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Square Enix Profits Rise Despite Sales Dip, Cancels Kingdom Hearts Mobile Game as Part of Strategic Reboot


Square Enix tifa from ff7

Square Enix’s latest financial report for the fiscal year ending March 31, 2025, reveals a mixed bag of results—a drop in net sales, but a significant rise in profit.


While the absence of a blockbuster on the scale of Final Fantasy VII Rebirth contributed to a sales decline, the company’s ongoing restructuring efforts and stronger-than-expected performance from key titles like Dragon Quest III HD-2D Remake helped boost operating income.


The Japanese publisher is now deep into the second year of its "Reboots and Awakens" three-year plan, aimed at streamlining development, prioritizing quality, and embracing multiplatform releases.


Key Figures (FY2025)


  • Net Sales: ¥324.5 billion (~$2.22 billion), down 8.9% YoY - a five-year low

  • Digital Entertainment Sales: ¥206.54 billion (~$1.42 billion), down 16.8% YoY

  • Operating Income: ¥40.58 billion (~$278.1 million), up 24.6% YoY

  • Profit (Attributable to Owners): ¥24.41 billion (~$167.3 million), up 63.7% YoY


HD-Games Turn Profitable, Despite Fewer Hits


Square Enix’s HD-Games division—which includes mainline console and PC titles—reported a drop in sales but a notable rise in profitability. The improvement was driven by lower development amortization costs and reduced advertising expenses compared to last year.


Contributing Titles:


  • Dragon Quest III HD-2D Remake (exceeded expectations)

  • Visions of Mana

  • Life is Strange: Double Exposure


These helped offset the lack of a tentpole release like FFVII Rebirth or Final Fantasy XVI.


MMO and PC Segments Shine


The MMO segment saw increased revenue and profits, primarily thanks to the launch of the Final Fantasy XIV: Dawntrail expansion.


Meanwhile, Square Enix’s push into multiplatform development is already paying off, with PC sales now accounting for over a third of digital entertainment revenue—a double-digit percentage increase over the previous year. Titles like FFVII Remake Intergrade and the Kingdom Hearts collection on Steam contributed to this rise.


Mobile Struggles—and a Kingdom Hearts Casualty


The mobile and browser games division saw sharp declines, with underperformance in existing titles and lower royalty income year-over-year.


In a notable move, Square Enix announced the cancellation of Kingdom Hearts Missing-Link, a GPS-based mobile spinoff originally announced in 2022. The company cited long-term service concerns as the main reason for discontinuation. Fans were reassured that development on Kingdom Hearts IV continues.


The Road Ahead: Restructuring and Refocus


Square Enix is now two years into its "Reboots and Awakens" strategy, designed to overhaul its development practices. This includes:


  • Centralizing development management under a unified studio structure

  • Cancelling underperforming or unfocused projects

  • Investing more heavily in promising titles

  • Focusing on talent mobility and cost optimization


The publisher plans to release major titles on a consistent basis by FY2028, with a firm emphasis on multiplatform launches across Nintendo, PlayStation, Xbox, and PC.


What’s Coming Next?


Looking ahead to FY2026, Square Enix expects sales to decline again to ¥280 billion, though operating income is forecast to remain steady. Upcoming titles include:


  • Bravely Default Flying Fairy Remaster (Nintendo Switch 2 launch title)

  • Dragon Quest I & II HD-2D Remake (Switch, PS5, Xbox Series X|S, PC)

  • The full Final Fantasy VII Remake trilogy on Switch 2

  • A China-only mobile version of Final Fantasy XIV


Rumors continue to swirl around possible projects like a Final Fantasy IX remake or a return to Chrono Trigger.


Transmedia and Beyond


Square Enix is also broadening its scope beyond games, with ventures into:



While the upcoming year might be quieter without a major Final Fantasy release or expansion, fans can look forward to the conclusion of the Final Fantasy 7 Remake trilogy, which has had its story completed according to series producer Yoshinori Kitase, though no release date has been announced.

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