After less than two years in operation, Square Enix has closed the doors on Shinra Technologies – the Yoichi Wada led cloud-based gaming subsidiary based out of New York.
In a press release today Square Enix explained the reason for Shinra’s closure, “As a cloud platform operator, [Shinra Technologies] has been trying to raise funds necessary for further business operations from third party investors. However, STI has found no prospective investors at this point, and therefore has to discontinue its business.”
As a result, Square Enix as a company will post an “extraordinary loss” of approximately two billion yen in the consolidated financial results for the current fiscal year ending March 31, 2016 according to their report.
Shinra Technologies was working with developers Hardsuit Labs, Camouflaj and Human Head on a prototype development program along with beta tests in both Texas and Kansas City last year. There is currently no word on what will happen to Wada or any of the known Shinra staff or if Square Enix will pursue cloud gaming further in the future.