Square Enix Reports Weaker HD Sales Following FFXVI and FFVII Rebirth Impact
- ⚡Xe⚡
- May 15
- 2 min read
Square Enix reported its financial results for the fiscal year ended March 31, 2025, showing a notable shift in performance across several of its key Final Fantasy-related sub-segments.
In the High-Definition Games category, Square Enix recorded a year-on-year decline in net sales, citing weaker performance of newly launched titles compared to the previous fiscal year. This decline was attributed to the absence of strong releases like Final Fantasy XVI, Final Fantasy Pixel Remaster, and Final Fantasy VII Rebirth, which had significantly contributed to the prior year’s revenue.
“In the HD (High-Definition) sub-segment, consolidated net sales for the fiscal year ended March 31, 2025 declined compared with the same period of the previous fiscal year as new titles generated lower sales than releases such as ‘FINAL FANTASY XVI,’ ‘FINAL FANTASY PIXEL REMASTER,’ ‘Dragon Quest Monsters: The Dark Prince,’ and ‘FINAL FANTASY VII REBIRTH.’ did in the previous year.”
Despite the drop in HD game sales, the segment turned profitable. The company attributed this turnaround to lower development cost amortization, reduced advertising and content valuation losses, and stronger-than-expected performance of Dragon Quest III HD-2D Remake, which was released in November 2024.
Meanwhile, the MMO sub-segment delivered improved results. Sales and operating income both increased compared to the previous year, driven by the launch of Final Fantasy XIV: Dawntrail, the latest expansion for Final Fantasy XIV.
“In the MMO (Massively Multiplayer Online) Game sub-segment, net sales and operating income rose compared with the same period of the previous fiscal year with the launch of ‘FINAL FANTASY XIV: Dawntrail,’ the latest expansion pack for ‘FINAL FANTASY XIV.’”
Looking ahead, Square Enix is taking steps to reorganize its development strategy. The company announced that it will transition from a volume-based approach to a quality-focused model for its Digital Entertainment segment. This includes plans to regularly release AAA HD titles within its major franchises.
“First, mindful of the need to launch HD titles that help attract additional fans to the Group, the Group will regularly release AAA titles in its major franchises to maintain and build upon its fan base.”
The company also confirmed its commitment to multiplatform development. Future HD releases, including entries in major franchises, will target a broader range of platforms, including PlayStation, Xbox, Nintendo, and PC.
“For HD titles, the Group will aggressively pursue a multiplatform strategy that includes Nintendo platforms, PlayStation, Xbox, and PCs.”
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-⚡Xe⚡
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