Square Enix reported big losses from subsidiary companies, Tokyo RPG Factory and Studio Istolia, in its latest financial results.
Tokyo RPG Factory
Tokyo RPG Factory was founded in 2014 with the goal of satisfying gamers who grew up playing RPGs in the ’90s. The studio’s first game was announced as Project Setsuna, which would end up being the 2016 title I Am Setsuna. The company’s second title Lost Sphear released in Japan in October 2017 as a spiritual successor to I Am Setsuna. The studio’s third and latest title is the action RPG Oninaki, which released for the PS4, Switch, and PC in August 2019.
The financial results show that Tokyo RPG Factory had a net loss of 154.33 million yen. During the same term from the previous fiscal year, Tokyo RPG Factory saw a net income of 88.39 million yen.
Square Enix first announced the establishment of Studio Istolia in February 2017. Helmed by longtime Tales of series producer Hideo Baba, the studio announced its first project, Project Prelude Rune. However, after Baba left Square Enix and Studio Istolia in April 2019, the subsidiary company and project were officially canceled in the following month.
While Studio Istolia was shut down last May, Square Enix continues to feel the slow burn from its losses. In the latest quarter, Studio Istolia reported a net loss of 26.88 million yen. During the same term of the previous fiscal year, the subsidiary company reported a net loss of 592.02 million yen.