They are still releasing an average of one or two titles per month in Japan (if you count cellphone-based releases the number is even higher).
I don't, since I can't play them.
The thing is, for the current fiscal year they have decided to focus on handheld-based remakes and handheld-based sequels.
And that's exactly my complaint.
And then obviously, there is the standard criticism of them focusing too much on Final Fantasy, Dragon Quest and possibly Kingdom Hearts.
Which, at this point, is legitimate.
However, this is not a recent trend, but has been ongoing for a couple of years, as they try to keep their profitability as high as it has been during the last couple of fiscal years. If you look at their releases now, in terms of sales (not gameplay) there is far less hit and miss right now than during the PlayStation years.
PS1 or PS2?
Square back then certainly had a much more varied and perhaps (arguably) more exciting line-up, but several high profile games apparently did not live up to the lofty expectations (Chrono Cross, Parasite Eve II), while other games (mostly non-RPG stuff) only sold a very limited amount of copies (Racing Lagoon, Chocobo Racing, Ehrgeiz, various sports games).
Whose expectations didn't they live up to? That's certainly debatable, unless you're talking about sales. In that case, Chrono Cross certainly lived up to them.
My point is that, while I realise it's more expensive to produce games now, it certainly seemed that Squaresoft were willing to take risks. Now, it's gotten to the point of parody the number of times they've released the same games. I used to bitch about Ninendo doing it, but I think Squeenix has firmly and decisively taken that crown.