"Weakness in existing titles" as Square Enix’s net sales fall 13% Y/Y

• Square Enix’s net sales fell by more than 13% during the first three quarters of the fiscal year.
• Operating income increased by 39% and ordinary income by 41%.

Square Enix’s net sales fell by more than 13% during the first nine months of its current fiscal year.

The Japanese publisher generated ¥215.4 billion ($1.4bn) in net sales during the period, down from ¥248.5bn ($1.6bn) over the first nine months of the year prior. This continued fall has come even following Square Enix’s five-year net sales low last fiscal year.

Square’s digital entertainment category, which consists predominantly of games, accounted for 57% of total sales or ¥122.3bn ($787.7 million) over the first three quarters of the current year. The sum marked a 24% decline year-over-year.

Games for smart devices and PC browsers were specifically highlighted for their decline Y/Y, down by an unquantified amount. Square Enix attributed this to "weakness in existing titles", after the subcategory also fell over the first three quarters of the previous fiscal year.

The silver lining

Despite an overall net sales decline and falling sales across mobile, PC browser, MMOs and HD games categories, the first nine months of this fiscal year did see growth in operating income. Overall, this was up 39% Y/Y to ¥46.4bn ($299.1m).

Digital entertainment accounted for ¥35.5bn ($229m) in operating income, a rise of 28% Y/Y. Notably, this was due to increases across HD games and mobile and PC browser categories, whereas operating income declined for MMOs specifically.

Furthermore, Square Enix’s ordinary income increased by 41% Y/Y to ¥53.1bn ($342.8m) and profit by almost 4% to ¥25.6bn ($165m). With three months still to go, both these sums have already surpassed last year’s full fiscal year results.

The current fiscal year’s mixed results have come during the second year of Square Enix’s reboot strategy, intended to lay the foundations for long-term growth by March 2027. Today’s rising operating income and falling net sales are the inverse of Square’s results at the time this plan was laid out.

In late 2025, Square Enix revealed plans to close its overseas studios and shift game development resources to Japan, where 52% of its digital entertainment sales are generated.