Final Fantasy Composer Says Square-Enix ‘Collapsed’ After Merger

Hold onto your Chocobos, because Nobuo Uematsu just dropped a bombshell more dramatic than a Final Fantasy plot twist: Square-Enix “collapsed” after Sakaguchi left. Here’s how the post-merger chaos unfolded—and how the company rose from the ashes.

Here’s the TL;DR…

• Nobuo Uematsu says Square-Enix “collapsed” after Sakaguchi quit in 2003

• His comments highlight the post-merger confusion and lack of leadership

• Despite early chaos, Square-Enix eventually recovered with major hits like FFXIV

Uematsu’s Quotes: “The Situation Was Awful”

Legendary Final Fantasy composer Nobuo Uematsu didn’t hold back on the June 25, 2025, episode of his podcast NOBIYO To Isshoni (Together with NOBIYO). As reported by AUTOMATON WEST and Wccftech, Uematsu described Square’s state after Hironobu Sakaguchi left in 2003 as nothing short of a corporate meltdown:

“The situation at Square was awful after he quit. He left, and the organisation suddenly collapsed. I thought to myself—Oh no, I should get away from here.”

The legendary composer credited Sakaguchi’s natural leadership:

“We didn’t even have a proper corporate organisation, yet everybody listened to him. It’s a kind of quality you just have to be born with.”

His words offer a rare, candid glimpse into the disarray that followed one of the most influential resignations in gaming history.

The 2003 Merger: A Union on Shaky Ground

Square and Enix officially merged in April 2003, with Enix technically absorbing Square. At the time, Square was still reeling from the massive financial failure of Final Fantasy: The Spirits Within (2001), which lost over $50 million. That flop pushed Sakaguchi to step down from his role as a game designer. According to Gamerant and Wikipedia, around 80% of the staff in the newly formed Square-Enix came from Square.

Uematsu’s claim that “the organisation suddenly collapsed” appears to coincide with this transitional period. His firsthand account suggests that morale and direction hit an all-time low despite the merger’s intended goal of stabilization.

Sakaguchi’s Role: The Heart of Square

Hironobu Sakaguchi founded the Final Fantasy series and had been Square’s creative backbone since the 1980s. His influence was monumental—Final Fantasy VII alone sold over 10 million copies, setting new standards for JRPGs and 3D storytelling.

Uematsu’s podcast underscored how much Sakaguchi’s presence held the team together:

“We didn’t even have a proper corporate organisation, yet everybody listened to him.”

His departure left a creative and strategic vacuum that, according to Uematsu, triggered Square’s internal crisis. The company’s identity had been so intertwined with Sakaguchi that losing him was, for many, a breaking point.

Square-Enix’s Recovery: Rising from the Ashes

Despite Uematsu’s dire assessment, Square-Enix ultimately found its footing. Under the leadership of Yoichi Wada, the company restructured and adopted a “polymorphic content” strategy that focused on cross-platform development and media franchises.

Hits like Final Fantasy XIV and Kingdom Hearts III played a major role in the company’s revival, supported by strong financial performance throughout the 2010s and beyond. Uematsu even acknowledged the recovery:

“It got back on track,” he said, though his earlier comment—“I should get away from here”—shows how bleak things initially looked from the inside.

Cultural and Industry Impact: A Legacy Tested

Uematsu’s remarks reignited debate among fans and critics alike about the value of creative leadership. Sakaguchi’s departure is now seen not just as the end of an era, but a case study in how fragile even the biggest names in gaming can be.

Discussion boards like r/FinalFantasy have lit up with renewed interest in the company’s history. Analysts point to Square-Enix’s survival as a rare case of a studio pulling itself back from the brink.

Uematsu’s Career: The Soundtrack to a Generation

After going freelance in 2004, Nobuo Uematsu continued composing for titles like Blue Dragon, Lost Odyssey, and Fantasian Neo Dimension (2024), expanding his legacy beyond Final Fantasy. His unique style and emotional range have made him one of the most celebrated composers in video game history.

Even now, his words carry weight. And when he says Square-Enix “collapsed,” you can almost hear the somber piano notes swelling behind the drama.

News compiled and edited by Derek Gibbs and Steven Bubbles on June 29, 2025. Follow us on ClownfishTV.com for more gaming, pop culture, and tech news, and consider subscribing for only $5 per month to get access to exclusive podcasts and other content.

Sources:

• AUTOMATON WEST, “Square collapsed after he left,” June 25, 2025 (Uematsu quotes: “The situation at Square was awful after he quit,” “He left, and the organisation suddenly collapsed,” “I thought to myself – Oh no, I should get away from here,” “We didn’t even have a proper corporate organisation, yet everybody listened to him,” “It’s a kind of quality you just have to be born with”)

• Wccftech, “Final Fantasy Creator Hironobu Sakaguchi’s Departure Led to Square’s Collapse, Series Composer Says,” June 25, 2025 (Uematsu quotes as above)

• Wikipedia, “Square Enix,” June 18, 2025

• Gamerant, “Final Fantasy Composer Says Square Almost Collapsed After Franchise Creator Left,” June 25, 2025

• Wikipedia, “Hironobu Sakaguchi,” June 25, 2025

• Square-Enix, “Final Fantasy VII – Sales Figures,” 1997

• Daniel Robson, “Square-Enix’s Post-Merger Strategy,” 2005

• IGN, “Square-Enix’s Post-Merger Struggles Revisited,” June 26, 2025

• r/FinalFantasy, June 2025

• John Szczepaniak, “Square-Enix: A Corporate History,” 2020

• Wikipedia, “Nobuo Uematsu,” May 26, 2025