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Square (video game company)
Square (video game company)
Square (video game company)
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Square Co., Ltd.,[b] also known under its international brand name SquareSoft, was a Japanese video game developer and publisher. It was founded in 1986 by Masafumi Miyamoto, who spun off the computer game software division of Den-Yu-Sha, a power line construction company owned by his father. Among its early employees were designers Hironobu Sakaguchi, Hiromichi Tanaka, Akitoshi Kawazu, Koichi Ishii, artist Kazuko Shibuya, programmer Nasir Gebelli, and composer Nobuo Uematsu. Initially focusing on action games, the team saw popular success with the role-playing video game Final Fantasy in 1987, which would lead to the franchise of the same name being one of its flagship franchises. Later notable staff included directors Yoshinori Kitase and Takashi Tokita, designer and writer Yasumi Matsuno, artists Tetsuya Nomura and Yusuke Naora, and composers Yoko Shimomura and Masashi Hamauzu.

Key Information

Initially developing for PCs, then exclusively for Nintendo systems, Square cut ties with Nintendo in the 1990s to develop for Sony Computer Entertainment's upcoming console PlayStation. Their first major project for the console, Final Fantasy VII, was a worldwide critical and commercial success and was credited with boosting the popularity of role-playing video games and the PlayStation outside Japan. Alongside the Final Fantasy series, the company developed and published several other notable series, including SaGa, Mana, Front Mission, Chrono and Kingdom Hearts. Over the years, many staff left to found studios such as the still active Monolith Soft and Mistwalker, and the now defunct Sacnoth and AlphaDream.

In 2001, the company saw financial troubles due to the commercial failure of the feature film Final Fantasy: The Spirits Within, which ultimately led Sakaguchi to leave the company in 2003. The film's failure disrupted merger discussions with Enix, publisher of the Dragon Quest series. Following the success of Final Fantasy X and Kingdom Hearts, negotiations resumed and the merger went ahead on April 1, 2003, forming Square Enix.

History

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Origins

[edit]

Square was initially established in September 1983 as a software subsidiary of Den-Yu-Sha, an electric power conglomerate led by Kuniichi Miyamoto.[1][4] His son Masafumi Miyamoto, then a part-time employee of the Science and Technology Department at Keio University, had little interest in following his father into the electricity business.[4][5] Miyamoto instead became a software developer at the Yokohama branch of Den-Yu-Sha in Hiyoshi, with a focus on the emerging video game market.[4][6] Their original offices were based in a former hairdresser's salon.[5] The company's name referred to a golfing term, and represented its aim to face challenges head-on. It also referenced a town square, emphasizing a production environment based on cooperation.[7]

At the time, video games in Japan were usually created by a single programmer. Miyamoto, on the other hand, believed that graphic designers, programmers, and professional story writers would be needed to keep up with advances in computing and video game development.[6] During these early years, the group was compared to a family business; one of the early hires, Shinichiro Kajitani, joined because he was a friend of Miyamoto, and later compared the company at that time to a "college club".[8] To recruit for this new organizational structure, Miyamoto organized a salon in Yokohama and offered jobs to those who demonstrated exceptional programming skills.[4] This led to the part-time hiring of university students Hironobu Sakaguchi and Hiromichi Tanaka, as well as Hisashi Suzuki, who would go on to become Square's CEO.[4][5] Miyamoto's initial plan was to recruit from Keio University, but this never materialized.[5]

1985–1987: First games, Final Fantasy

[edit]
A man speaking into a microphone
Hironobu Sakaguchi (pictured in 2015) was an early employee of Square and created its popular Final Fantasy franchise.

Square's first attempt at a game was an adaptation of the television game show Torin-ingen. As Miyamoto had not secured the license to adapt it, the show's producers forced Square to cancel the game, prompting its team to be reshuffled.[5] Square's first completed game was The Death Trap (1984) for NEC PC-8801, a text adventure set in a war-torn African nation. The Death Trap was the first game published under the Square brand.[9][10] Its sequel, Will: The Death Trap II, was released the following year to commercial success.[6] Many of Square's early titles were produced for PC devices, and focused on the action genre.[11][12]

In 1985, the company negotiated a licensing agreement with Nintendo to develop titles for the Family Computer.[9] The company shifted to developing for the Famicom to benefit from its stable hardware, compared to the constantly changing components of PCs.[13] Square's first Famicom release was a port of the run and gun game Thexder (1985), and its first original game was the scrolling shooter King's Knight (1986).[6][11] During this period, the team also hired new developers Akitoshi Kawazu and Koichi Ishii, artist Kazuko Shibuya, Iranian-American programmer Nasir Gebelli, and composer Nobuo Uematsu.[5][14][15][16] Yusuke Hirata joined that year as sales manager, and later became the company's publicity manager.[17][18]

In April 1986, Square moved into new offices based in Ginza, noted as one of the most expensive areas for companies to operate; Sakaguchi later speculated Miyamoto was hoping to attract business by appearing affluent.[1][5] Square was re-established as an independent developer in September of that year with capital of ¥10 million, buying the original Square gaming division from Den-Yu-Sha in December.[1] Sakaguchi was appointed as a Director of Planning and Development,[19] and Hisashi Suzuki became one of the company's directors.[20] Due to the high cost of Ginza rents, the company was forced to move into smaller offices in Okachimachi, Taitō.[1][5] Square began struggling financially following multiple commercial failures for Nintendo's Famicom Disk System peripheral.[5][21] Miyamoto asked the company's four directors for game proposals, with plans to have their staff vote on the best idea. Sakaguchi proposed making a role-playing video game (RPG), believing it to be a viable project after the success of Enix's Dragon Quest (1986).[5]

While skeptical, Miyamoto allowed production of the RPG on the condition it only had a five-person team. Sakaguchi led development, bringing in Gebelli, Kawazu, Ishii, and Uematsu.[5] Production of the game, eventually called Final Fantasy, proceeded in "fits and starts". Sakaguchi eventually received help from the other team at Square led by Tanaka, which included Shibuya and newcomer debugger Hiroyuki Ito.[16][22][23] Production on the game lasted roughly ten months. While shipments of 200,000 units were planned, Sakaguchi persuaded Square to double that number.[5][16] Final Fantasy was released in 1987 to commercial success, selling over 400,000 copies in Japan.[16] It saw greater sales success in North American when it was released in 1989, selling 700,000 copies.[24] Two other Japanese successes from 1987 were Rad Racer and The 3-D Battles of WorldRunner.[25]

1987–1995: Expansion and notable staff

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The success of Final Fantasy prompted development of Final Fantasy II (1988), which established many of the series recurring elements. This and four more Final Fantasy titles would appear on the Famicom and Super Nintendo Entertainment System (Super Famicom), culminating in Final Fantasy VI (1994). These were among a string of projects that Square produced exclusively for Nintendo consoles, including the portable Game Boy.[5][8] In 1990, Square moved its offices to the Akasaka district, and then to Ebisu, Shibuya in 1992.[9] In April 1991, Square merged with an identically named dormant company in order to change its share prices. As a result of the merger, Square's foundation was backdated to the other company's July 1966 founding date.[1]

At that time, Square drew some of its development funding from loans from Shikoku Bank. Due to increasing development costs, the bank sent Tomoyuki Takechi on secondment to be their office manager in 1990. Takechi's secondment lasted until 1994, by which time Square had annual sales worth ¥16 million per year.[26][27] In August of that year, Square registered with the Japan Securities Dealers Association to offer shares for public purchase.[7] Sakaguchi was by now a prominent figure within the company, and was promoted to Executive President in 1991.[28][19] His increasing corporate involvement lessened his creative input, prompting him to give greater influence to other staff.[29] Gebelli left Square in 1993, retiring on royalties from the Final Fantasy series.[5][25] Miyamoto stepped down as Square's President in 1991 while remaining a major shareholder, and was replaced by Tetsuo Mizuno.[30][31] In 1991, Suzuki became Vice President.[20]

As Final Fantasy became a featured property for the company, Square produced additional projects that became successful series of their own.[28] The Japan-exclusive real-time strategy series Hanjuku Hero, which began in 1988, parodied conventions of the RPG genre.[32][33] Kawazu helmed an RPG project for the Game Boy. Released in 1989, Makai Toushi SaGa (The Final Fantasy Legend) spawned the SaGa series, which Kawazu would continue to be involved over the years.[34][35] After the release of Final Fantasy III (1990), Ishii was offered the chance to create his own game, leading to the production of Seiken Densetsu: Final Fantasy Gaiden (Final Fantasy Adventure) for the Game Boy in 1991. Ishii went on to develop additional Seiken Densetsu titles, released outside of Japan as the Mana series.[36][37] A famous game from the period was Chrono Trigger, born from a collaboration between Sakaguchi, Dragon Quest creator Yuji Horii, and Dragon Ball artist Akira Toriyama.[38][39] Among other standalone titles were the Western-exclusive Secret of Evermore,[40] and the Mario-themed Super Mario RPG co-produced with Nintendo.[41] Reflecting on this period, Sakaguchi noted that Final Fantasy was the company's most recognized property, while celebrating the fact that the company would still be profitable on the merits of their other successful game series.[42]

Additional staff joined Square by the early 1990s, inspired by the successful Final Fantasy series, with several first working on Final Fantasy IV (1991),[43][44] Yoshinori Kitase acted as a writer and later director,[45] artist Tetsuya Nomura began as a graphic designer,[46] and Tetsuya Takahashi and Kaori Tanaka were both artists and writers.[47][48] Takashi Tokita became a full-time employee at the company,[49][50] and Hiroyuki Ito began his work as a game designer.[23][51] Chihiro Fujioka worked on several projects including co-directing Super Mario RPG.[52] Kenichi Nishi worked in minor roles on Chrono Trigger and Super Mario RPG.[53] Masato Kato, who joined in 1993, became scenario writer for Chrono Trigger.[54][55] Artist Yusuke Naora first worked on Final Fantasy VI.[8][56] Kazushige Nojima, known for his work on the Glory of Heracles series, joined as a scenario writer.[57] Future director Motomu Toriyama, who had no experience with game development, began as a scenario writer.[58]

Square also hired additional music staff.[39][59] Kenji Ito contributed to both the SaGa and Mana series.[60][61] Hiroki Kikuta worked on the Mana series and standalone projects.[59] Yasunori Mitsuda started as a sound designer and was lauded for his work on the Chrono series.[39] Yoko Shimomura, formerly a Capcom composer, did her first work on Live A Live (1994).[62] In 1995, Square moved its headquarters to the Shimomeguro district in Meguro.[9]

1995–1999: Move to PlayStation

[edit]
The Sony PlayStation
Due to Nintendo's continued use of cartridges with the Nintendo 64, Square moved game production over to the PlayStation which used CD-ROMs.

Following the release of Final Fantasy VI and Chrono Trigger, Square staff began planning the next entry in the Final Fantasy series, and entered the emerging 3D gaming market. With the production of Final Fantasy VII, Square decided to shift their projects to Sony Computer Entertainment's new PlayStation console, prompted by the affordability of CD-ROM distribution, compared to Nintendo's continued use of expensive cartridges.[63] This shift caused a long-standing rift between Square and Nintendo; one Square employee recalled Nintendo telling the company to "never come back".[8] In 1996, Square's final project with Nintendo was Sting Entertainment's Treasure Hunter G for the Super Famicom, while the company debuted DreamFactory's Tobal No. 1 for the PlayStation that same year.[9][64] Soon after, the company signed a licensing agreement with Sony, who gained the exclusive right to publish Square's next six games in the West.[8][9]

Square continued work on Final Fantasy VII, with Kitase as director, Naora as art director, Nomura as lead artist, and Nojima as scenario writer. Released worldwide in 1997, Final Fantasy VII was a worldwide commercial and critical success, bringing Square international fame.[8] Also in 1997, at Square's invitation, Takechi returned and took Mizuno's place as President.[27] Three new hires during the period were Shinji Hashimoto, Yasumi Matsuno, and Masashi Hamauzu.[65][66] Hashimoto joined in 1995 as promotions producer for Final Fantasy VII.[65] Matsuno, along with a number of other developers, had left Quest Corporation following the release of Tactics Ogre (1995), and worked with Sakaguchi on Final Fantasy Tactics (1997).[66][67] Hamauzu joined in 1996, and worked on Final Fantasy spin-off titles and the SaGa series.[68] Sakaguchi, working on other projects, took on the role of executive producer for the series beginning with Final Fantasy VIII, and Hashimoto stepped in as producer.[8][29] Hirata went from an administrative position to lead producer, focusing on diversifying Square's library into new game genres.[17]

Several properties were introduced during this period.[8] These included Parasite Eve, based on a novel of the same name by Hideaki Sena;[69][70] Front Mission, which began on the Super Famicom but was transferred to the PlayStation beginning with its second entry;[71] and the Final Fantasy spin-off series Chocobo, starring an incarnation of the titular mascot character.[72] As Square was estranged from Nintendo at the time,[8] the company supported other platforms including the WonderSwan and Windows.[7][73] Late in the PlayStation's lifecycle, Square continued to support the console with multiple releases, such as Threads of Fate (1999) and Vagrant Story (2000).[74] The company also began work on PlayOnline, a digital storefront and a platform for online game services and web content.[75][76]

During the late 1990s, Square launched an initiative to give teams of younger staff members a chance to create experimental titles on smaller budgets. Among such titles were Xenogears, Soukaigi, and Another Mind.[77] Around this time, several staff members departed Square due to creative differences or a desire to work on their own projects.[78] These included Takahashi and Tanaka,[78] Fujioka,[52] Nishi,[79] Kikuta,[59] Mitsuda,[80] and Mana artist Shinichi Kameoka.[81] In April 2000, Suzuki was appointed Square's new President, while Takechi became a company chairman. Also at this time, two outside directors were appointed, Kenichi Ohmae of Ohmae & Associates and Makoto Naruke of Microsoft. The corporate reshuffle was intended to strengthen Square's overseas connections and bring in technical and administrative support for future digital and online content.[20] Alongside this, Yoichi Wada joined the company as a company director and eventually COO.[82] In August 2000, Square was listed on Tokyo Stock Exchange's first section, which includes the largest companies on the exchange.[7][83]

2000–2003: The Spirits Within, final years

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In addition to leading production on Final Fantasy IX (2000), Sakaguchi also worked at the 1997-established Square Pictures studio on a Final Fantasy feature film.[8][84] Titled Final Fantasy: The Spirits Within, it was planned as Sakaguchi's first push towards cross-media storytelling; however, the project ran over budget and ended up costing Square and co-producer Columbia Pictures US$137 million.[28][85] Upon its release in 2001, The Spirits Within was met with mixed critical reception, and grossed only $85 million. Labeled as a box-office bomb, the film damaged Square's finances, and led to the closure of Square Pictures.[8]

Following both the failure of The Spirits Within and a delay of Final Fantasy X (2001) for the PlayStation 2, Square suffered a financial loss for the first time, prompting Sakaguchi, Takechi, and director Masatsugu Hiramatsu to resign from their positions.[8][86] Sakaguchi was kept on as executive producer for Final Fantasy, while Takechi and Hiramatsu were retained as external consultants.[86] This period left Sakaguchi in a state of low morale.[87] In late 2001, Suzuki stepped down as President, and was replaced by Wada.[88] Yosuke Matsuda became Senior Vice President.[82] Kenji Ito also left during this period to work as a freelance composer.[60] Prior to the film's release, rival company Enix was proposing merging with another game company to alleviate development costs, opening serious discussions with Square in 2000.[89][90] Square's financial losses with The Spirits Within prompted Enix to halt discussions.[90]

Under Wada, the company underwent restructuring with the intent of streamlining production and resources, and cutting development costs to increase profits.[91] After evaluation of its financial position, and with changes to the console war due to Microsoft's Xbox, Square opened talks with Nintendo for the first time since their breakup in the 1990s.[92][93] The talks were successful, with Final Fantasy Crystal Chronicles beginning development for the GameCube in late 2001.[93][94] Square also began production on Final Fantasy X-2, the first direct sequel to a Final Fantasy game.[91][95][96] Final Fantasy X-2 was Sakaguchi's last credited project at Square, and he left the company in 2003.[97] Around this time, Square also began development on Kingdom Hearts (2002), with Nomura making his directorial debut. The game was a collaboration between Square and The Walt Disney Company, blending Disney characters with Final Fantasy elements in an original story.[98][99] Kingdom Hearts was Shimomura's last project as an in-house composer before going freelance in 2002.[100] Also released in 2002 was the Japanese version of Final Fantasy XI, the company's first MMORPG.[101][73] Conceived by Sakaguchi, it was developed by the Chrono team and led by Ishii.[73] Final Fantasy XI and its first expansion was Kato's last work for Square before leaving in 2002 to go freelance.[102]

Following the commercial success of Final Fantasy X and Kingdom Hearts, Square and Enix resumed talks and agreed to merge their two companies. Wada described it as a merger of two companies "at their height".[103] Despite this, the merger had its skeptics, particularly Miyamoto who did not want to see his controlling stake diluted in a merged company.[31] Miyamoto's issue was resolved by altering the exchange ratio to one Square share for 0.81 Enix shares, and the merger was greenlit.[104] Square Enix was formed on April 1, 2003, with Enix as the surviving corporate entity and Square dissolving its departments and subsidiaries into the new company.[104][105] Around 80% of Square's staff transitioned into Square Enix.[106] Square's final release was the Japanese version of X-2.[107]

Structure

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Development structure

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During reports on the merger with Enix, Takashi Oya of Deutsche Securities contrasted Enix's tradition of outsourcing development versus Square's approach to developing "everything by itself".[108] When Square was founded in the early 1980s, there was no set development structure, with the ten-person staff freely shifting between roles and projects. This eventually evolved into two loosely defined production groups, led by Sakaguchi and Tanaka, respectively.[5] Following the release of Final Fantasy IV, Sakaguchi divided the production team, assigning different staff members to the Final Fantasy, SaGa and Mana series.[46] A secondary studio was founded in Osaka in 1990, with Final Fantasy Legend III (1991) as their first project.[109]

By 1997, the company was divided into eight development divisions, with two based in Osaka.[110] In 1998, the old development divisions were restructured into Production Departments, and the Osaka branch was closed down.[111] The system was reshuffled again in 2002 to promote "greater understanding", and allow for reassignment between divisions.[112] Among the heads of divisions at this time were Kitase, Kawazu, Tanaka, Matsuno and Hirata.[112] Following the merger with Enix, the eight divisions were incorporated into the new company, with two additional divisions brought in from Enix.[113]

Publishing and localization

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See also: Localization of Square Enix video games

Square self-published the majority of its games in Japan,[1][4] and sporadically acted as a publisher for third-party developers.[77][114][115] By contrast, their Western presence during the 80s and early 90s was small.[25] RPGs were not popular in the North American market at that time, and Square's presence in Europe was limited.[25][116] The original Final Fantasy was published in North America in 1990 by Nintendo of America close to the launch of the Super Nintendo, resulting in its two sequels being passed over for localization at that time.[117][118] One of their third-party North American releases was the original Breath of Fire by Capcom, who were busy enough to outsource publishing and localization to Square. The Redmond office later closed, with some localization staff choosing not to relocate to California.[116][119]

Square initially did not have an internal localization department, instead outsourcing to a number of translators.[120] Following the release of Final Fantasy VII, which saw criticism for its localization, Square created a new internal department to encourage higher quality.[121] Initially having only two employees, it grew steadily over the years.[122] Individual games still ran into difficulties due to their large text sizes, difficulties translating some culture-specific elements, potential censorship, and the introduction of voice acting with games including Final Fantasy X.[121][123][124] Notable localization staff included Kaoru Moriyama,[120] Ted Woolsey,[116] Michael Basket,[121] Richard Honeywood,[121] and Alexander O. Smith.[123]

Many Square titles remained exclusive to Japan, for reasons including design complexities, low graphical quality, and technical difficulties.[116][125][126] In the 1990s, Square's first six PlayStation releases were published by Sony as part of a contract between the two companies.[8] Eidos Interactive notably handled the Windows ports of Final Fantasy VII and Final Fantasy VIII.[127][128] In Europe, Square's local branch self-published a number of games including mainline Final Fantasy titles.[129] It also partnered with third-party companies including Eidos, Crave Entertainment, and Infogrames for either publishing or distribution of different titles.[128][130][131]

Subsidiaries

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The logo of SquareSoft

In 1989, Square established Square Soft in Redmond, Washington, to provide development and publishing support in the West. After opening their North American offices, Square began publishing selected titles under the "SquareSoft" brand.[132][133] As Square moved its projects to PlayStation in 1994, a second Western R&D subsidiary called Square LA was founded in August 1995 in Marina del Rey, California, renamed Square USA in October 1996.[8][9] Square Soft itself would notably develop Secret of Evermore in 1995 for the Super Nintendo[40] and later moved to Costa Mesa, California near Square USA.[8][134] In 1997, a second Square USA branch was opened in Honolulu, Hawaii to focus on new interactive entertainment research,[135] going on to help with CGI development on Parasite Eve and Final Fantasy IX.[136] Square Europe was founded in 1998 in London, England, focusing on publishing in Europe.[1][9]

A publishing brand called Aques was established by Square in 1996. The name was an anagram of Square's name, as well as an acronym for "Advanced QUality Entertainment and Sports", representing the company's diversification outside of role-playing games.[137] That same year, Square established a distribution company called DigiCube, with convenience stores as their main strategy.[1][138] The subdidiary expanded into book publishing, stocked games from other companies, and at one point published games under its own brand.[139][140][141] DigiCube survived the Square Enix merger, though it declared bankruptcy in 2004 after years of declining sales.[142][138]

In 1999, Square created a number of subsidiaries with dedicated roles: Square Visual Works to focus on producing CGI animation, Square Sounds for music and sound effects, Squartz for quality control and user support, and Square Next to support smaller game projects.[1][9] Following the success of Final Fantasy VII in 1997, Sakaguchi founded a dedicated CGI film studio called Square Pictures in Hawaii; his aim was to both develop The Spirits Within and help with further development of Square's CGI technology.[8][84] By the end of 2001, Square Pictures was dissolved and merged into Visual Works.[142] Square USA's Hawaiian branch developed the CGI short "Final Flight of the Osiris" that later formed part of the 2003 anthology film The Animatrix.[143] The branch was shut down in 2002 following a failed attempt to find a film studio partner.[144]

In 2002, Square Next was rebranded as The Game Designer Studio, with ownership between Square's Product Development Division 2 and Kawazu. The aim was to allow for development of games for Nintendo consoles without impacting production on Sony platform games.[92][93][145] The Game Designers Studio was absorbed back into Square Enix after the completion of Crystal Chronicles, first renamed to SQEX Corporation and eventually dissolved entirely in 2010.[146][147][148] Square Sounds was dissolved into the main company in March 2002 as an internal division, a move attributed to cost cutting.[149] The Square Soft subsidiary established in 1989 was rebranded as Square Enix Inc. when its parent company merged with Enix in 2003.[142][150] All the other subsidiaries were folded into Square Enix during the merger, with Visual Works becoming its own dedicated department.[142]

On May 1, 1998, Square formed a joint-venture partnership with Electronic Arts; Square Electronic Arts published Square titles in North America, while Electronic Arts Square published Electronic Arts titles in Japan.[1][151] The partnership emerged the year following Electronic Arts winding down a similar partnership with Victor in December 1997.[152] Shares were distributed between the two on a 70/30 basis relating to their role; Square Electronic Arts had Square owning 70%, while Electronic Arts owned 30%.[127] Electronic Arts Square would also develop the PlayStation 2 launch title X-Squad.[153] In March 31, 2003, coinciding with the Square Enix merger, both ventures were dissolved, with each partner buying the other's shares. In its February press release, Square described the joint-venture as a success.[154]

Affiliates and acquisitions

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Between 1986 and 1988, Square led a collective of game developers dedicated to the production of games for the Famicom Disk System. The Square-owned label, called Disk Original Group (DOG), included Square, HummingBirdSoft, System Sacom, Microcabin, Carry Lab, Thinking Rabbit, and Xtalsoft. This coalition was able to pool financial resources, allowing them to overcome the prohibitive costs of acting individually.[21][155][156] The Famicom Disk System was rendered defunct by 1988 due to increased storage capacity in standard Famicom ROM cartridges.[156] In January 1994, Square acquired developer Cobra Team, turning it into a subsidiary called Solid and focusing their work on cooperating with external developers.[1][157] In 1995, Square established DreamFactory as an affiliate studio, which developed fighting-based titles for the PlayStation and PS2. DreamFactory became an independent company in 2001 after Square transferred their shares.[158][159] Square later founded subsidiary Escape in March 1998 with DreamFactory staff. It only produced Driving Emotion Type-S (2000) before being liquidated in 2003.[142][160]

The company held a stake in Bushido Blade developer Lightweight, founded in 1995.[161][162] It sold that stake to software company Forside in 1999.[163][164] Front Mission developers G-Craft were initially independent, developing the original Front Mission with Square collaborating through their Solid subsidiary and acting as publisher.[115] Square bought out G-Craft and incorporated it in 1997 during production of Front Mission 2.[71] Other affiliates associated with Square between the early 1990s to 2000 were font company Kusanagi, and developers Positron and Luciola.[164][165] In 2002, Ogre Battle developer Quest Corporation withdrew from game development and was bought by Square. Absorbed and repurposed into a production division, their first project was Final Fantasy Tactics Advance (2003).[166][167][168]

[edit]

Many Square employees went on to found notable development studios and other ventures.[78][169] Nishi founded Love-de-Lic in 1995, producing three games including Moon: Remix RPG Adventure. Love-de-Lic staff went on to found other small studios including Skip Ltd. (Chibi-Robo!), and Punchline (Rule of Rose).[53][79][170] Frustrated with Square's rigid hierarchy, Kikuta founded Sacnoth in 1997, which would become known for the Shadow Hearts series;[78][59] he left Sacnoth in 1999 following the release of his project Koudelka and founded the music label Nostrilia.[59][171] Several Xenogears developers, including Takahashi and Tanaka, founded Monolith Soft in 1999 in order to pursue projects outside the Final Fantasy series, developing more games using the Xeno prefix.[78][172]

Kameoka and other developers who worked on Legend of Mana (1999) founded Brownie Brown in 2000. Brownie Brown later worked with Square Enix on Sword of Mana (2003), a remake of Final Fantasy Adventure.[81][173] Also in 2000, Mizuno founded AlphaDream, engaging Fujioka and going on to develop the Mario & Luigi series.[52][174] Staff members from Square Pictures, including The Spirits Within co-director Motonori Sakakibara, established Sprite Animation Studios in 2002.[175][176] After his resignation from Square, Takechi founded music label Dreamusic in 2001 with Kazunaga Nitta.[26] Mitsuda founded the music studio Procyon in 2001 so he could work while maintaining his health.[80] After stepping down as president in 2001, Sakaguchi experienced a period of low morale before returning to game development, founding Mistwalker in 2004.[87] The studio became known for the Blue Dragon and Terra Wars series, as well as multiple stand-alone projects.[28][78][87]

See also

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References

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Notes

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Further reading

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[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Square (video game company)

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Square Co., Ltd. (株式会社スクウェア, Kabushiki-gaisha Sukuwea), operating internationally as SquareSoft, was a Japanese video game developer and publisher founded on September 17, 1986, by Masafumi Miyamoto as a spin-off from Den-Yu-Sha, a power line construction firm. The company specialized in role-playing games (RPGs) and became renowned for its innovative storytelling, cinematic presentation, and expansive worlds, particularly through the long-running Final Fantasy franchise, which debuted in 1987 and helped establish Square as a leader in the genre. After achieving global success with titles like Chrono Trigger (1995) and Final Fantasy VII (1997), which sold over 10 million copies worldwide and popularized JRPGs in Western markets, Square merged with rival publisher Enix Corporation on April 1, 2003, to form Square Enix Co., Ltd., marking the end of its independent operations.

Early Years and Rise to Prominence

Square's origins trace back to the mid-1980s Japanese personal computer market, where its predecessor division targeted the market with adventure games amid financial struggles. Early titles from the Den-Yu-Sha division, such as The Death Trap (1984), and the company's first Famicom release King's Knight (1986), achieved significant success for PC and console titles at the time. The breakthrough came with Final Fantasy in December 1987, created by Hironobu Sakaguchi as a last-ditch effort to save the near-bankrupt company; the game's innovative active-time battle system and epic narrative sold over 1.2 million copies, launching a multimedia franchise that has spanned 16 mainline entries.

Key Innovations and Global Impact

Throughout the 1990s, Square pioneered advancements in gaming technology, including full-motion video cutscenes and 3D graphics on the PlayStation console. Standout titles like Secret of Mana (1993), a cooperative action-RPG, and Chrono Trigger, a time-travel epic co-developed with Dragon Quest creator Yuji Horii and Dragon Ball artist Akira Toriyama, earned critical acclaim for their multiple endings and non-linear storytelling, influencing countless subsequent RPGs. Final Fantasy VII (1997) represented a pinnacle, introducing photorealistic character models, a complex anti-corporate plot, and orchestral soundtrack, while its North American release via Sony expanded Square's international footprint. By the early 2000s, the company had released over 200 titles, cementing its legacy in elevating RPGs from niche to mainstream entertainment.

History

Founding and early years (1986–1987)

Square Co., Ltd. was founded in September 1986 by as an independent entity spun off from the video game software division of Den-Yu-Sha, a power line construction company, with an initial capital of 10 million yen and a staff of 9 employees drawn from the predecessor operation. The new company focused on developing software for personal computers and the emerging Famicom console market, shifting emphasis from earlier PC-centric efforts amid growing interest in gaming hardware in . This pivot positioned Square to capitalize on the burgeoning console sector, where demand for original titles was rapidly expanding. In its inaugural year, Square released several titles to establish its presence, including the hybrid RPG-shooter for the NES in September 1986, marking its first original console game as an independent developer. This was followed by adventure games such as Alpha, a text-based sci-fi title for PC-8801 and other platforms released in July 1986. These early releases, building on the company's prior experience with PC adventures like The Death Trap from the Den-Yu-Sha era, emphasized narrative-driven gameplay but achieved modest commercial success, highlighting the challenges of breaking into a competitive market. Facing financial difficulties by mid-1987, Square greenlit Final Fantasy as a high-risk project led by director , intended as his final effort at the company to avert potential bankruptcy. Released for the Famicom on December 18, 1987, the game introduced innovative RPG mechanics, including a party-based system and turn-based combat, and was composed by , who had joined Square earlier that year. It sold over 520,000 copies in within its first year, providing the financial lifeline that prevented closure and laying the foundation for Square's signature focus on role-playing games.

Expansion and console transitions (1988–1994)

During the late 1980s, Square began transitioning its development focus from the (NES) to the more advanced Super Famicom (SNES) platform, capitalizing on the hardware's enhanced capabilities for richer storytelling and visuals in its games. This shift was exemplified by the release of in 1991, which served as Square's flagship title for the SNES and introduced active time battle systems and character-driven narratives that pushed the boundaries of console RPGs. The game's development marked a pivotal moment, as the team, including newcomer who joined Square in 1990, adapted to the SNES's superior sprite handling and sound chip to create cinematic sequences and orchestral-style music scores. As Square expanded its operations, the company acquired additional office space in Tokyo's district to accommodate growing teams, with employee numbers surpassing 100 by 1990 amid rising development demands. This period saw significant staff influx, including director , who contributed to scripting and event planning for , and artist , who joined as a in 1990 and later handled monster designs for in 1992. These hires bolstered Square's creative output, enabling parallel projects like (1992), which experimented with advanced 2D graphics techniques and non-linear storytelling mechanics, such as the "glimmer" system for skill acquisition during battles. Financially, the transition proved lucrative, with SNES ports and licensing agreements with generating substantial revenue; for instance, sold over 1.4 million copies in alone, helping Square achieve profitability through international distribution deals. Square further diversified with action-oriented titles like (1993), a co-operative RPG that leveraged the SNES's multiplayer capabilities and real-time combat, originally conceived for Nintendo's unreleased add-on hardware but adapted successfully for the base console. To penetrate Western markets, Square launched spin-offs such as (1992), a simplified RPG designed specifically for North American audiences to introduce genre basics without the complexity of mainline entries, complete with localized dialogue and streamlined mechanics. These efforts, supported by early localization teams, laid the groundwork for broader global appeal, while licensing deals ensured cartridge production and distribution exclusivity during the SNES era.

PlayStation dominance and multimedia shift (1995–1999)

In 1995, Square shifted its primary development focus to Sony's PlayStation console, leveraging the platform's CD-ROM capabilities to enable more ambitious multimedia experiences compared to previous cartridge-based systems. This strategic pivot culminated in a formal partnership with Sony Computer Entertainment for exclusive publishing on PlayStation, announced publicly in December 1996, which positioned Square as a cornerstone developer for the emerging console. The collaboration allowed Square to capitalize on the PlayStation's growing market share, moving away from Nintendo platforms and emphasizing 3D graphics and cinematic storytelling. The flagship title of this era, (1997), exemplified Square's PlayStation dominance, with development costs estimated at approximately $45 million USD—one of the highest budgets for a at the time, reflecting investments in advanced , , and full-motion (FMV) sequences. Directed by , the game introduced groundbreaking 3D polygonal environments and real-time battle systems, selling over 10 million copies worldwide and setting sales records that propelled Square's revenue growth through the late 1990s. This success not only validated the partnership but also established Final Fantasy as a global phenomenon, with the title's multimedia elements—like orchestral scores and cinematic cutscenes—drawing in a broader beyond traditional RPG fans. Building on , Square embraced FMV and 3D polygons across its portfolio, transitioning from 2D sprite-based designs to immersive 3D worlds enabled by PlayStation's hardware. Parasite Eve (1998), developed by Square Product Development Division 5, integrated horror elements with real-time action RPG mechanics, featuring high-quality FMV sequences for narrative delivery and hybrid 3D battle arenas that blended pre-rendered backgrounds with polygonal characters. Similarly, (1999), from Product Development Division 3, showcased intricate 3D polygonal models in active time battles and elaborate FMV cutscenes, expanding the legacy with environmental themes and over 40 recruitable characters. These innovations highlighted Square's experimentation with storage for longer, video-rich experiences, allowing for deeper storytelling and visual spectacle that differentiated its titles in a competitive market. The exclusivity deal fueled financial expansion, with Square's annual revenue surpassing 100 billion yen by fiscal year 1998, driven by hit releases and global distribution. To support international growth, Square relied on its U.S. subsidiary, Square Soft, Inc., established in April 1989 for localization and publishing, which handled English adaptations and marketing for North American launches during this period. Early ventures extended beyond games, including CD-ROM-based titles that incorporated live-action elements and interactive narratives, foreshadowing broader media ambitions. Complementing core development, Square released compilation soundtrack albums featuring orchestral arrangements from Final Fantasy and other series, such as Final Fantasy 1987–1999, which enhanced fan engagement and generated additional income streams. Merchandise tie-ins, including action figures, trading cards, and apparel linked to and Parasite Eve, further amplified brand value, creating a multimedia ecosystem that extended the company's reach into consumer products. Internally, Square underwent reorganization in 1996, dividing operations into specialized Product Development Divisions (PDDs) to streamline parallel —PDD1 for major Final Fantasy entries, PDD3 for experimental titles like Chrono Cross, and others for supporting franchises. This structure enabled efficient scaling of development amid the PlayStation boom, positioning Square for sustained output through the decade's end.

Financial crisis and merger (2000–2003)

The release of the Final Fantasy: The Spirits Within in July 2001 represented a major gamble for Square in expanding into Hollywood-style CG animation, but it ultimately triggered a severe . Produced entirely in-house by Square Pictures with a budget of $137 million, the film grossed just $85 million worldwide, failing to after marketing costs and contributing to the company's largest-ever net loss. This debacle, coupled with rising development costs for next-generation consoles and a slowdown in the Japanese game market, led Square to report a projected net loss of over 10 billion yen for the fiscal year ending March 2002, reversing an earlier profit forecast of 700 million yen. The film's failure prompted immediate restructuring at Square, including the resignation of president Junichi Yoda and founder Hironobu Sakaguchi from executive roles, as well as significant layoffs primarily in non-core divisions like the film studio. Square's stock price plummeted amid the turmoil, dropping sharply from highs near 3,000 yen earlier in the year to below 500 yen by late 2001, eroding market confidence. To mitigate ongoing losses and mounting debt, the company shuttered Square Pictures and refocused on core video game development, releasing Final Fantasy X in July 2001 as a major PlayStation 2 title that achieved strong sales of over 8 million units worldwide despite the broader crisis. Subsequent efforts included the online MMORPG Final Fantasy XI in May 2002, which introduced Square to the growing massively multiplayer genre and provided some revenue stabilization, though it could not fully offset the accumulated financial strain from consecutive years of losses. Facing two consecutive years of losses and competitive pressures from Sony's PlayStation 2 dominance, Square entered negotiations with longtime rival Enix in late 2002 to consolidate resources and IP portfolios in the RPG space. On November 26, 2002, the companies announced an absorption merger, with Enix as the surviving entity issuing new shares to Square shareholders at a ratio of approximately 0.85 Enix shares per Square share, resulting in roughly equal ownership stakes in the combined firm valued at about 145 billion yen. The merger was completed on April 1, 2003, dissolving Square Co., Ltd. and transferring all assets—including key intellectual properties like Final Fantasy and Chrono—to the newly renamed Square Enix Co., Ltd., which aimed to achieve annual sales of 100 billion yen through enhanced development efficiency. Marking the end of the company's standalone era was the blend of its RPG heritage and Enix's publishing strengths in titles like Star Ocean: Till the End of Time, released in February 2003 and published by Enix.

Corporate organization

Development and production structure

During its operational peak in the , Square organized its game development into a system of Product Development Divisions (PDDs), allowing specialized teams to focus on distinct projects such as RPGs and action titles. The structure began with PDD1 in as the flagship division, responsible for high-profile RPGs including the Final Fantasy series and later , under the direction of until 2001. Subsequent divisions like PDD3 handled titles such as Xenogears and , enabling parallel production of multiple games across RPG, action, and experimental genres. This divisional approach, consistent through the PlayStation era, facilitated efficient resource allocation for large-scale projects while fostering creative autonomy within each team. The workflow from concept to release emphasized collaborative teams comprising scenario writers, programmers, and artists, who integrated narrative scripting with technical implementation. Concepts originated from director-led brainstorming, progressing through prototyping and , with scenario writers shaping storylines alongside programmers building core mechanics and artists creating assets. This process evolved from 2D sprite-based systems in early titles to by the mid-1990s, supporting the transition to console hardware like the PlayStation. Square's proprietary tools, including custom engines for and scripting, were developed in-house to handle complex polygonal environments and full-motion videos, as utilized in . Quality assurance involved rigorous internal testing followed by beta phases with external firms to identify bugs and balance gameplay before release. By the late , Square invested in R&D for advanced techniques like and real-time rendering, exemplified by their work on the 2001 film Final Fantasy: The Spirits Within, which pioneered photorealistic and influenced subsequent game productions. Employee training programs focused on skill development in , such as 3D tools and scripting, to support the shift to production. The work culture, however, was characterized by intense dedication, including extended hours during crunch periods near release deadlines, a common practice in Japanese game studios of the era.

Publishing, localization, and distribution

Square managed in-house publishing for its titles in primarily through strategic partnerships with console manufacturers, handling , retail distribution, and platform-specific releases. Early games like the Final Fantasy series on the Famicom and Super Famicom were published in collaboration with , leveraging their established ecosystem for cartridge production and sales channels. Following a shift to Sony's PlayStation platform in the mid-1990s, Square partnered closely with the company for titles such as , benefiting from enhanced capabilities and joint promotional efforts to reach broader audiences. Localization efforts were overseen by dedicated teams, particularly through subsidiaries like Square Soft, Inc., established in March 1989 to adapt games for international markets. This process involved translating extensive scripts while incorporating cultural tweaks, such as adjusting dialogue humor, character names, and references to make narratives more accessible—exemplified in the English versions of Final Fantasy, where Japanese idioms were replaced with Western equivalents to preserve tone without alienating players. Voice acting was introduced in English localizations starting with Final Fantasy VII in 1997, featuring full-motion video sequences with dubbed performances, and expanded in subsequent titles like Final Fantasy X, where teams addressed lip-sync challenges and tonal consistency across 40,000 lines of dialogue. International distribution relied on subsidiaries such as Square Soft, Inc. for and Square Europe Ltd., founded in December 1998, which managed regional releases, ESRB ratings, and compliance with local regulations. Final Fantasy games received varying ESRB ratings, with earlier titles often E10+ for mild fantasy violence and suggestive themes, while later mainline entries like were typically rated T for Teen due to blood, language, violence, and suggestive themes, with occasional censorship adjustments like reduced gore or altered costumes to meet standards in Western markets. Marketing strategies emphasized high-profile events, including playable demos at the to generate buzz, as seen with early previews of Final Fantasy titles that highlighted innovative features to attract global press and fans. Revenue models centered on full-price retail sales of physical copies through partnerships with distributors and retailers, establishing Square's titles as premium products in both Japanese and overseas markets. Toward the late and early , the company began experimenting with online previews and digital tie-ins to complement physical distribution. Challenges in Western markets often involved delayed releases due to hardware incompatibilities and extensive localization—for instance, the Super NES releases required renumbering, with the Japanese released as in in 1991 and not released until later ports.

Subsidiaries, affiliates, and acquisitions

Square Co., Ltd. established several subsidiaries to support its international expansion, publishing, and ancillary businesses prior to its 2003 merger with . In March 1989, it founded Square Soft, Inc. as a wholly owned U.S. responsible for North American publishing, localization, and distribution of its video games. This entity handled key localizations such as the Final Fantasy series for Western markets, enabling Square's entry into the region. Similarly, in August 1995, Square L.A., Inc. was created as another U.S.-based wholly owned , focusing on development and production support in . To bolster European operations, Square Europe Ltd. was established in December 1998 as a wholly owned in , managing localization, , and distribution across the continent. In May 1998, Square formed a joint venture with Electronic Arts called Square Electronic Arts L.L.C. in Los Angeles, aimed at co-publishing and distributing Square's titles in North America to leverage EA's established network. Within Japan, DigiCube Inc. was set up in February 1996 as a subsidiary to handle merchandising, music publishing, and distribution of Square's products, including soundtracks and related goods, primarily in Asia. This entity played a key role in commercializing Square's intellectual properties beyond gaming software. Square ventured into computer-generated animation through Square Pictures, founded in 1997 as a Honolulu-based subsidiary dedicated to CG film production. The studio produced the feature film Final Fantasy: The Spirits Within (2001), Square's ambitious entry into Hollywood-style . However, the film's commercial underperformance, grossing only about $85 million against a $137 million budget, led to severe financial strain on Square. As a result, in October 2001, Square announced the closure of Square Pictures, ceasing further film funding and absorbing its operations into the newly formed Visual Works, Inc. subsidiary by the end of 2001. Regarding acquisitions and affiliations, Square pursued limited buyouts but relied heavily on partnerships. In 1998, it acquired the staff and assets of DreamFactory to form the subsidiary Escape, Inc., which developed racing titles like Driving Emotion Type-S (2000) before its liquidation in 2003. Square maintained a close affiliation with independent developer tri-Ace, Inc., publishing the studio's Star Ocean series starting with the original game in 1996 and continuing through subsequent entries, integrating tri-Ace's action-RPG expertise into Square's portfolio without a formal acquisition. In a notable external deal, Square entered licensing agreements with Microsoft in 2002 to develop and publish titles for the Xbox console, including early support for RPG ports amid the platform's Japanese launch. Following the 2003 merger forming Co., Ltd., most subsidiaries were restructured or absorbed, with entities like Square Soft, Inc. rebranded as , Inc., and others dissolved or integrated into the parent company's operations.

Leadership and key personnel

Founders and executives

Square's software division was established in September 1983 by within his father's power line construction company, Den-Yu-Sha Co., Ltd. In 1986, Miyamoto spun off the division into an independent entity, Square Co., Ltd., focused exclusively on for the Famicom system, marking a pivotal strategic shift from general software to console gaming. He served as the company's first president until 1991, during which time Square expanded rapidly, releasing key titles and establishing itself in the RPG market. Under Miyamoto's leadership, the company prioritized business growth, including going public in 1991 on the Securities Dealers Association's over-the-counter market. Following Miyamoto's departure from the presidency in 1991—while he retained majority ownership of approximately 51% of shares—Tetsuo assumed the role, guiding Square through its early console successes. Tomoyuki Takechi later became president and CEO, overseeing the company's transition to Sony's PlayStation platform in the mid-1990s, including high-budget projects like , which Miyamoto approved as a major shareholder. In April 2000, Hisashi Suzuki succeeded Takechi as president and CEO, continuing the multimedia expansion but facing escalating financial pressures from ambitious ventures. Suzuki resigned in November 2001 amid the company's deepening crisis, exacerbated by the failure of Final Fantasy: The Spirits Within. Yoichi Wada, previously Square's , was appointed president and CEO in late , leading the company's response to its fiscal challenges through cost-cutting measures and merger negotiations with . The merger, announced in November 2002 and finalized in April 2003, formed Co., Ltd., with Wada as the new entity's president; former president Keiji served as vice president, and as a special director. Miyamoto, still holding about 40% of Square's shares after partial sales in , personally approved the merger terms despite initial objections to the share exchange ratio. Square's board initially comprised a small core team led by Miyamoto, reflecting the startup's modest origins. As the company grew and partnered closely with for PlayStation exclusives, its structure evolved; in October 2001, acquired an 18.6% stake, becoming the second-largest and likely influencing board composition with representatives to align strategic interests. Post-merger, Miyamoto briefly joined the board as a director before stepping away to pursue other investments, while retaining significant influence as a .

Notable developers and creative leads

served as the creator of the Final Fantasy series, developing the original game in 1987 as a high-stakes project intended to rescue Square from impending bankruptcy, embodying his "save the company" ethos that prioritized ambitious RPG innovation to ensure the studio's survival. He directed the early entries and produced later ones, including (1997), VIII (1999), IX (2000), and served as executive producer for X (2001), shaping the series' evolution toward more expansive narratives and technical achievements during Square's PlayStation era. Sakaguchi departed Square in 2001 following the commercial failure of the CGI film Final Fantasy: The Spirits Within, which contributed to the company's financial strain and prompted his exit to form . Nobuo Uematsu composed the soundtracks for nearly all major Square titles, most notably the Final Fantasy series, establishing himself as a pioneering figure in with melodic, emotive scores that elevated RPG storytelling. His work beginning with (1994) introduced more orchestral elements, including the iconic opera sequence "Aria di Mezzo Carattere," which showcased symphonic ambitions within console limitations and influenced subsequent game audio design. Uematsu's contributions from the Square era laid the foundation for live orchestral performances like the Distant Worlds concert series, which debuted in 2007 and celebrated his original compositions through global symphony tours. Yoshinori Kitase directed (1994), (1997), and co-directed (1995), guiding these projects through innovative gameplay and narrative depth that defined Square's 16-bit and early 3D output. In , Kitase pioneered cinematic storytelling by integrating cutscenes and pre-rendered backgrounds, allowing for dramatic scene transitions and emotional depth that transformed RPG presentation on the PlayStation. Tetsuya Nomura emerged as a lead character designer starting with (1997), crafting iconic visuals for protagonists like and antagonists like Sephiroth that blended exaggerated proportions with detailed weaponry and attire. His designs from this period onward influenced Square's modern aesthetic, incorporating elements of contemporary fashion, zippers, belts, and spiky silhouettes that became hallmarks of the company's character art in subsequent titles. Following Square's in 2001, several notable developers departed amid intense development crunch and project failures, including Sakaguchi's exit, contributing to a talent exodus that impacted the studio's creative direction before its merger with .

Products and media

Major franchises and series

Square's most iconic franchise, Final Fantasy, debuted in 1987 and became the cornerstone of the company's success in the role-playing game (RPG) genre. By 2003, the series encompassed 11 mainline entries, from the original NES title to Final Fantasy X (2001) and the online-focused (2002), with cumulative worldwide sales exceeding 70 million units across all titles and spin-offs as of 2003. The series pioneered innovative mechanics, such as the Active Time Battle (ATB) system introduced in (1991), which blended turn-based strategy with real-time elements by using timers to dictate action sequences, allowing players to input commands while battles progressed dynamically. Recurring motifs like summons—powerful ethereal beings such as or , often tied to elemental magic—evolved from simple call-able allies in early games to integral narrative elements representing ancient magical entities, enhancing both combat depth and storytelling themes of heroism and destiny. The Final Fantasy series' commercial pinnacle under Square was (1997), which sold nearly 10 million copies worldwide by 2003, establishing 3D graphics and cinematic storytelling as RPG standards and propelling the franchise into multimedia territory. This entry shifted from pixel art to fully rendered environments, introducing a sprawling sci-fi narrative centered on eco-terrorism and personal loss, while refining ATB into a more fluid system with limit breaks for character-specific powerful attacks. Compilations like Final Fantasy Anthology (1999) further extended the series' reach by bundling enhanced ports of and VI for PlayStation, preserving classic 2D entries with new CG cinematics and making previously Japan-exclusive titles accessible globally. Overall, the franchise's design philosophy emphasized evolving turn-based combat toward greater player agency and emotional immersion, with summons serving as symbolic bridges between the mundane and mythical worlds. The SaGa series, originating with The Final Fantasy Legend (1989) on but branching into standalone titles under Square, emphasized nonlinear storytelling and player-driven progression. Key entries include (1992) for Super Famicom, which introduced free-form narratives where player choices shaped events across generations, and (1997) for PlayStation, expanding this to multiple protagonists in interconnected worlds with branching scenarios. By the early , the series had sold several million units cumulatively, praised for its complex, non-linear systems that allowed without fixed plots. Unlike linear RPGs, SaGa games featured "glimmering" mechanics, where characters learned abilities mid-battle through observation, fostering replayability and strategic depth in a turn-based framework. Square's Mana series blended action-RPG elements with fantasy lore, starting with Final Fantasy Adventure (1991) but gaining prominence with Secret of Mana (1993), a cooperative action title for Super Famicom that sold over 1.5 million copies in Japan and more than 500,000 in the West. This game innovated real-time cooperative combat for up to three players, with seamless world exploration and a ring-menu system for quick ability selection, set in a vibrant world of elemental spirits called Mana. Seiken Densetsu 3 (1995), released initially only in Japan, extended this hybrid style with class-change systems and multiple protagonists, allowing deeper customization in action-oriented battles against a goddess-corrupting force; it achieved solid domestic sales of approximately 890,000 units before later global remakes boosted the series' profile. The franchise's core philosophy integrated fluid, combo-based combat with RPG progression, distinguishing it from Square's turn-based offerings. The Chrono series marked Square's foray into time-travel narratives, with (1995) co-developed by a core team including and for . This title sold 2.65 million units by 2003, lauded for its 13 unique endings influenced by player decisions across eras, from prehistoric times to a dystopian future, all tied to a central theme of averting through temporal jumps. Combat featured a innovative "Tech Points" system for combo attacks in a semi-active battle format, emphasizing party synergy without random encounters. Though brief, the series exemplified Square's experimental side, influencing later time-manipulation mechanics in RPGs.

Standalone games and other titles

Square's early portfolio featured standalone titles that explored adventure and strategy genres, beginning with The Death Trap in 1984, a text-based developed and published for Japanese computer platforms including the NEC PC-8801, NEC PC-9801, and Fujitsu FM-7. This title, one of the company's inaugural releases under its original name Den-Yu-Sha, established roots in with graphical elements depicting locations and objects, setting the stage for Square's evolution from computer software to console gaming. Ports to these multiple platforms highlighted Square's initial focus on accessibility within the Japanese PC market during the mid-1980s. In the mid-1990s, Square ventured into experimental strategy RPGs with (1996), a Super Famicom exclusive that integrated tactical squad-based with a distinctive dragon-raising system. Players commanded human units accompanied by trainable dragons, which autonomously attacked enemies and could evolve through battles and item feeds, adding layers of customization and environmental interaction such as manipulation for strategic advantages. This title exemplified Square's willingness to innovate beyond traditional RPG structures, blending real-time elements in a turn-based framework to emphasize squad synergy and dragon mechanics as core gameplay pillars. The late 1990s saw Square diversify into horror-RPG hybrids with Parasite Eve (1998), a PlayStation title developed and published as an unauthorized sequel to Hideaki Sena's 1995 novel of the same name. The game followed NYPD officer in a narrative blending mitochondrial mutation horror with active-time battle RPG mechanics, achieving global sales of approximately 1.9 million units. Its 2000 sequel, , expanded on these foundations by shifting toward tropes with fixed camera angles and resource management, while retaining RPG progression and the protagonist's psychic abilities derived from the novel's premise. These entries demonstrated Square's capability to fuse cinematic storytelling with genre-blending gameplay, appealing to audiences beyond pure fantasy RPG fans. Approaching the new millennium, Square released Vagrant Story (2000) for the PlayStation, an action RPG with tactical depth centered on weapon crafting, risk-reward combat, and a intrigue plot. The game's innovative affinity system allowed weapons to gain elemental properties based on enemy types and materials, encouraging adaptive strategies in dungeon-crawling sequences without traditional leveling. Though the original lacked full , its atmospheric sound design and detailed text delivery enhanced the immersive, noir-inspired narrative of political conspiracy in the kingdom of Valendia. Compilations and remakes also formed a key part of Square's standalone output, such as Final Fantasy Origins (1998), a PlayStation bundle remastering the first two entries in the flagship series with updated 2D graphics, rearranged soundtracks, and quality-of-life additions like auto-battle modes and save states. This package preserved the core narratives of warring kingdoms and imperial conquests while modernizing accessibility for new players, contributing to the preservation and expansion of early RPG designs. By the time of its 2003 merger with , Square had produced over 50 standalone titles, ports, and collaborations across platforms from PCs to consoles, showcasing a broad spectrum of genres that extended the company's influence beyond its core franchises.

Film, merchandise, and non-gaming ventures

Square expanded beyond video games into film production with Final Fantasy: The Spirits Within, a 2001 American animated feature directed by , the creator of the Final Fantasy series. Produced by Square USA in , the project marked the company's first foray into full-length (CGI), aiming to pioneer photorealistic human in cinema. The production involved constructing a dedicated $45 million facility, where a team of approximately 200 animators, graphic artists, and technical staff labored for four years, generating over 10 terabytes of 3D data and 5 terabytes of 2D artwork to render lifelike characters and environments. Square also explored music releases to extend its intellectual properties, producing orchestral arrangements of game soundtracks performed live. A notable example is the album 20020220 music from Final Fantasy, a live recording of a February 20, 2002, concert by the Tokyo Philharmonic Orchestra at the , featuring compositions by from multiple Final Fantasy titles. The event and subsequent release underscored Square's efforts to bring its iconic scores to concert halls, blending gaming heritage with classical performance traditions. Early experiments in mobile and arcade formats represented additional non-gaming pushes, though results were mixed. In the early s, Square developed Java-based games for feature phones, including adaptations of Final Fantasy for platforms like NTT DoCoMo's service, targeting the emerging mobile market in . Arcade collaborations, such as limited crossovers with rhythm games like , tested interactive extensions of franchise music and characters, but these ventures often faced technical and market hurdles. Failed initiatives included the short-lived Square service launched around , which aimed to build an but shut down amid the dot-com bust, and hardware experiments like custom cartridges that underperformed commercially. Complementing these were tie-in media like novelizations and comics that expanded franchise lore, alongside art books drawing inspiration from traditional Japanese aesthetics, such as ukiyo-e styles reminiscent of , to deepen narrative immersion.

Legacy and impact

Innovations in the RPG genre

Square's contributions to the role-playing game (RPG) genre, particularly through the Final Fantasy series, introduced several mechanical and technical advancements that became benchmarks for pacing, narrative delivery, and world-building in Japanese RPGs (JRPGs). One of the most influential was the Active Time Battle (ATB) system, first implemented in Final Fantasy IV (1991). This hybrid combat mechanic combined real-time progression with turn-based decision-making, where each character's action gauge fills progressively during battles, enabling players to input commands—such as attacks, spells, or items—as the gauge reaches capacity, rather than waiting for strict turns. This design formula for pacing prevented downtime in fights while allowing strategic depth, as enemies acted independently based on their own gauges, heightening tension and responsiveness. Developed by Hiroyuki Ito, ATB was patented by Square in 1995 and served as the core battle system for most subsequent Final Fantasy titles, influencing the tempo and interactivity of combat in numerous JRPGs. Final Fantasy VII (1997) further advanced RPG storytelling by integrating full-motion video (FMV) sequences, marking Square's bold shift toward cinematic presentation on the PlayStation console. These pre-rendered videos, often featuring live-action elements blended with animated models, delivered emotionally charged cutscenes that deepened character arcs and plot revelations, such as the iconic opening reactor bombing or Sephiroth's dramatic appearances. By overlaying interactive 3D models onto FMV backdrops for seamless transitions, the game elevated narrative immersion beyond static text or simple animations, setting a new standard for visual storytelling in JRPGs that emphasized spectacle and player investment. This approach influenced the genre's evolution toward movie-like experiences, with many subsequent titles adopting extended cinematics to enhance emotional depth. Earlier entries in the series standardized exploratory and summoning elements that shaped console RPG design. The mechanic, introduced in Final Fantasy I (1987) and refined across sequels like Final Fantasy VI (1994), allowed players to traverse vast, abstracted overworlds with vehicles such as airships, facilitating non-linear exploration and side quests in a way that simulated open-world freedom within hardware limitations. Complementing this, the summon mechanics—debuting prominently in Final Fantasy III (1990)—enabled players to call forth powerful entities like or for battlefield aid, adding layers of strategic customization and mythological flair that became synonymous with JRPG progression. These features collectively normalized expansive, player-driven discovery and summon-based power escalation in console RPGs, inspiring similar systems in titles beyond Square's catalog. The leap to 3D graphics in represented a pivotal technical transition from 's 2D sprites, utilizing polygonal models against pre-rendered backgrounds to create more dynamic, navigable environments. This shift allowed for deeper spatial immersion, with rotatable camera angles and detailed urban or natural locales like Midgar's slums, which players could explore in real-time, fostering a sense of scale and interactivity unattainable in . Square's experimentation with polygons not only pushed console hardware boundaries but also enabled richer environmental storytelling, influencing JRPGs to embrace 3D for atmospheric depth. Final Fantasy XI (2002) pioneered multiplayer integration in the series as Square's first massively multiplayer online RPG (MMORPG), with its closed beta launching that year on and PC. This cross-platform title introduced persistent online worlds where players formed parties for cooperative quests in Vana'diel, laying foundational mechanics for social progression, dynamic events, and subscription-based economies in online RPGs. As one of the earliest console MMORPGs, it expanded the genre's scope beyond solo adventures, influencing the shift toward interconnected, community-driven experiences. These innovations garnered significant recognition, with multiple Final Fantasy titles earning Game of the Year honors at major Japanese awards. For instance, Final Fantasy XII (2006) won the top prize at the Famitsu Awards, while Final Fantasy VII Rebirth (2024) claimed Game of the Year at the Famitsu Dengeki Game Awards 2024, and Final Fantasy XVI (2023) received the Award of Excellence at the Japan Game Awards 2024, underscoring Square's enduring impact on RPG excellence.

Cultural and industry influence

Square's release of in 1997 marked a pivotal moment in the popularization of Japanese role-playing games (JRPGs) in Western markets, transforming the genre from a niche interest among console enthusiasts to a mainstream phenomenon. The game's innovative 3D graphics, cinematic storytelling, and accessible gameplay attracted millions of new players outside , with initial sales exceeding 10 million units worldwide by the early and contributing to a surge in JRPG titles from other developers. This success helped elevate the overall visibility of JRPGs, as evidenced by increased localization efforts and sales for subsequent entries in the genre during the late 1990s and early . The game's impact extended to fan community growth, fostering vibrant online forums and early conventions in the 1990s that built dedicated followings. Sites like Eyes on Final Fantasy emerged as hubs for discussions, , and strategy sharing, while events such as Square's promotional appearances at trade shows like the drew thousands of attendees, solidifying a global enthusiast base around the Final Fantasy series. These communities not only sustained interest between releases but also influenced developer engagement through feedback loops that shaped future titles. Economically, Square reached a peak market valuation of approximately 500 billion yen in 2000, reflecting the commercial triumph of and positioning the company as a leader in Japan's burgeoning sector. This financial strength contributed to industry consolidation trends, as competitors sought mergers to compete with Square's dominance in RPG development and international expansion. However, the company's 2001 financial crisis, triggered by the box-office failure of the film Final Fantasy: The Spirits Within, led to a net loss of 16.5 billion yen and a near-bankruptcy scare that eroded developer morale and prompted widespread critiques of internal crunch culture. Reports from the period highlight extended overtime during high-profile projects, exacerbating stress amid the uncertainty, which ultimately influenced the decision to merge with in 2003. Following the merger, Square's intellectual properties were transferred to the newly formed , preserving their legacy through numerous remasters and reboots that continue to generate revenue and cultural relevance. Titles from the Square era, such as Final Fantasy VII, have been remade multiple times, with the 2020 Final Fantasy VII Remake serving as a direct evolution of the original's narrative and mechanics, selling over 7 million units and reintroducing the series to new generations. This ongoing revitalization underscores Square's enduring influence on . Square's global reach expanded notably in the late , with exports to over 30 countries and overseas revenue accounting for around 40% of total sales by 1999, driven by strong North American and European performance of flagship titles. This not only diversified revenue streams but also accelerated the adoption of JRPG elements in Western , blending Eastern depth with global market demands.

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