Square Enix has launched its monetary outcomes for the 12 months ending March 31, 2025, with a drop in internet sales attributed to the shortage of comparable releases to video games like final 12 months’s Last Fantasy VII Rebirth.
Nonetheless, the corporate noticed a rise in working earnings and revenue. Dragon Quest III HD-2D Remake additionally carried out higher than anticipated.
The corporate is continuous its three-year plan – as revealed this time final 12 months – to optimise its growth operations and put high quality over amount for its future game releases, as properly as prioritising multiformat growth.
The numbers
- Internet sales: ¥324.5 billion ($2.22 billion, down 8.9% year-on-year)
- Digital leisure sales: ¥206.54 billion ($1.42 billion, down 16.8% YoY)
- Working earnings: ¥40.58 billion ($278.1 million, up 24.6% YoY)
- Revenue attributable to house owners of mum or dad: ¥24.41 billion ($167.3 million, up 63.7%)
The highlights
HD-Video games, a sub-segment of Square Enix’s enterprise that features its principal console and PC releases, dropped in internet sales this 12 months but turned worthwhile on account of “decrease growth price amortisation, promoting bills, content material valuation losses in contrast with the identical interval of the earlier 12 months.”
As famous, too, the most recent Dragon Quest launch additionally contributed to the constructive outcome. Different new HD-Video games releases this previous 12 months included Life is Unusual: Double Publicity and Visions of Mana.
The launch of Last Fantasy XIV’s Dawntrail growth elevated internet sales and working earnings within the firm’s MMO (Massively Multiplayer On-line) Game sub-segment.
Internet sales and working earnings declined for the Video games for Good Gadgets/PC Browser sub-segment, although, which Square Enix attributed to “weak spot in present titles and the popularity of royalty income within the earlier fiscal 12 months”. This was regardless of the discharge of latest game Emberstoria.
Right this moment, the corporate introduced the cancellation of cell title Kingdom Hearts Lacking-Hyperlink on Twitter.
HD-Video games collectively made ¥33.87 million in working earnings, up 33% from the earlier 12 months.
The long run
Square Enix additionally supplied an replace on its three-year ‘medium-term’ marketing strategy. “In FY2025, we basically revamped our growth organisation construction for home studios,” the report learn.
“Based mostly on the idea of built-in studio operations, we reviewed your entire strategy of title growth progress administration and adjusted to a system during which administration and studios handle the event progress of all large-scale funding titles, selling optimisation of the event portfolio and schedule, as properly as expertise mobility and growth price optimisation amongst in-house growth personnel.”
The revised course of has led to important adjustments behind the scenes.
“Beneath the brand new administration construction, we reviewed all tasks at our home studios, together with HDG and [Smart Devices] titles, and determined to discontinue growth of some titles and make investments further funds in titles that require refinement, thereby steadily implementing a method of choosing and concentrating growth sources.”
“We are going to proceed to regulate the size of growth funding in a disciplined method,” the corporate added.
The report underlined the strategy of going into FY27 and past by placing a number of video games on a number of platforms and releasing main titles on a constant foundation.
The corporate additionally known as out the PC market as a spotlight of the 12 months when it got here to catalogue sales, and a results of its new multiformat technique. PC sales had been chargeable for greater than a 3rd of its Digital Leisure sales in FY25, a double digit proportion improve on FY24.
Square Enix launched Last Fantasy VII Rebirth on PC in January 2025 following its 2024 PC launch, and likewise introduced the Kingdom Hearts franchise to Steam for the primary time in June 2024.
For FY26, Square Enix forecasts sales declining once more to ¥280 billion, with working earnings regular at ¥41 billion. Upcoming releases embody Bravely Default Flying Fairy Remaster on Nintendo Change 2 and Dragon Quest I & II HD-2D Remake.