After the merging with Enix Corporation, Development Division 5 would resume the release of All Star Pro-Wrestling III.

The Osaka studio would enter a state of relative dormancy as priorities within the corporation shifted to their biggest hits, however the popularity of Kingdom Hearts gave the team a second wind. They would be directed by Nomura on making side entries of Kingdom Hearts such as the PS2 version of Chain of Memories, and Birth By Sleep.

In September 2010, the Square Enix 1st Production Department initiative would merge this studio with Product Development Department 1 to create more big sellers, especially within Kingdom Hearts.