President of Square Enix Yosuke Matsuda clarified that the studio would be a 'fusion of cutting-edge technology and art'. The new studio's leader and Final Fantasy XV director Hajime Tabata left Luminous Productions and Square Enix around the same time, and planned future content for Final Fantasy XV was also cancelled. Its initial goal was to work on video games and 'other entertainment content ', but later that year the studio was refocused on just making games, causing to report a thirty-three million dollar loss for the half-year ending on September 30, 2018. So many were taken from the internal development division Business Division 2 that created Final Fantasy XV that Square Enix stated that it functionally 'no longer exists'. Since the studio pulled in so many who were working on Final Fantasy XV, Luminous Productions helped with the game alongside their new project.

While forming a new internal studio from existing ones is common worldwide, it is uncommon in Japan.

Luminous Productions was originally assembled from employees working on Final Fantasy XV. Ltd internally, citing the merging of the two would “enhance the Group’s ability to develop HD games”. On February 28, 2023, Square Enix Holdings announced that on May 1, 2023, Luminous Productions would reorganize and merge with Square Enix Co. The aim of the company was to create AAA video games for a global audience using Square Enix's proprietary Luminous Engine. The current name and development structure of the studio was formed on 27 March 2018 as an external company.

It was originally known as Business Division 2, which was the development team responsible for Final Fantasy XV and was one of 12 Business Divisions (internal development and production divisions) that Square Enix had at the time before the company consolidated its development divisions in 2020.

( 株式会社ルミナス・プロダクション, Kabushiki gaisha Ruminasu Purodakushon) was a Japanese video game development studio and a subsidiary of Square Enix.

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