Square Enix has closed its publishing and development facility in Mumbai, around one year since the company was established.
The Final Fantasy publisher's India operation was built with the mission statement to develop "world class mobile gaming for India", hoping to achieve this task through local partnerships with games studios.
However, Square Enix has shut down the facility without it having published a single game, according to an MCV India report.
It is believed less than ten staff were working at the company.
Atul Vibhandik, the former executive in charge of Square Enix India, confirmed the closure but declined to comment further.
In March, Square Enix president Yosuke Matsuda said the company will focus more on core audiences.
In 2013, the corporation's longstanding chief executive Yoichi Wada resigned after announcing an "extraordinary loss" for the 2012/13 financial year.
Months later the corporation pledged to make a "comprehensive review" of work-in-progress games.