Square Enix Shutting Down Shinra Technologies, The World Wasn’t Ready for the Cloud

By   /   Jan 6, 2016
Shinra Technologies

Square Enix started Shinra Technologies not too long ago with the aim of empowering developers and helping them create bigger and better games. The idea behind Shinra was to create supercomputer-powered cloud gaming platform that offers new types of game worlds that could never have existed before.

Unfortunately, existence became an issue for Shinra itself. The company failed to make a mark and is now being shut down by Square Enix and due to it closing business for good, massive loss is expected.

According to financial statement released by Square Enix:

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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.

The statement added:

The Company will book an extraordinary loss of approximately 2 billion yen in the consolidated financial results for fiscal year ending March 31, 2016. (Out of the above-mentioned amount, the Company has already posted a Loss on Liquidation of Subsidiaries and Affiliates of approximately 1.1 billion yen in the consolidated financial results for the six-month period ended September 30, 2015.)

Cloud gaming platforms are ought to be the next big leap for the gaming industry, following VR, but sadly its implementation for actual development of videogames has been limited. The power of the cloud from Microsoft aims to do something similar to Shinra but is also yet to impressive the world with its offerings, and developers are still forced to fit their designs beneath a performance ceiling.

Since it is Microsoft, it is hard to imagine it will suffer the same fate as Shinra, but this surely isn’t a good sign for the company and all of those looking to dive into cloud gaming.