Square Enix established Shinra Technologies, a subsidiary to explore the cloud gaming space back in September 2014. It has been announced that the company will be shutting down.
Shinra Technologies, based in New York and Tokyo, will both be shutting down with the New York branch closing on March 31, 2019 and the Tokyo branch in June 30, 2016. The press release shared the following quote under reason of the dissolution:
As a cloud platform operator, [the company] has been trying to raise funds necessary for further business operations from third party investors. However, [Shinra Technologies] has found no prospective investors at this point, and therefor has to discontinue its business.
Influence on the Company’s Consolidated Financial Results:
The Company will book an extraordinary loss of approximately 2 billion yen in the consolidated financial results for fiscal year ending March 31, 2016. (Out of the above-mentioned amount, the Company has already posted a Loss on Liquidation of Subsidiaries and Affiliates of approximately 1.1 billion yen in the consolidated financial results for the six-month period ended Spetember 30, 2015.)