Square Enix reports 9.9% drop in game sector operating profit despite strong sales of Final Fantasy XIV Dawntrail and Dragon Quest III HD-2D Remake

On February 7, Square Enix published its consolidated financial results for the first nine months of the fiscal year ending March 31, 2025. Revenue-making highlights were the Final Fantasy XIV Dawntrail expansion and the higher-than-expected sales of Dragon Quest III 2D-HD Remake.  

In Square Enix’s Digital Entertainment sector (video games), net sales declined 10.7% to 160,386 million yen and operating income fell 9.9% to 27,689 million yen. This decline was due to the weak performance of mobile and browser-based games, as well as new titles failing to achieve the same sales levels that Final Fantasy XVI, Final Fantasy Pixel Remaster, and Dragon Quest Monsters: The Dark Prince did in the previous year. 

However, unexpectedly high sales of November 2024 release Dragon Quest III HD-2D Remake were credited as one of the main drivers of the sub-section’s operating income. 

MMO profits increased year-on-year thanks mostly to the strong performance of Final Fantasy XIV Dawntrail. Net Sales for MMOs increased by over 9 billion to 44 billion yen, and operating income was up 2.9 billion to 17.3 billion yen.  

Square Enix’s publishing sector remained stable but saw a dip in profits. This was due to preparations for new releases and The Apothecary Diaries’ sales declining compared to last year, when the anime was hugely popular (it also worth noting that the mangaka was involved in a well-publicized tax evasion scandal in April 2024).  

Sales and operating profit for Square Enix’s merchandise rose thanks to brisk sales of new products from popular series like Final Fantasy, Dragon Quest and NieR. 

Square Enix’s overall financial results for the first nine months of the fiscal year ending March 31, 2025 were as follows: 

Net sales: 248,519 million yen (down 3.5% year-on-year). 
Operating profit: 33,381 million yen (down 4.4% year-on-year). 
Recurring profit: 37,759 million yen (down 7.7% year-on-year). 
Net profit: 24,718 million yen (down 7.7% year-on-year) 

The full-year forecast remains unchanged: 

Net sales: 310 million yen (down 13.0% year-on-year) 
Operating profit: 40 million yen (up 22.9% year-on-year) 
Recurring profit: 40 million yen (down 3.7% year-on-year) 
Net profit: 28 million yen (up 87.8% year-on-year)