We are still not a year old since Square Enix got rid of the western studio (some were independent during the until early 2000’s) Eidos Montreal, Crystal Dynamics and Square Enix Montreal by selling them to Embracer Group and remaining subsidiaries' future were questionable.
Luminous Productions, the developers behind Forspoken and the heavy part of Final Fantasy XV development, are the latest subsidiary with big changes as Square Enix announced that they were merging the, with their other inner studios.
While Square Enix justified the move as part of the company’s efforts to further bolster the competitive prowess of the group’s development studios, the reality is that this is a “nice way” to react to the performance of any product and Forspoken was not the success that Square Enix hoped for.
Forspoken is a 2023 action role-playing game developed by Luminous Productions and published by Square Enix and it was immediately notable how hefty the hardware requirement were for the game, basically needing a 4K setup to play 2K and a High-End 4K to play at a consumer level 4K adequately, which mixed with the game overall content itself, left many gamers underwhelmed.
Despite this, Luminous Productions has stated that they are still working on post-launch content on the game and the merge within the inner studios of Square Enix will not mean changes in plans.