The studio in the Harbor Court office tower was the production site of the $135 million computer-animated film "Final Fantasy" and contains millions of dollars of cutting-edge equipment.

Tokyo parent company Square Co. Ltd. is trying to sell the equipment, spokeswoman Yumi Ozaki said.

While some of the studio's employees still have jobs in Square, others are looking for work, Ozaki said.

Ozaki did not specify how many employees were losing their jobs, but said most are going to Japan, the U.S. Mainland or Europe ­ "pretty much all different directions."

Since the studio opened in 1997, Square USA has been held up by state technology industry backers as an example of the state's high-tech potential. Square USA president Jun Aida had said he chose Honolulu for the studio's location because of its beauty and cultural diversity.

Square USA intended to produce a line of films based on its parent company's "Final Fantasy" video game series. The first film, "Final Fantasy: The Movie," was released last summer.

Though billed as technologically ground-breaking, the movie received a lukewarm reception. "Final Fantasy," through October, had ticket sales of only about $30 million in North American markets, about a third of its target. The Square film-making division lost $107 million for the six months ending Sept. 30, 2001.

Square called off plans for further movies and in January announced the studio would close if no investors could be found.