Yoichi Wada
A merger between Square and Enix was considered since at least 2000; the financial failure in 2001 of Square's first movie, "", made Enix reluctant to proceed while Square was losing money. With the company facing its second year of financial losses, Square approached Sony for a capital injection, and on October 8, 2001, Sony Corp purchased an 18.6% stake in Square. Following the success of both "Final Fantasy X" and "Kingdom Hearts", the company's finances stabilized, and it recorded the highest operating margin in its history in the fiscal year 2002. It was announced on November 25, 2002, that Square and Enix's previous plans to merge were to officially proceed, intending to decrease development costs and to compete with foreign developers. As described by Square's president and CEO Yoichi Wada: "Square has also fully recovered, meaning this merger is occurring at a time when both companies are at their height."