Video game publishing conglomerate Square Enix published its financial report (per GI.biz) for the nine-month period ended December 31, 2025, confirming a decline in net sales. The multinational studio, behind cult role-playing franchises like Final Fantasy, attributes the lower figures to suboptimal sales of its newest releases. Despite this, Square Enix reported a 39 percent jump in operating income to ¥46.3 billion ($295.7 million) driven by increased sales of existing titles.
While Square Enix saw a nearly 24 percent year-on-year (YoY) decline in net sales, the company’s Digital Entertainment segment saw YoY profitability increase. “Net income rose only slightly due to the recognition of extraordinary losses,” the report reads. Operating income for this segment increased by about 28 percent to Â¥35.5 billion ($226.6 million).
Square Enix, by the numbers
- Net sales: -13.3% (Â¥215.4 billion, or about $1.3 billion)
- Profit: +3.6% (Â¥25.6 billion, or around $163.4 million)
- Digital entertainment net sales: -23.7% (Â¥112.3 billion, or about $717 million)
In Square Enix’s massively multiplayer online gaming (MMO) segment, revenue and profits declined from the previous year. “Due to the release of the FINAL FANTASY XIV expansion pack in the previous year,” the report says, “both net sales and operating income decreased Year on Year.”
Operating income for the brand’s smart-device and PC browser games sector increased YoY, “mainly as a result of improved profitability stemming from diversification of payment methods.” Net sales, however, fell from Â¥56.3 billion ($361.4 million) to Â¥41.7 billion ($267.7 million). Square Enix cited “weakness in existing titles” as a primary factor behind the decline.
As for merch, Square Enix reports a YoY increase “driven by the recognition of royalty income from key IP.” The presentation cites positive reception around “major products” in FY2026/3, namely its Final Fantasy collaboration with Wizards of the Coast’s popular trading card game, Magic: The Gathering.
Ultimately, Square Enix’s nine-month report exceeded expectations, driving the brand to revise its forecast for the fiscal year ending March 31, 2026. The company’s sales forecast of Â¥280 billion (or $1.7 billion) remains, but Square Enix now anticipates profits of Â¥55 billion (or $351 million) — up around Â¥14 billion ($89.9 million) from previous expectations of Â¥41 billion ($261.7 million).
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