Square Enix shutting down Shinra Technologies

Square Enix has shut down Shinra Technologies, its 2014-established cloud gaming subsidiary, the company announced.

Both Shinra Technologies, which is based in New York, and subsidiary Shinra Technologies Japan, based in Tokyo, will be dissolved. The estimated dates of completion of liquidation for each company are March 31, 2019 and June 30, 2016, respectively.

In a press release, Square Enix explained the reason for Shinra’s closure: “As a cloud platform operator, [Shinra Technologies] has been trying to raise funds necessary for further business operations from third party investors. However, [Shinra Technologies] has found no prospective investors at this point, and therefore has to discontinue its business.”

Square Enix notes it will book an “extraordinary loss” of approximately two billion yen in the consolidated financial results for the fiscal year ending March 31, 2016.