The merger between Square and Enix in 2003 was profoundly affected by the financial failure of Final Fantasy: The Spirits Within, a landmark film that simultaneously became the catalyst for a series of internal problems within Square. Hironobu Sakaguchi, the creator of the acclaimed Final Fantasy saga, left the company in 2001, a decision that, according to composer Nobuo Uematsu, had devastating consequences for Square’s organizational structure.
Without Sakaguchi Square Enix has not been the same for 20 years
In a recent episode of his podcast Together with NOBIYO, Uematsu, who has been a collaborator of Sakaguchi since the 80s, recalled the profound influence that the latter had on the company. “The organization simply collapsed after he left,” Uematsu stated, adding that the lack of strong leadership was immediately noticeable. “He has always been the great boss,” he concluded, reflecting the admiration that his followers and colleagues feel towards him.
The premiere of Final Fantasy: The Spirits Within in 2001 turned out to be a financial fiasco, which not only eroded confidence in Sakaguchi’s management but also delayed the planned merger with Enix. This marked a critical moment in Square’s history, which was experiencing its worst times just before the merger.
After his departure, Sakaguchi continued to be credited as an executive producer on several Final Fantasy games until 2003. Uematsu, for his part, left Square Enix in 2004 and, although he has worked as a freelancer, his musical legacy remains alive in projects developed by the studio Mistwalker, founded by Sakaguchi, where he has contributed to titles such as Blue Dragon and Lost Odyssey.
These events have left an indelible mark on the company’s history, signaling a significant change in its direction and future in the video game industry.