Square Enix dissolves Shinra Technologies; will take a 2 billion yen loss

While Shinra Technologies could have meant big things for gaming development, Square Enix just couldn't continue keeping it afloat.

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Square Enix has shut down its cloud-gaming technology subsidiary, Shinra Technologies.

Shinra Technologies was established in 2014 and would have provided technology solutions to allow developers to process their games in the cloud, which would in turn deliver a much more impressive gameplay experience for the player.

Square Enix claims the reason behind its closure is due to the lack of third-party funding. “STI, as a cloud platform operator, has been trying to raise funds necessary for further business operations from third party investors,” states a press release published by the company. “However, STI has found no prospective investors at this point, and therefore has to discontinue its business.”

As a result, Square Enix will book a loss of 2 billion yen ($16.9 million) related to Shinra Technologies for its fiscal year ending March 31, 2016. The company had invested $15 million in the U.S. division of Shinra and 80 million yen (a little over $670,000) to its Japanese branch.

We conducted an interview with Square Enix on Shinra Technologies this past July, which we came away from the experience being very impressed. To read our interview, head on over here and try not to get too depressed over its shuttering.

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