Square Pictures, located in Honolulu, Hawaii, was a computer-animated film division of Square Co., Ltd. In 1997, they began work on a feature CG film based on Final Fantasy. In addition there were rumors of movie adaptations of Transformers and Everquest.

In 2000, the film was revealed as Final Fantasy: The Spirits Within. The movie was released on July 11, 2001, but was not met with critical acclaim. Universally panned by movie reviewers, the film brought in a significantly lower than expected box office return of $30 Million. Considering the film's budget was close to $130 million, the film was considered a box-office bomb. This catastrophic loss lead to the Square Pictures dissolving.

Before they closed down, they created a short film for the Wachowski brothers that was centered in the world of The Matrix, titled the Final Flight of the Osiris. The short featured photo realistic characters, just as The Spirits Within, performing acrobatic moves in action sequences. The film was shown in theaters alongside Dreamcatcher and was meant to set the stage for the two Matrix sequels. The short was released on DVD in June 3, 2003 as part of the Animatrix.