Square Enix’s cloud based gaming division, Shinra Technologies will shut down according to the recent statement released by the company. The dissolution and liquidation will result in huge losses for Square Enix which will come approximately to 2.2 billion yen or $16.8 million.
Started just a year ago, the company was named after the evil corporation from Square Enix’s famous game Final Fantasy VII. Helmed by Square Enix’s former CEO Yoichi Wada, Shinra’s was started with a purpose to provide cloud based gaming experiences. With Shinra closure, this will be Wada’s third big loss for the company. Prior to this, Wada was responsible for the closure of Square Enix’s India and Latin America operations.
Square Enix issued a statement explaining the closure of the company:
“STI, as a cloud platform operator, has been trying to raise funds necessary for further business operations from third party investors. However, STI has found no prospective investors at this point, and therefore has to discontinue its business.”
Shinra was working on a Prototype Accelerator Program with three studios – Hardsuit Labs who have developed FPS game Blacklight Retribution, Human Head studios who was working on Prey 2 and Republique developer Camouflaj.
Shinra has offices in Montreal, New York City and Tokyo and rolled out a technical beta in Kansas City and Texas last year. The US arm of Shinra will shut by 31 March, 2019 and the Japanese branch will dissolve by 30 June, 2016.
