News Square Enix to Shut Down Shinra Technologies Cloud Platform Business
posted on 2016-01-06 01:50 EST
Square Enix announced on Tuesday that it will dissolve and liquidate both its New York-based Shinra Technologies, Inc. (STI) cloud platform operating business, as well as its Shinra Technologies Japan Co., Ltd. subsidiary in Japan. Square Enix cited STI's lack of success in attempting to raise funds for continued operation from third-party investors as the reason for the dissolution.
Square Enix will book an "extraordinary loss" of 2 billion yen (about US$17 million) in its consolidated financial results at the end of the fiscal year on March 31.
Square Enix estimates that it will complete liquidation of STI by March 31, 2019, and Shinra Technologies Japan Co., Ltd. by June 30, 2016.
Square Enix established STI in September 2014 to work directly with game studios to provide cloud-based gaming services.
Square Enix ended its Dive In mobile game streaming service in September last year, after only nine months of operation. The service allowed mobile users to play Square Enix games on their mobile devices through streaming.