Bear in mind that Square was also considering a merger with Enix around this time, but CEO Hisashi Suzuki was hesitant because he thought that Square was on the rise and Enix was getting the better end of the deal.
And then Final Fantasy: The Spirits Within hit, and cost Square a boatload of money. Suzuki immediately stabilized things by selling 20% of Square to Sony, but the impact spooked Enix, and Yoichi Wada took this opportunity to stage a coup, siezed the company from Suzuki, fired Hironobu Sakaguchi, and merged Square with Enix. And then he ran SquareEnix into the ground, year after year, until a couple of years ago SquareEnix was worth less than Square by itself was after the FF:TSW disaster, and Wada quietly retired while Suzuki mocked him on Twitter.
And then Final Fantasy: The Spirits Within hit, and cost Square a boatload of money. Suzuki immediately stabilized things by selling 20% of Square to Sony, but the impact spooked Enix, and Yoichi Wada took this opportunity to stage a coup, siezed the company from Suzuki, fired Hironobu Sakaguchi, and merged Square with Enix. And then he ran SquareEnix into the ground, year after year, until a couple of years ago SquareEnix was worth less than Square by itself was after the FF:TSW disaster, and Wada quietly retired while Suzuki mocked him on Twitter.