Ah, weekly Square-Enix bashing thread. And of course in the Sony section. And of course from the guy with an Old Snake avatar. And of course this has nothing to do with 360 exclusives.
Still, I'll answer: The goal of the merger was to decrease development costs and to create a strong single company out of the two failing ones. As both Square and Enix were in financial troubles in the period of 1999-2003. Square because of The Spirits Within, Enix because of DQVII and DQ Monsters 2 delays.
If not for the merger, Square would eventually go bankrupt again and become someone's 1st party studio and Enix would be forever stuck in Japan without any chance to become a global publisher. And now they are the biggest 3rd party japanese publisher, owners of Taito and Eidos, and are going to continue making take over bids despite the economic crisis. Because yes, they were that profitable during the last 5 years.
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