Shinra Technologies is shutting up shop.
Square Enix has announced the dissolution of its cloud technology business, Shinra Technologies. In a new financial release, the publisher warned investors to expect an “extraordinary loss” of approximately ¥2 billion yen in the current quarter thanks to the costs of liquidation.
“STI, as a cloud platform operator, has been trying to raise funds necessary for further business operations from third party investors,” Square Enix said.
“However, STI has found no prospective investors at this point, and therefore has to discontinue its business.”
The publisher expects the US arm of the business to close by March 31, with the Japanese branch to follow sometime before June 30.
Named for the villainous corporation in Final Fantasy 7, Shinra was a pet project of former Square Enix CEO Yoich Wada, who turned his attention to the cloud gaming firm after leaving the publisher’s executive team.
Cloud gaming has had a pretty rough time taking off. Sony’s PlayStation Now seems to be the only survivor of what seemed to be a promising technology, having absorbed both Gaikai and OnLive along the way.