Square Company Ltd., parent operation of Honolulu-based Square Pictures, has cut-off funds for the CG house, but will allow the studio to seek alternative production financing. According to a brief in The Hollywood Reporter, this decision is due to the poor performance of Square Pictures first feature endeavor Final Fantasy: The Spirits Within. The film is $50 million under its expected U.S. box office numbers, grossing only $30 million. Additionally, the company anticipates a loss of $115 million for the current fiscal year.

Square Pictures is operating as an independent studio now, with a project in-house and discussions in the works for a CG property under the Columbia Pictures banner that could be either a sequel or prequel to Final Fantasy or a comedy ala Shrek. At present, Square Company has no plans to sell the 3D firm. The Final Fantasy DVD will be on store shelves Oct. 23.