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.