Square Enix

Square and Enix began as rivals, both creating genre-defining RPGs (*Final Fantasy* and *Dragon Quest*). These games introduced millions to epic fantasy storytelling, turn-based strategy, and massive, multi-world exploration. Their eventual 2003 merger created a JRPG powerhouse that effectively owned the identity of the Japanese role-playing genre for a global audience.

Following the merger, the company spent a decade trying to evolve its classic turn-based style into modern, action-oriented, and "open-world" gaming. This transition was marked by both massive successes and controversial pivots, forcing the studio to learn how to balance its deep-seated tradition with the demands of the hyper-competitive, modern Western market.

Square Enix made a strategic decision to sell off its Western-developed studios (including *Tomb Raider* and *Deus Ex*). The goal was to pivot the company’s capital and focus entirely back to its core, Japanese-made RPG strengths. It was a "return-to-roots" play aimed at improving margins and ensuring the long-term health of their legacy franchises.

The company began successfully integrating "service-based" elements into its long-running franchises (like *Final Fantasy XIV*). By creating a world that players lived in for years, Square Enix turned its high-effort story games into reliable, high-revenue-generating live-service engines, stabilizing its financial profile without losing its "prestige" reputation.

By mid-2026, Square Enix stands as a highly disciplined, premium publisher. It has successfully shed its "identity crisis" and now focuses exclusively on high-impact, high-quality RPG experiences. It remains the absolute leader in narrative-heavy gaming, operating with a lean, profitable business model that prioritizes its historical strengths.