Join gaming leaders online at GamesBeat Summit Next this upcoming November 9-10. Learn more about what comes next. 

It looks like Square Enix is jumping off the cloud gaming train.

The publisher has closed Shinra Technologies, a division working on cloud-based technologies that would allow games to bypass the forced limitations of native hardware and deliver more impressive graphics, according to Engadget. Square Enix will lose about $16.8 million by closing Shinra.

Square Enix made the decision to close the division after it failed to find capital from outside investors. Shinra was testing its cloud-gaming technology with Google Fiber in Kansas City and Verizon Fios in Texas.

This is a big blow to cloud gaming, a technology that many once thought would be the future of the industry. However, virtual reality seems to attract all of the buzz these days. Perhaps we’ll see companies make new strides in cloud gaming in the coming years as Internet bandwidth continues to improve across the world.


GamesBeat's creed when covering the game industry is "where passion meets business." What does this mean? We want to tell you how the news matters to you -- not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. How will you do that? Membership includes access to:
  • Newsletters, such as DeanBeat
  • The wonderful, educational, and fun speakers at our events
  • Networking opportunities
  • Special members-only interviews, chats, and "open office" events with GamesBeat staff
  • Chatting with community members, GamesBeat staff, and other guests in our Discord
  • And maybe even a fun prize or two
  • Introductions to like-minded parties
Become a member