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Square Electronic Arts

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Adapted from the English Wikipedia article Square Electronic Arts, available under CC BY-SA 4.0Updated 30 November 202517 sources
Square Co., Ltd.
Company typePublic (before merger)
IndustryVideo games
Founded1986; 40 years ago (1986)
FounderMasafumi Miyamoto
FateMerged with Enix to form Square Enix
Headquarters
Tokyo (various locations: Ginza, Akasaka, Ebisu, Shimomeguro)
,
Japan
Area served
Worldwide
Key people
Masafumi Miyamoto (founder), Hironobu Sakaguchi (Director of Planning and Development, later Executive President), Hisashi Suzuki (Director, Vice President)
ProductsFinal Fantasy series, SaGa series, Mana series, Front Mission, Chrono series, Kingdom Hearts
Number of employees
Not specified
ParentNone (independent until merger)

also recognized globally as SquareSoft, was a Japanese video game developer and publisher established in 1986 by Masafumi Miyamoto. He separated the computer game software division from Den-Yu-Sha, an electric power line construction firm owned by his father. Among the initial core team were designers Hironobu Sakaguchi, Hiromichi Tanaka, Akitoshi Kawazu, Koichi Ishii, artist Kazuko Shibuya, programmer Nasir Gebelli, and composer Nobuo Uematsu. The company initially concentrated on action games but gained significant recognition with the 1987 role-playing title Final Fantasy, which became its signature series. Subsequent influential figures 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.

Square's development began on personal computers before moving exclusively to Nintendo platforms. In the 1990s, the company transitioned to Sony’s emerging PlayStation. Their landmark PlayStation release, Final Fantasy VII, achieved worldwide critical acclaim and commercial success, credited with broadening the RPG genre’s audience and enhancing PlayStation’s global market presence. Beyond Final Fantasy, Square created and published prominent franchises such as SaGa, Mana, Front Mission, Chrono, and Kingdom Hearts. Several former employees went on to establish studios like Monolith Soft, Mistwalker, as well as the now-defunct companies Sacnoth and AlphaDream.

In 2001, Square encountered financial strain due to the poor commercial performance of the feature film Final Fantasy: The Spirits Within, which led to founder Sakaguchi leaving in 2003. This financial setback delayed merger discussions with rival publisher Enix, known for the Dragon Quest series. Nevertheless, after successes with titles such as Final Fantasy X and Kingdom Hearts, talks resumed, culminating in the April 1, 2003 merger that created Square Enix.

Origins

Square originated in September 1983 as a software branch of Den-Yu-Sha, an electric power company directed by Kuniichi Miyamoto.[1][2] His son, Masafumi Miyamoto, who was then a part-time student at Keio University, opted to concentrate on software creation rather than continuing in the electricity sector.[2][3] Operating out of a former hair salon in Yokohama, Square embraced a philosophy of confronting challenges directly, symbolized by its golf-inspired name and collaborative production approach.[4]

Contrary to the common Japanese practice of individual programmers developing games independently, Miyamoto envisioned assembling teams comprising graphic designers, coders, and writers to push game development forward.[5] Early recruitment efforts brought in university students Hironobu Sakaguchi, Hiromichi Tanaka, and Hisashi Suzuki (who would later become CEO), identified through a salon event Miyamoto organized to discover outstanding programming talent.[2][3]

1985–1987: Early Titles and the Launch of Final Fantasy

Square's first undertaking involved an unauthorized adaptation of the television game show Torin-ingen, which was ultimately canceled due to licensing complications.[3] Their earliest finished product was The Death Trap (1984) for the NEC PC-8801, a text-based adventure set in Africa, succeeded by the commercially popular sequel Will: The Death Trap II.[5] Initial releases predominantly consisted of action games designed for personal computer platforms.[6]

In 1985, Square secured a licensing agreement with Nintendo to develop software for the Family Computer (Famicom), marking a transition from PC development to take advantage of the console’s consistent hardware environment.[7][8] Their debut Famicom title was a port of Thexder (1985), followed by the original side-scrolling shooter King's Knight (1986).[5][6] The company expanded its creative team by bringing on board developers Akitoshi Kawazu and Koichi Ishii, artist Kazuko Shibuya, programmer Nasir Gebelli, and composer Nobuo Uematsu.[3][9][10][11] Yusuke Hirata joined as sales manager and later transitioned into publicity management.[12]

In April 1986, Square relocated its offices to Ginza but soon reduced its space due to high rental costs. It became an independent entity in September with capital amounting to ¥10 million and acquired its gaming division from Den-Yu-Sha in December.[1] Hironobu Sakaguchi was appointed Director of Planning and Development,[13] while Hisashi Suzuki took on a directorial role.[14] Financial difficulties arose after several unsuccessful titles on Nintendo's Famicom Disk System.[3][15] Shigeru Miyamoto requested game proposals from his directors; Sakaguchi responded with an RPG concept inspired by Enix's hit Dragon Quest (1986).[3]

Miyamoto approved this RPG project, assigning a five-member team led by Sakaguchi that included Gebelli, Kawazu, Ishii, and Uematsu.[3] The development of Final Fantasy spanned roughly ten months with intermittent progress and support from Tanaka’s group. Confident in the title’s potential, shipments were increased from 200,000 to 400,000 units.[3][11] Upon its 1987 release, it sold over 400,000 copies domestically and achieved greater success in North America with 700,000 copies sold following its 1989 launch.[16] Other significant successes that year included Rad Racer and The 3-D Battles of WorldRunner.[17]

1987–1995: Growth and Key Personnel

The triumph of Final Fantasy paved the way for Final Fantasy II (1988), which introduced numerous recurring elements that became series staples. This installment, along with four additional Final Fantasy games released on the Famicom and Super Nintendo Entertainment System (Super Famicom), culminated in the critically acclaimed Final Fantasy VI (1994). These projects were part of Square’s exclusive development partnership with Nintendo consoles, including portable systems like the Game Boy. In 1990, Square moved its headquarters to Akasaka before relocating again in 1992 to Ebisu in Shibuya. In April 1991, Square merged with an inactive company to facilitate share price adjustments, retroactively dating its founding to July 1966.

To finance its growing operations, Square obtained loans from Shikoku Bank; escalating expenses led to Tomoyuki Takechi being seconded as office manager from 1990 until 1994. By this period, annual sales had reached ¥16 million. In August 1994, Square registered with the Japan Securities Dealers Association to initiate public share offerings. Sakaguchi assumed the role of Executive President in 1991, gradually shifting focus towards corporate administration while delegating creative responsibilities. Nasir Gebelli retired in 1993 after securing royalties from the Final Fantasy franchise. Miyamoto stepped down as President that same year but remained a significant shareholder; Tetsuo Mizuno succeeded him. Hisashi Suzuki was promoted to Vice President.

Alongside the Final Fantasy series, Square developed other successful franchises. The Japan-exclusive real-time strategy title Hanjuku Hero (1988) humorously parodied RPG tropes. Akitoshi Kawazu led development of the Game Boy RPG Makai Toushi SaGa (known internationally as The Final Fantasy Legend) in 1989, which initiated the ongoing SaGa series. Following Final Fantasy III (1990), Koichi Ishii created Seiken Densetsu: Final Fantasy Gaiden (released outside Japan as Final Fantasy Adventure) for Game Boy, launching the internationally recognized Mana franchise. The celebrated title Chrono Trigger, developed through collaboration between Sakaguchi, Yuji Horii (creator of Dragon Quest), and artist Akira Toriyama, also debuted during this era. Additional notable releases included the Western-exclusive Secret of Evermore and the Nintendo co-produced title Super Mario RPG. Sakaguchi emphasized that while Final Fantasy remained their flagship brand, other series contributed significantly to Square’s financial stability.

By the early 1990s, new talent inspired by the success of Final Fantasy had joined Square. Key figures included writer and director Yoshinori Kitase; graphic designer Tetsuya Nomura; artists and writers Tetsuya Takahashi and Kaori Tanaka (known professionally as Soraya Saga); full-time employee Takashi Tokita; and designer Hiroyuki Ito. Chihiro Fujioka co-directed Super Mario RPG, while Kenichi Nishi had minor contributions on both Chrono Trigger and Super Mario RPG. Scenario writer Masato Kato joined in 1993 for work on Chrono Trigger. Artist Yusuke Naora made his debut on Final Fantasy VI, while scenario writers Kazushige Nojima and future director Motomu Toriyama also became part of the team.

Square bolstered its music department by bringing in composers such as Kenji Ito—who contributed to both the SaGa and Mana series—and Hiroki Kikuta, known for his work on the Mana titles and independent projects. Acclaimed sound designer Yasunori Mitsuda gained recognition for his compositions on the Chrono games. Former Capcom composer Yoko Shimomura made her debut with Square on the 1994 release of Live A Live. In 1995, Square relocated its headquarters once more to Shimomeguro in Meguro.

1995–1999: Transition to PlayStation

Following the releases of Final Fantasy VI and Chrono Trigger, Square embarked on developing the next installment in the Final Fantasy series, venturing into 3D gaming. For Final Fantasy VII, the company shifted development to Sony Computer Entertainment's PlayStation, drawn by the cost-effectiveness of CD-ROMs compared to Nintendo's expensive cartridges. This decision strained Square's relationship with Nintendo; an employee recounted Nintendo's directive for Square to "never come back". In 1996, Square completed its final Nintendo title with Treasure Hunter G for the Super Famicom and simultaneously launched 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 team for Final Fantasy VII featured Kitase as director, Naora as art director, Nomura as lead artist, and Nojima as writer. Released in 1997, the game achieved worldwide commercial and critical acclaim, significantly boosting Square's global presence. That same year, Takechi succeeded Mizuno as President. New key personnel included Shinji Hashimoto (promotions producer for FFVII), Yasumi Matsuno (recruited from Quest Corporation and responsible for Final Fantasy Tactics), and Masashi Hamauzu (joined in 1996, contributing to spin-offs and the SaGa series). Sakaguchi assumed the role of executive producer starting with Final Fantasy VIII, with Hashimoto serving as producer. Hirata advanced to lead producer, focusing on expanding Square's range of offerings.

During this era, Square released titles such as Parasite Eve, adapted from Hideaki Sena's novel; Front Mission, which transitioned from Super Famicom to PlayStation; and the Final Fantasy derivative Chocobo. Distanced from Nintendo, Square supported alternative platforms including WonderSwan and Windows. Towards the end of the PlayStation's lifecycle, it launched games like Threads of Fate (1999) and Vagrant Story (2000), while simultaneously developing PlayOnline—a digital marketplace and online service platform.

In the late 1990s, Square initiated a program empowering younger development teams to create innovative projects on smaller budgets, resulting in titles such as Xenogears, Soukaigi, and Another Mind. Several prominent staff members departed due to creative disagreements or personal pursuits; notable exits included Takahashi, Tanaka, Fujioka, Nishi, Kikuta, Mitsuda, and artist Shinichi Kameoka. In April 2000, Suzuki was appointed President with Takechi becoming chairman. To enhance international relations and foster digital content growth, two external directors—Kenichi Ohmae and Makoto Naruke—joined the board. Yoichi Wada was brought on as director and COO. By August 2000, Square secured a listing on the Tokyo Stock Exchange's first section reserved for major corporations.

2000–2003: The Spirits Within and Final Years

Alongside producing Final Fantasy IX (2000), Sakaguchi spearheaded Square Pictures' production of the Final Fantasy feature film, Final Fantasy: The Spirits Within. Intended as a cross-media endeavor, this project exceeded its budget significantly—costing Square and co-producer Columbia Pictures approximately US$137 million. Upon its 2001 release, the film grossed only $85 million and was deemed a box-office bomb, severely affecting Square's financial stability and leading to the closure of Square Pictures.

The monetary challenges stemming from The Spirits Within combined with delays in releasing Final Fantasy X (2001) resulted in Square’s first recorded loss. This prompted Sakaguchi, Takechi, and director Masatsugu Hiramatsu to resign from their positions. Sakaguchi retained his role as executive producer for the Final Fantasy franchise while Takechi and Hiramatsu transitioned to external consultancy roles. Suzuki stepped down as President late in 2001, with Wada assuming the position; Yosuke Matsuda was promoted to Senior Vice President. During this period, composer Kenji Ito departed to pursue freelance opportunities. Concurrently, merger discussions between Enix and Square were suspended due to these financial setbacks.

Under Wada’s leadership, Square undertook organizational restructuring aimed at streamlining production processes and reducing expenses. In response to evolving dynamics within the console war, particularly Microsoft’s Xbox, Square renewed negotiations with Nintendo that led to developing Final Fantasy Crystal Chronicles for the GameCube in late 2001. Development also commenced on Final Fantasy X-2, marking the franchise’s first direct sequel and representing Sakaguchi’s final credited contribution before his departure in 2003.

During this timeframe, Square produced Kingdom Hearts (2002), directed by Nomura in partnership with The Walt Disney Company, blending Disney characters with elements from the Final Fantasy universe. Following this project, composer Shimomura left to work freelance. The Japanese launch of Final Fantasy XI (2002), Square’s inaugural MMORPG, was overseen by Ishii and conceptualized by Sakaguchi; its initial expansion coincided with Kato’s exit from the company.

After experiencing strong sales from both Final Fantasy X and Kingdom Hearts, Square and Enix resumed merger discussions which culminated in forming Square Enix on April 1, 2003. Despite early concerns voiced by Miyamoto regarding stock dilution effects, an adjusted share exchange ratio secured approval. Enix functioned as the surviving entity; nearly 80% of Square’s workforce integrated into the new organization. The last title released under Square prior to merging was the Japanese edition of X-2.

Development organization

At the time of the merger with Enix, Takashi Oya from Deutsche Securities pointed out the contrast between Enix's reliance on outsourcing and Square's preference for internal development. Initially, Square operated without a formal development framework; its small team of ten members frequently switched roles. This setup later transformed into two main production teams overseen by Sakaguchi and Tanaka. Following the release of Final Fantasy IV, Sakaguchi reorganized the group to concentrate on the Final Fantasy, SaGa, and Mana franchises. In 1990, a secondary studio was established in Osaka, which launched its first project with Final Fantasy Legend III in 1991.

By 1997, Square had expanded to eight distinct development divisions, including two located in Osaka. The following year, these divisions were restructured into Production Departments, leading to the closure of the Osaka office. A reorganization in 2002 sought to enhance inter-departmental cooperation and agility; at that time, leadership included Kitase, Kawazu, Tanaka, Matsuno, and Hirata. After merging with Enix, the combined entity consolidated these eight divisions alongside two from Enix into a unified company structure.

Publishing and localization

Square predominantly self-published its titles within Japan and occasionally managed third-party releases. Its presence in Western markets during the 1980s and early 1990s was limited due to the relatively low popularity of RPGs in North America and constrained distribution in Europe. Nintendo of America handled the North American release of the original Final Fantasy in 1990; however, subsequent sequels were not localized at that time. Capcom entrusted Square with publishing and localizing Breath of Fire in North America. The Redmond office eventually closed after some localization personnel opted not to relocate to California.

Originally lacking an internal localization division, Square outsourced translation work until criticism following Final Fantasy VII prompted the establishment of an in-house team that gradually expanded from just two staff members. Localization efforts faced challenges such as managing extensive text content, addressing cultural differences, navigating censorship concerns, and incorporating voice acting beginning with Final Fantasy X. Notable contributors to localization included Kaoru Moriyama, Ted Woolsey, Michael Basket, Richard Honeywood, and Alexander O. Smith.

Several games remained exclusive to Japan due to their complex designs and technical constraints. During the 1990s, Sony published Square’s first six PlayStation titles under contractual agreements. Eidos Interactive handled Windows ports for Final Fantasy VII and VIII. In Europe, Square’s local branch managed self-publishing for multiple mainline games while collaborating with partners like Eidos, Crave Entertainment, and Infogrames for distribution or publishing duties.

Subsidiaries

Square founded Square Soft in Redmond, Washington in 1989 to facilitate Western development support and publishing activities. Following the establishment of North American offices, select releases were published under the "SquareSoft" label. As development shifted toward PlayStation platforms in 1994, a second Western research and development subsidiary was created: Square LA opened in August 1995 in Marina del Rey, California and was renamed Square USA in October 1996. Square Soft developed Secret of Evermore (1995) for Super Nintendo before relocating near Square USA’s offices in Costa Mesa, California. In 1997, another branch of Square USA was launched in Honolulu, Hawaii focusing on interactive entertainment research; this location contributed CGI work for titles such as Parasite Eve and Final Fantasy IX. Square Europe was established in London in 1998 with a focus on publishing across European markets.

In 1996, Square introduced Aques—a brand name derived from "Advanced QUality Entertainment and Sports"—to expand beyond role-playing game offerings. That same year saw the creation of DigiCube, a distribution company utilizing convenience stores as retail outlets. DigiCube broadened its business into book publishing, stocked third-party games, and briefly released products under its own brand name. Although DigiCube continued operations after the Square Enix merger, it filed for bankruptcy in 2004 amid declining sales.

The year 1999 marked the launch of specialized subsidiaries: Square Visual Works for CGI animation production; Square Sounds dedicated to audio creation; Squartz handling quality assurance and support; and Square Next focusing on smaller-scale game projects. Following the success of Final Fantasy VII (1997), Sakaguchi established the CGI film studio Square Pictures in Hawaii to produce The Spirits Within and advance computer graphics technology. By 2001, Square Pictures had merged into Visual Works. The Hawaiian branch also produced the CGI short "Final Flight of the Osiris," featured in the 2003 anthology film The Animatrix. This facility closed in 2002 after unsuccessful attempts to secure a partnership with a film studio.

In 2002, Square Next was rebranded as The Game Designer Studio through joint ownership involving Product Development Division 2 and Kawazu; this entity developed Nintendo titles without affecting Sony platform projects. After completing work on Crystal Chronicles, it was reintegrated into Square Enix and dissolved by 2010. In March 2002, Square Sounds merged back into the main company as part of cost reduction efforts. The original Square Soft subsidiary was renamed Square Enix Inc. following the merger with Enix in 2003. Other subsidiaries were consolidated under Square Enix management with Visual Works becoming a dedicated department.

On May 1, 1998, Square entered a joint venture with Electronic Arts forming two companies: Square Electronic Arts published Square titles across North America while Electronic Arts Square handled EA releases within Japan. This partnership followed EA’s termination of a similar agreement with Victor in December 1997. Ownership was divided with Square holding a 70% stake in Square Electronic Arts and EA owning 30%. Electronic Arts Square developed the PlayStation 2 launch title X-Squad. Both joint ventures were dissolved on March 31, 2003 coinciding with the formation of Square Enix; each partner acquired the other's shares during this process. According to a February press release from Square, this collaboration was considered successful overall.

Affiliates and acquisitions

From 1986 to 1988, Square spearheaded the Disk Original Group (DOG), a consortium of developers such as HummingBirdSoft, System Sacom, and others, aimed at creating titles for the Famicom Disk System. This partnership combined financial efforts to mitigate the substantial individual expenses involved. However, by 1988, the Famicom Disk System was rendered obsolete due to technological improvements in Famicom ROM cartridges. In January 1994, Square took over Cobra Team, rebranding it as Solid to facilitate collaboration with outside developers. The following year, Square launched DreamFactory as an affiliate dedicated to producing fighting games for the PlayStation and PlayStation 2; DreamFactory became independent in 2001 after Square divested its ownership. Escape, a subsidiary formed in 1998 from DreamFactory personnel, was dissolved in 2003 after releasing only Driving Emotion Type-S (2000).

Square maintained an investment in Lightweight, the developer behind Bushido Blade, founded in 1995; this stake was sold to Forside in 1999. Initially operating independently, G-Craft—the studio responsible for Front Mission—worked alongside Square's Solid before being acquired in 1997 during the development of Front Mission 2. Other affiliates throughout the late 1990s into 2000 included font company Kusanagi and developers Positron and Luciola. In 2002, Square acquired Quest Corporation, famed for the Ogre Battle series, converting it into a production division with its first project being Final Fantasy Tactics Advance (2003).

Related studios

A number of prominent studios were founded by former Square employees. In 1995, Nishi established Love-de-Lic, which created three games including Moon: Remix RPG Adventure. Alumni from Love-de-Lic subsequently founded companies such as Skip Ltd. (known for Chibi-Robo!) and Punchline (creators of Rule of Rose). Kikuta departed from Square’s corporate structure to launch Sacnoth in 1997, recognized for the Shadow Hearts series; he left in 1999 after completing Koudelka and went on to found the music label Nostrilia. Several developers involved with Xenogears, including Takahashi and Tanaka, formed Monolith Soft in 1999 to pursue creative projects beyond the Final Fantasy franchise under the Xeno brand.

Kameoka and other team members from Legend of Mana (1999) established Brownie Brown in 2000, which later partnered with Square Enix on titles like Sword of Mana (2003). Mizuno founded AlphaDream in the same year, responsible for the acclaimed Mario & Luigi series. Former staff from Square Pictures, including co-director Motonori Sakakibara of The Spirits Within, created Sprite Animation Studios in 2002. After leaving Square, Takechi launched the music label Dreamusic in 2001 alongside Kazunaga Nitta; Mitsuda also founded Procyon that year due to health concerns. Sakaguchi stepped down as president in 2001 but returned to game development by founding Mistwalker in 2004, known for producing the Blue Dragon and Terra Wars series among other projects.

See also

Further reading

External links

  1. ↑ 1.0 1.1 Cite error: Invalid <ref> tag; no text was provided for refs named Foundation
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  6. ↑ 6.0 6.1 Cite error: Invalid <ref> tag; no text was provided for refs named SakaguchiForbes
  7. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named SquareInfo1998
  8. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named PCbook
  9. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named IwataKawazu
  10. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named FFVillustrator
  11. ↑ 11.0 11.1 Cite error: Invalid <ref> tag; no text was provided for refs named 1UPff
  12. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named Hirata
  13. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named bio
  14. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named SuzukiInfo
  15. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named RetroDisk
  16. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named FFna
  17. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named NextGenSakaguchi

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