Under Wada, the company underwent restructuring with the intent of streamlining production and resources, and cutting development costs to increase profits. After evaluation of its financial position, and with changes to the console war due to Microsoft's Xbox, Square opened talks with Nintendo for the first time since their breakup in the 1990s. The talks were successful, with Final Fantasy Crystal Chronicles beginning development for the GameCube in late 2001. Square also began production on Final Fantasy X-2, the first direct sequel to a Final Fantasy game. Final Fantasy X-2 was Sakaguchi's last credited project at Square, and he left the company in 2003. Around this time, Square also began development on Kingdom Hearts (2002), with Nomura making his directorial debut. The game was a collaboration between Square and The Walt Disney Company, blending Disney characters with Final Fantasy elements in an original story. Kingdom Hearts was Shimomura's last project as an in-house composer before going freelance in 2002. Also released in 2002 was the Japanese version of Final Fantasy XI, the company's first MMORPG. Conceived by Sakaguchi, it was developed by the Chrono team and led by Ishii. Final Fantasy XI and its first expansion was Kato's last work for Square before leaving in 2002 to go freelance.
Under Wada, the company underwent restructuring with the intent of streamlining production and resources, and cutting development costs to increase profits. After evaluation of its financial position, and with changes to the console war due to Microsoft's Xbox, Square opened talks with Nintendo for the first time since their breakup in the 1990s. The talks were successful, with Final Fantasy Crystal Chronicles beginning development for the GameCube in late 2001. Square also began production on Final Fantasy X-2, the first direct sequel to a Final Fantasy game. Final Fantasy X-2 was Sakaguchi's last credited project at Square, and he left the company in 2003. Around this time, Square also began development on Kingdom Hearts (2002), with Nomura making his directorial debut. The game was a collaboration between Square and The Walt Disney Company, blending Disney characters with Final Fantasy elements in an original story. Kingdom Hearts was Shimomura's last project as an in-house composer before going freelance in 2002 Also released in 2002 was the Japanese version of Final Fantasy XI the company's first MMORPG. Conceived by Sakaguchi it was developed by the Chrono team and led by Ishii. Final Fantasy XI and its first expansion was Kato's last work for Square before leaving in 2002 to go freelance.