Square Enix opening new Canadian studio. But where - Vancouver, Montreal, or Toronto?

Japanese videogame publishing conglomerate Square Enix is responsible for two of Japan's best-selling franchises - Final Fantasy has sold over 85 million units worldwide and Dragon Quest has sold over 50 million units.

La Presse reported yesterday that the publisher is considering setting up a second studio in Canada. Square Enix already owns Eidos Montreal, which it inherited in a 2009 merger. Eidos Montreal, maker of the forthcoming Deus Ex: Human Revolution, is the fourth largest game studio in the city behind EA, Ubisoft and Behaviour.

Square Enix told La Presse that it is looking to establish a new studio that would employ roughly 100 people with Vancouver, Montreal, and Toronto all in the running as possible locations.

Not surprisingly Square Enix is hoping to take advantage of tax credits, as well as government subsidies from whichever province lands the studio. A Square Enix representative told LA Press the company aims to settle on one of the Canadian locations for the studio by May, with an opening expected next year.

So where will Square Enix land? Each city has its advantages. Vancouver has a talent pool thanks to the studio closures, Toronto is Canada's business capital, and Montreal is already home. But tax breaks will likely be the clincher.