Square Enix to Shut Down Game Streaming Division, Shinra Technologies

Square Enix has announced that its cloud gaming division, Shinra Technologies will be shut down.

The news comes via a financial release from the publisher warning of "an extraordinary loss."

"STI [Shinra Technologies Inc], as a cloud platform operator, has been trying to raise funds necessary for further business operations from third party investors. However, STI has found no prospective investors at this point, and therefore has to discontinue its business," the release reads. The US arm of Shinra will shut by March 31 and the Japanese branch will dissolve by June 30.

The cloud gaming business was named after the evil corporation in classic Square Enix role-playing game, Final Fantasy VII. It was spearheaded by former Square Enix CEO Yoichi Wada. Prior to this, Wada was responsible for the closure of Square Enix's Latin America and India operations, mere months after being handed the reins.

(Also see: The Ups and Downs of Final Fantasy VII Remake Are Giving Me a Heart Attack)

This follows Square Enix shuttering Dive In last year. It was a streaming platform launched in Japan that allowed gamers to play games like Final Fantasy VII and XIII on Android and iOS devices.

After a period of hustle and bustle that saw upstarts like Gakai and OnLive pioneering the space, it seems that Sony's PlayStation Now and Nvidia's GeForce Now are the only two prominent game streaming services left. It's in stark contrast to video streaming which has seen Netflix eyeing India as a target for expansion and Amazon producing quality content.