I think it became awfully clear through FuRyu's products that the game division was part of a larger conglomerate, rather than a game-focused company. The products are made on a very tight budget. While they hired some well-known staff for The Legend of Legacy and The Alliance Alive, the problem of overall project scope still stands. It also didn't help that they were trying to get into a niche that was created by a successful project shortly before: aside from cheap Digimon and Cardfight! Vanguard tie-ins, The Legend of Legacy looks like low budget Bravely Default (although this project got a bit more breathing room and got more creative freedom as a result) and Caligula looks like low budget Persona/Trails game. And what they have in production now looks pretty niche too.
I think FuRyu have to blame themselves for their lack of success. Compare them to Cygames, who are really serious about getting a foot in the console space by hiring a lot more renowned key staff, taking on bigger projects, and giving these projects a bigger budget and more time to come to life. Cygames isn't just trying it with the Granblue Fantasy action game by PlatinumGames, but also with Project Awakening, a RPG that looks like it's not directly related to their mobile hit IP (
announced in August 2016, shown
behind closed doors last month at E3). Technical director Junji Tago, who worked at Konami on the Fox Engine, is working on that game. And
this week, they announced three other key hires in Danganronpa producer Yuichiro Saito, Bravely Default director Kensuke Nakahara, and Idolmaster general producer Akihiro Ishihara. These aren't just project collaborations, but actual hires.
FuRyu just lacked such initiatives and tried to survive by making quick bucks off small projects in a hit-driven industry.