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Isn't it very naive of them to think they can do this unlicensed? They are basically using SquareEnix's IP to raise money for their project - that is not going to work.

Yep, Square has a history of protecting their trademarks too. They shut down "Crimson Echoes" which was a no-cash-involved fan game too based on Chrono Trigger.

They don't address the licensing issue in their "risks" section (or anywhere else), either. That doesn't speak greatly for their chances.

As a fellow webseries guy, I wish them luck, but I fear they're going to need it, in heaps.

Pretty soon I guess. Square shut down many fan projects that didn't even use their assets (like Chrono Trigger resurrection) and weren't supposed to earn money. They basically send DMCAs just for using their trademark (i.e. game title).

That was my first thought as well. I could not see that it said anywhere that they had been Ok'd by Square Enix.

I can't imagine Square will be happy with that.