Breaking now on Gematsu.
For those unfamiliar, Square founded the studio a decade ago with a focus on making smaller budget JRPGs of the type that Square had been falling away from at the time. It never really had any big hits and hasn't released a title in years. To be honest, I thought they had possibly dissolved already but I guess not. The article doesn't mention the staff at all and while I suspect that a lot of them will be facing the ax on this, I suppose others could just go off to paint grass for Dragon Quest.Square Enix will merge with Tokyo RPG Factory in an absorption-type merger, the company announced.
This means that Square Enix, the surviving company, will inherit all assets and liabilities of Tokyo RPG Factory, the dissolving company, and Tokyo RPG Factory will cease to exist as an individual entity.
Tokyo RPG Factory, a subsidiary of Square Enix, was established in 2014, and has developed and released I Am Setsuna (2016) for PlayStation 4, Switch, PS Vita, and PC, and Lost Sphear (2017) and Oninaki (2019) for PlayStation 4, Switch, and PC.