Square Enix Holdings (the umbrella corporation for all the group's companies and studios) announces internal organisational moves. The studio they already owned, Luminous Productions (the creators of the ill-fated Forspoken) is merging with the Square Enix studio entirely, losing the name along the way.
According to a brief statement on the company's official website, the move serves to strengthen the group's projects in the medium term, drawing on the strengths of both teams to form a single development unit.
The merger is part of the Company's efforts to further bolster the competitive prowess of the Group's development studios, a goal set forth under its current medium-term business strategy. Square Enix Co., Ltd. has developed numerous AAA high-definition (HD) games and possesses a wealth of intellectual property (IP) and content. Luminous Productions Co., Ltd. is meanwhile equipped not only with AAA title development capabilities but also technical expertise in areas such as game engine development. Combining the two entities will further enhance the Group's ability to develop HD games.
Of course, Forspoken's disastrous sales performance must have played a role in the decision. It is not yet known whether the merger has resulted in any job losses at the now defunct Luminous, but we'll keep an eye out for further developments regarding this new path within Square Enix.