Before 2003, Square Enix didn't literally exist. Instead, two companies called Square and Enix did, both producing competing RPGS; Square with their famed Final Fantasy franchise, and Enix with their insanely popular Dragon Quest franchise. However, when Square came into financial difficulties due to the ill-fated Final Fantasy: The Spirits Within movie, the two merged and formed Square Enix.
The president who took Square down its slippery slope (Tomoyuki Takechi) left the company, and Yoichi Wada was promoted to be the new president of Square, and then Square Enix. Since then, many people have become more and more disillusioned about Square Enix's conduct and the games it produces.