For the second year, Square Enix is absorbing one of its subsidiaries into the company, as reported by Gamebiz.
In what the company describes as an “absorption-type merger”, Square Enix will absorb Tokyo RPG Factory, a JRPG-focused subsidiary studio. As a result, the surviving company will inherit all assets and liabilities of Tokyo RPG Factory, which will cease to exist as an independent entity.
Tokyo RPG Factory, established in 2014, is known for developing solid JRPG outings like I Am Setsuna, Lost Sphear, and Oninako. These games, released for platforms like PlayStation 4, Nintendo Switch, PS Vita, and PC, aimed to recapture the essence of the “golden age” of Japanese role-playing games. The studio’s establishment a decade ago was part of Square Enix’s strategy to revisit and reinvigorate the classic JRPG genre – a former specialty of theirs for most of the 80s, 90s, and early 2000s.
Despite their best efforts, Tokyo RPG Factory’s titles received mixed reviews and struggled to stand out in a competitive market. I Am Setsuna garnered a respectable 7/10 rating, but Lost Sphear and Oninaki couldn’t surpass a score of 6/10. The challenge to emulate the charm and success of past RPGs proved daunting, and neither of the three titles achieved notable distinction.
The absorption of Tokyo RPG Factory into Square Enix comes amidst industry-wide consolidation and mass layoffs, led by Microsoft, which recently let go of thousands of Activision Blizzard employees, casting doubt on the future of Call of Duty.
As for Square Enix, this merger follows the absorption of Luminous Productions by Square Enix last year, another one of its former subsidiaries that faced challenges with its projects, namely, Forspoken.
With this merger, Square Enix is now left without an owned company specifically responsible for development. Instead, it relies on its internal divisions: Creative Business Unit 1, Creative Business Unit 2, Creative Business Unit 3, and Creative Business Unit 4.
The dissolution of Tokyo RPG Factory signifies a shift in Square Enix’s strategy towards the RPG genre. The studio, which initially launched under the leadership of Yosuke Matsuda, President of Square Enix, was inspired by classic titles such as Chrono Trigger. However, after a decade and the release of three games, the subsidiary has not produced any new titles since Oninaki in 2019.
The announcement comes six months after Square Enix reaffirmed its decision to focus on existing franchises instead of experimenting with new IPs.
Nevertheless, while the absorption of Tokyo RPG Factory marks the end of an era for the studio, it also opens up a new chapter for Square Enix as it continues to navigate the complex world of game development and publishing.
