Square Enix Reports Higher Operating Profit and Details Midterm Restructuring Plan
- ⚡Xe⚡
- 4 hours ago
- 2 min read
Square Enix has released financial results for the six months ending September 2025 and shared an update on its ongoing three-year business plan, “Square Enix Reboots and Awakens.” The plan focuses on improving development efficiency, expanding multiplatform releases, and strengthening the value of key franchises.
In the Digital Entertainment division, operating income rose to ¥20 billion despite lower sales, reflecting higher profitability driven by strict cost management and selective development. The HD Games segment returned to profit thanks to reduced game amortization and lower advertising expenses, meaning older titles are now generating cleaner revenue. Catalog sales for existing games showed strong year-on-year growth, led by continued performance across major series.
The MMO business saw lower results compared to last year, which was expected since the 2024 period included the launch of Final Fantasy XIV: Dawntrail. First-half sales for the segment reached ¥19.9 billion, and the title remains a key contributor following Patch 7.3: The Promise of Tomorrow in August 2025. Mobile and browser games reported lower revenue but higher profitability due to tighter cost control, new payment systems, and a stronger focus on established IPs.
Square Enix also reported solid growth in merchandising, with sales rising to ¥12.7 billion. The company credited this to royalties from key properties and strong demand for collaborations, particularly the record-breaking Final Fantasy x Magic: The Gathering partnership.
As part of its ongoing restructuring, the company is consolidating its development operations in Japan to improve quality and resource management, which included the closure of several overseas studios. Square Enix is also investing in AI research to automate quality assurance and debugging processes, aiming to make development more efficient.
For the full fiscal year ending March 2026, Square Enix maintained its forecast of ¥280 billion in net sales and ¥41 billion in operating income. The company plans strategic investments of ¥80 to ¥100 billion in AI, data marketing, and the growth of core franchises such as Final Fantasy and Dragon Quest.
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About Square Enix, Inc.
Square Enix, Inc. develops, publishes, distributes and licenses SQUARE ENIX and TAITO branded entertainment content throughout the Americas as part of the Square Enix group of companies. The Square Enix group of companies boasts a valuable portfolio of intellectual property including: FINAL FANTASY, which has sold over 204 million units worldwide; DRAGON QUEST, which has sold over 95 million units worldwide; and the legendary SPACE INVADERS. Square Enix, Inc. is a U.S.-based, wholly owned subsidiary of Square Enix Holdings Co., Ltd.
More information on Square Enix, Inc. can be found at https://square-enix-games.com