facebook RPG standards.
Imagine if they had spent millions more generating more and more cutscenes, hiring more voice actors, and getting super-fast servers, and it tanked just as badly as it did. We'd be looking at an SE deeper in the hole.
Maybe they made the right call. "This project is costing a lot, let's actually test the waters and see if anyone wants to play a new JRPG MMO before we sink millions more into it." Clearly, people don't want to. ****, it's hard getting Americans to play a pretty well-polished, user-friendly, pretty MMO like Aion. Rift is supposedly doing well, but I'm not convinced it's viable in the longterm. SE might be realizing that the MMO market, which perhaps 3 years ago seemed like a guaranteed cash cow, is hard to enter with a new product, and what players demand from an MMO isn't what SE is used to providing in its newer titles. I suspect this is why they aborted FFXIV's development and put it on minimal life-support. Right now they're just trying to sell whatever remaining units they have and keep the small playerbase marginally happy with small updates. My prediction is that we never see a PS3 release.