Back in 2008 and a few months before the Eidos acquisition, Square Enix opened a video game studio in Los Angeles. Fumiaki Shiraishi, one of the designers on Final Fantasy Crystal Chronicles: My Life As A King, was leading Square Enix LA.
"We do like to have one full-size project if possible, and then have the downloadables on the side. We’re still in the process of trying to figure out what the first title will be," Shirashi said while discussing the studio’s plans with Gamasutra. "Right now we’re still in the very early phase of testing out gameplay stuff and testing out the technology. The scope of the game, and how it’s going to be sold, is going to come a little bit later."
The studio had two goals: test new technology for the company’s Japanese division and create new games. Project Dropship, which we revealed earlier, was one of the titles cooking inside Square Enix. The game was being made for PlayStation Network and Xbox Live Arcade with the Gamebryo Engine. Sources tell Siliconera development of Project Dropship ceased in March. The reason why is because Square Enix closed the Los Angeles studio. At that time, we understand there were between 10-20 employees, many of which were artists. Project Dropship was not completed, but it was far into development. We reached out to Square Enix for further details and confirmation, but did not receive a comment by press time.