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Square Pictures was a subsidiary of Squaresoft that specialized in computer animation for feature films. Founded in Honolulu, Hawaii in 1997, the venture was an experiment to see if the technological breakthroughs in feature film could be incorporated into video games and vice versa, creating a self sustaining loop of creativity. In 1998, Square Pictures collaborated with Columbia Pictures to create a film, which eventually became Final Fantasy: The Spirits Within in 2001. The financial failure of the film on top of the high maintenance costs of running the subsidiary, put Square in a tough financial state. Negotiations slowed on the merger with Enix nearly broke down entirely due to the latter growing weary of attaching themselves to a floundering company. The studio then created a short film titled Final Fight of the Osiris for the Animatrix anthology series in 2003 before being consolidated into Visual Works.