Square Enix shutters Indonesian mobile studio
Smileworks closed after 18 months, Square Enix to nurture partnerships in the region in its place
Update: Square Enix has confirmed that Smileworks employed 14 people at the time of its closure. It also offered the following statement:
"The Square Enix Group aims to choose the optimum business set-up for any target market, after careful examination of the market environment, analyzing the competitive situation and identifying the necessary business functions needed for that target market.
"However it has proved difficult to achieve the expected results from the Square Enix Smileworks business and after re-evaluation, the company has decided to close down the Square Enix Smileworks business."
Original Story: Square Enix has closed its Indonesian mobile studio, Smileworks, just 18 months after it first opened for business.
When the studio was founded in Surabaya, Java, it had a team of 23 people, all working on games for mobile platforms. According to a post on the Smileworks website, it is "currently under the liquidation process."
Misa Tokunaga, corporate communications manager at Square Enix Japan, has told Tech In Asia that Smileworks was closed due to its failure to deliver the results the company expected.
It has also resulted in a change of strategy when it comes to Indonesia. Rather than open another studio in the area, Square Enix will develop its business through partnerships with local businesses.
We have contacted Square Enix regarding the number of jobs lost as a result of this decision.