In a post on the official website, Square Enix announces the closure of their Cloud Gaming Platform, Shinra Technologies after the company posted a massive loss.

Earlier this morning, Square Enix announced the closure of their cloud based gaming platform, Shinra Technologies through a statement on its website. The Yoichi Wada led company had been formed in 2014 with the goal of building a cloud-gaming platform with supercomputer-class capabilities. To help in this cause, Shinra Technologies was created as an independent subsidiary of Square Enix in order to help it retain its neutrality and independence as a platform.

Unfortunately, business operations solely depended on funding from third party investors, which never really materialized after the company was revealed in 2014. This lack of support ultimately led Shinra Technologies to suffer a massive financial loss of $2 billion yen, approximately $16.8 million USD, for the 2015 fiscal year which doesn’t technically end until March 31, 2016. The lack of support and funding led Square Enix to make the decision to shut down operations.

“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.

Square Enix Group will keep its confidence in cloud-gaming, and we will continue to develop our business using cloud technologies to deliver the new gaming-experiences to the world.

This is an unfortunate situation and we are offering all the assistance possible to any employees affected by this. We want to thank them for their hard work and sincerely wish them well in the future.”

First revealed at the 2014 Tokyo Game Show, the New York based company tried to differentiate itself from other cloud based options which focused video game streaming by giving developers access to multiple servers at a time, allowing for more intense experiences through better physics and greater graphics in games.

Shinra Tech Demo

While Shinra Technologies never produced anything for Square Enix during its short lifespan, the company had been previously rumored to be working with Avalanche Studios on a cloud based multiplayer mode for the recently released Just Cause 3. As fans now know, there is no official multiplayer mode with the game, though it was something that had been hinted at. Human Head Studios, the former Prey 2 developers, had also been linked to Shinra, so it’ll be interesting to see how this news affects what they’re working on.

Outside of the Shinra Tech news, 2015 was a solid year for Square Enix as the timed Xbox One exclusive Rise of the Tomb Raider sold over a million copies and has a scheduled release on the PC platform in a few weeks. In addition, a couple of highly anticipated games are making their return as an HD remake of Final Fantasy VII was finally revealed at Sony’s E3 2015 press conference and after years of waiting, Kingdom Hearts III, a game that meshes the world of Disney and Square Enix together, is finally a reality.

Were you excited about the potential of Shinra Technologies or had you forgotten about this altogether? Join in on the discussion below.

Source: Square Enix Website

tags: PC, Square Enix