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Square (video game company)

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Square Co., Ltd.
Company typePublic (before merger)
IndustryVideo games
FoundedSeptember 1986; 40 years ago (1986-09)
FounderMasafumi Miyamoto
FateMerged with Enix to form Square Enix
Headquarters
Tokyo
,
Japan
Area served
Worldwide
Key people
Masafumi Miyamoto (founder), Hironobu Sakaguchi (Director of Planning and Development, Executive President), Hisashi Suzuki (board member, Vice President)
ProductsFinal Fantasy series, SaGa series, Mana series, Front Mission, Chrono series, Kingdom Hearts

also recognized globally as SquareSoft, was a Japanese company engaged in both video game developer and publishing activities. Established in 1986 by Masafumi Miyamoto, it originated as a spin-off from the computer game software division of Den-Yu-Sha, an electrical power line construction firm owned by his father. Among the initial prominent team members were designers Hironobu Sakaguchi, Hiromichi Tanaka, Akitoshi Kawazu, and Koichi Ishii, alongside artist Kazuko Shibuya, programmer Nasir Gebelli, and composer Nobuo Uematsu. The company initially concentrated on action games but achieved significant acclaim with the 1987 release of the role-playing game Final Fantasy, which became its signature franchise. Subsequent noteworthy contributors included directors Yoshinori Kitase and Takashi Tokita, designer and writer Yasumi Matsuno, artists Tetsuya Nomura and Yusuke Naora, as well as composers Yoko Shimomura and Masashi Hamauzu.

Beginning with development for personal computers and then exclusively for Nintendo platforms, Square transitioned during the 1990s to create titles for the upcoming PlayStation by Sony Computer Entertainment. Their first major release on PlayStation, Final Fantasy VII, garnered both critical acclaim and commercial success worldwide, significantly enhancing the role-playing genre's prominence and boosting PlayStation's international reputation. Apart from Final Fantasy, Square produced several influential series including SaGa, Mana, Front Mission, Chrono, and Kingdom Hearts. Some former staff members went on to establish studios such as the active Monolith Soft and Mistwalker, as well as the now-defunct companies Sacnoth and AlphaDream.

In 2001, Square encountered financial setbacks following the commercial failure of the feature film Final Fantasy: The Spirits Within, which led to founder Sakaguchi's exit in 2003. This failure also impeded merger discussions with Enix, known for publishing the Dragon Quest series. However, after successful titles like Final Fantasy X and Kingdom Hearts were released, negotiations resumed, culminating in the April 1, 2003 merger that created Square Enix.

Origins

Square was initially established in September 1983 as a software subsidiary under Den-Yu-Sha, an electric power conglomerate headed by Kuniichi Miyamoto.[1][2] His son, Masafumi Miyamoto, who was then working part-time at Keio University, opted to concentrate on software development rather than continuing in the electricity sector.[2][3] Operating out of a former hair salon in Yokohama, the company embraced a philosophy of confronting challenges directly—a concept symbolized by its golf-inspired name—and prioritized teamwork in production.[4]

Contrary to the typical Japanese game development approach at that time, which often depended on individual programmers, Miyamoto envisioned collaborative teams consisting of graphic designers, programmers, and professional writers to advance game creation.[5] Early recruits included university students such as Hironobu Sakaguchi and Hiromichi Tanaka, along with future CEO Hisashi Suzuki.[2][3] While Miyamoto initially intended to hire primarily from Keio University, he expanded recruitment efforts through programming salons that showcased emerging talent.[2]

1985–1987: Initial Titles and the Birth of Final Fantasy

Square's debut game was The Death Trap (1984) for the NEC PC-8801, a text-based adventure and the first title released under the Square label.[6][7] Its follow-up, Will: The Death Trap II, achieved notable commercial success.[5] The company initially concentrated on developing action-oriented games for various PC platforms.[8]

In 1985, Square entered into a licensing agreement with Nintendo to create games for the Family Computer (Famicom), shifting focus to capitalize on the system's reliable hardware.[6] Their inaugural Famicom game was a port of Thexder (1985), succeeded by the original side-scrolling shooter King's Knight (1986).[5][8] During this phase, key personnel such as developers Akitoshi Kawazu and Koichi Ishii, artist Kazuko Shibuya, programmer Nasir Gebelli, and composer Nobuo Uematsu joined the team.[3][9][10][11] Yusuke Hirata was appointed sales manager and subsequently took on publicity responsibilities.[12][13]

In April 1986, Square relocated to offices in Ginza, an expensive commercial district; however, financial constraints soon necessitated moving to more modest premises in Okachimachi.[1][3] The company became independent in September 1986 with capital of ¥10 million and acquired its gaming division from Den-Yu-Sha in December of that year.[1] Hironobu Sakaguchi assumed the role of Director of Planning and Development,[14] while Suzuki joined the board of directors.[15] Although initial efforts on Nintendo's Famicom Disk System were unsuccessful,[3][16] Shigeru Miyamoto encouraged game proposals from directors; Sakaguchi suggested creating an RPG inspired by Enix's hit Dragon Quest (1986).[3]

With approval granted for a development team capped at five members, Sakaguchi led the creation of what would become Final Fantasy, supported by Gebelli, Kawazu, Ishii, Uematsu, Shibuya, and debugger Hiroyuki Ito.[11][17][18] After approximately ten months of development and doubling the initial shipment target to 400,000 units,[3][11] Final Fantasy launched in 1987 to commercial acclaim in Japan and later sold 700,000 copies in North America following its 1989 release.[11][19] Other significant titles released in 1987 included Rad Racer and The 3-D Battles of WorldRunner.[20]

1987–1995: Growth and Key Personnel

The triumph of Final Fantasy paved the way for Final Fantasy II (1988), which introduced many elements that became staples throughout the series. This installment, along with four subsequent Final Fantasy games, were launched on the Famicom and Super Nintendo Entertainment System (Super Famicom), culminating with Final Fantasy VI (1994). These projects marked Square's exclusive development commitment to Nintendo platforms, including their handheld Game Boy. In 1990, Square moved its headquarters to Akasaka in Tokyo before relocating again to Ebisu, Shibuya in 1992. April 1991 saw Square merge with a dormant company as a means to adjust share prices and retroactively set its founding date to July 1966.

To support development costs, Square secured loans from Shikoku Bank, which seconded Tomoyuki Takechi as office manager from 1990 through 1994. By this time, annual sales had reached ¥16 million. In August 1994, Square registered for a public share offering through the Japan Securities Dealers Association. Sakaguchi was promoted to Executive President in 1991; he reduced his hands-on creative involvement to concentrate on corporate management while delegating more responsibilities to his team. Gebelli retired in 1993 after earning royalties from the Final Fantasy franchise. Miyamoto stepped down as President in 1991 but retained significant shareholding; Tetsuo Mizuno succeeded him. Suzuki was appointed Vice President that same year.

Beyond the Final Fantasy series, Square developed other successful franchises. The Japan-exclusive real-time strategy title Hanjuku Hero (1988) offered a comedic take on RPG tropes. Akitoshi Kawazu led development of the Game Boy RPG Makai Toushi SaGa (known internationally as The Final Fantasy Legend) in 1989, which launched the enduring SaGa series. Following Final Fantasy III (1990), Koichi Ishii created Seiken Densetsu: Final Fantasy Gaiden (released internationally as Final Fantasy Adventure) for Game Boy in 1991; this title eventually evolved into the globally recognized Mana. The critically acclaimed Chrono Trigger, a collaboration involving Sakaguchi, Yuji Horii—the creator of Dragon Quest—and artist Akira Toriyama also debuted during this era. Other notable releases included the Western-exclusive Secret of Evermore and Nintendo co-produced Super Mario RPG. Sakaguchi emphasized that although Final Fantasy remained Square's flagship brand, other franchises also contributed significantly to profitability.

The early 1990s brought fresh talent inspired by the success of Final Fantasy. For instance, Yoshinori Kitase contributed as writer and later director on Final Fantasy IV (1991); Tetsuya Nomura began his career as a graphic designer; artists and writers Tetsuya Takahashi and Kaori Tanaka joined; Takashi Tokita became a full-time employee; Hiroyuki Ito started working as a game designer. Chihiro Fujioka co-directed Super Mario RPG, while Kenichi Nishi held minor roles on both it and Chrono Trigger. Masato Kato joined in 1993 as scenario writer for Chrono Trigger. Artist Yusuke Naora made his debut with work on Final Fantasy VI. Scenario writers Kazushige Nojima and Motomu Toriyama also became part of Square during this timeframe.

Square expanded its music division with composers like Kenji Ito contributing to the SaGa and Mana franchises; Hiroki Kikuta working on both the Mana series and standalone projects; Yasunori Mitsuda gaining recognition for his compositions within the Chrono titles; and Yoko Shimomura composing her first score for Live A Live (1994). In 1995, Square transferred its headquarters to Shimomeguro in Meguro.

1995–1999: Transition to PlayStation

After completing Final Fantasy VI and Chrono Trigger, Square began planning the subsequent Final Fantasy installment while entering the growing 3D gaming arena. With the development of Final Fantasy VII, the company shifted its projects to Sony Computer Entertainment's PlayStation, motivated by the affordability of CD-ROMs compared to Nintendo's costly cartridges. This decision led to a fallout with Nintendo; an employee recounted Nintendo instructing Square to "never come back". In 1996, Square released its last Nintendo title, Treasure Hunter G for the Super Famicom, simultaneously launching DreamFactory's Tobal No. 1 on PlayStation. Shortly thereafter, Square entered into a licensing agreement granting Sony exclusive publishing rights for its next six Western market releases.

The development of Final Fantasy VII continued under the direction of Kitase, with Naora as art director, Nomura overseeing character design, and Nojima responsible for the script. Upon its global release in 1997, the game achieved significant commercial success and critical acclaim, boosting Square's international reputation. That same year, Takechi returned as President, succeeding Mizuno. New key personnel included Shinji Hashimoto (producer of FFVII promotions), Yasumi Matsuno (joining after Tactics Ogre to work on Final Fantasy Tactics), and Masashi Hamauzu (specializing in spin-offs and the SaGa series). Sakaguchi assumed the role of executive producer starting with Final Fantasy VIII, with Hashimoto serving as producer. Hirata was promoted to lead producer, spearheading efforts to diversify into new game genres.

During this timeframe, Square introduced several notable franchises: Parasite Eve, adapted from Hideaki Sena's novel; Front Mission, which transitioned from Super Famicom to PlayStation; and the Chocobo spin-off series centered on their iconic mascot. After becoming estranged from Nintendo, Square supported alternative platforms such as WonderSwan and Windows. Toward the end of the PlayStation era, they released titles including Threads of Fate (1999) and Vagrant Story (2000). Additionally, Square developed PlayOnline, an online service platform and digital storefront.

In the late 1990s, Square encouraged younger development teams to experiment with innovative projects on modest budgets, resulting in games like Xenogears, Soukaigi, and Another Mind. Several influential staff members departed during this period due to creative disagreements or desires for independent pursuits; notable departures included Takahashi, Tanaka, Fujioka, Nishi, Kikuta, Mitsuda, and artist Shinichi Kameoka. In April 2000, Suzuki assumed the presidency with Takechi becoming chairman; two external directors—Kenichi Ohmae and Makoto Naruke—were appointed to strengthen international relations and advance digital content initiatives. Yoichi Wada also joined as director and COO. By August 2000, Square was listed on the Tokyo Stock Exchange's first section, solidifying its position among Japan's largest corporations.

2000–2003: The Spirits Within and the concluding phase

While spearheading production on Final Fantasy IX (2000), Sakaguchi simultaneously contributed to Square Pictures' animated feature, Final Fantasy: The Spirits Within. This film was envisioned as Sakaguchi's initial foray into cross-platform narrative development. However, the project significantly overshot its budget, ultimately costing Square and co-producer Columbia Pictures approximately US$137 million. Upon its 2001 release, it earned around $85 million, falling short of expectations and being classified as a box-office bomb. The financial setback severely impacted Square’s fiscal health and resulted in the shutdown of Square Pictures.

In the aftermath of the film’s underperformance and a postponement of Final Fantasy X (2001) for the PlayStation 2, Square experienced its first-ever financial deficit. This situation led to the resignation of Sakaguchi, Takechi, and director Masatsugu Hiramatsu; however, Sakaguchi stayed on as executive producer while the others remained as advisors. Employee morale suffered during this difficult period. By late 2001, company president Suzuki resigned and was succeeded by Wada, with Yosuke Matsuda appointed as Senior Vice President. Composer Kenji Ito also departed to pursue freelance work. Earlier merger negotiations with Enix in 2000 were suspended due to the financial strain caused by the film.

Under Wada’s leadership, Square implemented organizational reforms aimed at optimizing production efficiency and reducing expenses. As the console market shifted away from Microsoft’s Xbox, Square renewed discussions with Nintendo, culminating in the creation of Final Fantasy Crystal Chronicles for the GameCube. Development also commenced on Final Fantasy X-2, notable as the franchise’s first direct sequel; this title marked Sakaguchi’s final credited involvement before his departure in 2003. Concurrently, Square developed Kingdom Hearts (2002), a collaborative project with The Walt Disney Company that fused Disney characters with Final Fantasy themes and introduced Tetsuya Nomura as director. Following this project, composer Yoko Shimomura transitioned to freelance work.

In 2002, Square launched the Japanese edition of Final Fantasy XI, its inaugural MMORPG. This title was conceived by Sakaguchi and developed by the team behind Chrono under producer Hiromichi Tanaka. Its first expansion pack represented producer Kato’s final contribution before he too became a freelancer.

Buoyed by the commercial triumphs of Final Fantasy X and Kingdom Hearts, Square and Enix resumed merger discussions. Wada characterized the union as a joining of two companies "at their peak." Some concerns emerged from Shigeru Miyamoto regarding potential dilution of his controlling interest; these were addressed by revising the share exchange ratio to one Square share for 0.81 Enix shares. The merger officially took effect on April 1, 2003, forming Square Enix, with Enix as the surviving entity and Square absorbed into it. Approximately 80% of Square’s workforce transitioned to the new company. The last title released under the Square name was the Japanese version of Final Fantasy X-2.

Development organization

During the integration process with Enix, Takashi Oya from Deutsche Securities highlighted differences between Enix’s reliance on outsourcing and Square’s preference for internal development teams. In its early days during the 1980s, Square operated with a small group where personnel frequently shifted roles; this evolved into two main production teams led by Sakaguchi and Tanaka. After releasing Final Fantasy IV, Sakaguchi reorganized these teams to specialize in series such as Final Fantasy, SaGa, and Mana. An additional studio was established in Osaka in 1990, debuting with Final Fantasy Legend III (1991).

By 1997, Square had expanded to eight development divisions, including two located in Osaka. In 1998, these divisions were consolidated into Production Departments, leading to the closure of the Osaka branch. A further restructuring in 2002 aimed to enhance cooperation among departments and increase flexibility in personnel assignments; prominent figures such as Kitase, Kawazu, Tanaka, Matsuno, and Hirata assumed leadership roles. Following the merger with Enix, Square’s eight divisions were merged with two divisions from Enix to form a unified structure.

Publishing and localization

Square mainly handled the publication of its games within Japan and occasionally took on publishing duties for third-party titles. During the 1980s and early 1990s, its presence in Western markets was minimal, largely due to the low popularity of RPGs in North America and limited distribution channels in Europe. Nintendo of America published the original Final Fantasy in North America in 1990; however, subsequent sequels were initially not localized for Western audiences. Capcom delegated the publishing and localization responsibilities for Breath of Fire to Square. Eventually, Square's Redmond office was closed, with some employees opting not to relocate.

Without an internal localization team at first, Square relied on external translators until negative feedback on the Final Fantasy VII localization prompted the creation of an in-house department that expanded over time. Localization efforts faced hurdles such as handling extensive text content, addressing cultural differences, navigating censorship concerns, and integrating voice acting starting with titles like Final Fantasy X. Prominent figures in localization included Kaoru Moriyama, Ted Woolsey, Michael Basket, Richard Honeywood, and Alexander O. Smith.

A number of games remained exclusive to Japan due to their complex design, subpar graphical standards, or technical limitations. In the 1990s, Sony published Square’s initial six PlayStation titles under contractual agreements. Eidos Interactive managed Windows adaptations of Final Fantasy VII and VIII. Within Europe, Square’s local division self-published mainline Final Fantasy entries and collaborated with companies such as Eidos, Crave Entertainment, and Infogrames for publishing or distribution purposes.

Subsidiaries

Square founded Square Soft in Redmond, Washington in 1989 to support Western development and publishing efforts, releasing select games under the "SquareSoft" label. As the company transitioned projects to PlayStation in 1994, it established a second Western R&D branch named Square LA in August 1995 located in Marina del Rey, California, which was renamed Square USA in October 1996. Square Soft developed Secret of Evermore for Super Nintendo in 1995 before relocating to Costa Mesa, California near Square USA. In 1997, a second Square USA office opened in Honolulu, Hawaii, focusing on interactive entertainment research and contributing CGI work for Parasite Eve and Final Fantasy IX. Square Europe was launched in 1998 based in London, concentrating on publishing activities across Europe.

In 1996, Square introduced the Aques publishing label—standing for "Advanced QUality Entertainment and Sports"—to expand beyond role-playing genres. That same year saw the creation of DigiCube, a distribution firm aimed at convenience store outlets. DigiCube broadened its scope to include book publishing, stocking third-party games, and releasing titles under its own brand. Although DigiCube continued operations after the Square Enix merger, it ultimately filed for bankruptcy in 2004 due to declining sales.

By 1999, Square had established specialized subsidiaries: Square Visual Works for CGI animation production; Square Sounds handling music and sound effects; Squartz focusing on quality assurance and support; and Square Next dedicated to smaller-scale projects. Following the commercial success of Final Fantasy VII in 1997, Hironobu Sakaguchi founded the CGI film studio Square Pictures in Hawaii to develop The Spirits Within and advance CGI technologies. In 2001, Square Pictures merged into Visual Works. The Hawaiian studio created the CGI short "Final Flight of the Osiris," featured within the 2003 anthology film The Animatrix, but closed down in 2002 after failing to secure a partnership with a film studio.

In 2002, Square Next was rebranded as The Game Designer Studio to focus on Nintendo console titles without impacting Sony platform projects; it was later reintegrated into Square Enix after completing Crystal Chronicles, renamed SQEX Corporation before being dissolved in 2010. To reduce costs, Square Sounds was absorbed into the main company division in March 2002. The original Square Soft subsidiary was renamed Square Enix Inc. following the merger with Enix in 2003. Other subsidiaries were consolidated into Square Enix with Visual Works becoming an internal department.

On May 1, 1998, Square entered a joint venture with Electronic Arts: under this arrangement, Square Electronic Arts published Square titles across North America while Electronic Arts Square handled EA releases within Japan. Ownership stakes were divided with Square holding 70% of Square Electronic Arts due to its leading role. Electronic Arts Square developed the PlayStation 2 launch title X-Squad. Both joint ventures concluded on March 31, 2003 alongside the formation of Square Enix; each company acquired the other's shares. Upon dissolution, Square regarded the partnership as successful.

Affiliates and acquisitions

From 1986 to 1988, Square spearheaded a consortium of developers under the collective name Disk Original Group (DOG), which included companies such as HummingBirdSoft, System Sacom, Microcabin, Carry Lab, Thinking Rabbit, and Xtalsoft. This collaboration aimed to create titles for the Famicom Disk System by sharing financial burdens among members. However, by 1988, the Famicom Disk System was rendered obsolete due to improvements in ROM cartridge technology. In January 1994, Square purchased the developer Cobra Team, renaming it Solid to facilitate cooperation with external development teams. The following year, Square launched DreamFactory as an affiliated studio specializing in fighting games for PlayStation consoles; this studio became independent in 2001 after Square sold its shares. Additionally, in 1998, Square established Escape using personnel from DreamFactory; Escape’s sole release was Driving Emotion Type-S (2000) before it was dissolved in 2003.

Square also held ownership in Lightweight, the studio behind Bushido Blade, founded in 1995 but later sold to Forside in 1999. G-Craft, the original creator of Front Mission, initially worked alongside Square’s Solid subsidiary before being fully acquired and integrated into Square during the production of Front Mission 2 in 1997. Other affiliates active between the early 1990s and 2000 included font design firm Kusanagi as well as developers Positron and Luciola. In 2002, Square acquired Quest Corporation—renowned for Ogre Battle—and repurposed it as a production division; their first output under Square was Final Fantasy Tactics Advance (2003).

Related studios

Numerous ex-Square personnel went on to establish influential studios and enterprises. In 1995, Nishi founded Love-de-Lic, which produced three titles including Moon: Remix RPG Adventure. Alumni from Love-de-Lic subsequently created studios such as Skip Ltd. (known for Chibi-Robo!) and Punchline (creators of Rule of Rose). Seeking greater creative autonomy beyond Square's corporate structure, Kikuta founded Sacnoth in 1997, a studio recognized for the Shadow Hearts series; after releasing Koudelka, he departed in 1999 and established the music label Nostrilia. Prominent developers from Xenogears, Takahashi and Tanaka, formed Monolith Soft in 1999 to pursue projects independent from the Final Fantasy franchise, developing titles under the Xeno brand.

In 2000, Kameoka alongside other staff from Legend of Mana (1999) founded Brownie Brown, collaborating with Square Enix on projects like Sword of Mana (2003). Mizuno co-founded AlphaDream with Fujioka that same year; this studio became known for the successful Mario & Luigi series. Former members of Square Pictures, including co-director Motonori Sakakibara of The Spirits Within, established Sprite Animation Studios in 2002. After his departure from Square, Takechi launched the music label Dreamusic in 2001 alongside Kazunaga Nitta. Composer Mitsuda founded Procyon in 2001 to better manage his health while continuing his work. Following his resignation as president in 2001, Sakaguchi founded Mistwalker in 2004, producing acclaimed titles such as Blue Dragon and Terra Wars, along with several standalone projects.

See also

Further reading

External links

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  8. ↑ 8.0 8.1 Cite error: Invalid <ref> tag; no text was provided for refs named SakaguchiForbes
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  10. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named FFVillustrator
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  15. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named SuzukiInfo
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  20. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named NextGenSakaguchi
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