at the 2006
Tokyo Game Show Mistwalker was founded in
Honolulu,
Hawaii by
Hironobu Sakaguchi, who had worked at
Square since its formation in 1983. He notably conceived and helped develop the
role-playing video game Final Fantasy, which saved the company's finances at the time and began a
franchise of the same name. Sakaguchi lost prominence within Square with
Final Fantasy: The Spirits Within, a CGI film based on the
Final Fantasy property that he directed. A highly ambitious title, it greatly exceeded its budget and was a box office bomb, which damaged Square's finances, delayed their planned merger with
Enix, and prompted Sakaguchi to step away from direct involvement with future Square productions. In 2001, with Square in the red for the first time since inception, Sakaguchi resigned from his position at Square along with two other senior executives. His main reason for this was the growing administrative duties he was having to handle in his senior position, something that kept him away from game production. He signed an agreement with Square to act as executive producer for
Final Fantasy games. While Sakaguchi continued to receive credits as executive producer, he described himself as "doing nothing" in Hawaii over the following three years, having been demoralized by the movie's failure. At one point, he felt guilty about his lack of contributions to the industry. Motivated to return to the game industry and create his own original properties, Sakaguchi got into contact with his friends artists
Akira Toriyama and
Takehiko Inoue about possibly collaborating on game projects. He left Square in 2003, with his last credit with the company being
Final Fantasy X-2. Mistwalker was officially formed in July 2004, although its trademark existed as early as 2001. Mistwalker is noted as being one of a group of video game companies—alongside
Sacnoth,
Love-de-Lic and
Monolith Soft—founded by Square staff who had worked on notable games produced during the 1990s. Some of the funds for its foundation came from
Microsoft through its
Japanese game division. The studio offices are based in
Honolulu,
Hawaii, and
Tokyo, Japan. ==History==