Square Enix reports profit increase in games sector driven by Final Fantasy 14 Dawntrail 

Square Enix recently published their financial results for the first half of the 2025 fiscal year. Between April and September 2024, their digital entertainment (video games) sector saw net sales decrease compared to last year due to console game releases in the period failing to achieve the sales highs of last year’s Final Fantasy XVI and Final Fantasy Pixel Remaster series. However, operating income was up, mainly thanks to Final Fantasy XIV’s Dawntrail expansion pack. 

For the MMO subsector, net sales were up 35.5％ year-on-year to 32.4 billion yen, while operating income rose 40.8% to 13.1 billion yen. Although this includes Square Enix’s other MMOs, like Dragon Quest X Online too, the major driver behind this increase in revenue was Final Fantasy XIV and the launch of the Dawntrail expansion pack on July 2, 2024. 

Development cost amortization and advertising expenses were also lower for Square Enix in the first half of the current fiscal year compared to the same period last year. These factors also contributed to the improved operating income of its Digital Entertainment Sector.  

Merchandising sales and operating profits also increased thanks to strong sales of new character goods from major IPs. This includes new releases in the Final Fantasy BringArts and PlayArts series of figures, as well as NieR: Automata figures. Net sales and operating income in the Merchandising segment amounted to 9,605 million yen (up 14.7％ year-on-year), and 3,384 million yen (up 80.9% year-on-year), respectively (Source: Consolidated Financial results). 

Last fiscal year (April 2023 to March 2024), Square Enix suffered significant losses due to big console titles like Final Fantasy VII Rebirth and Foamstars failing to meet expectations, as well as extraordinary losses from the cancellation of in-development titles. With its mid-term business plan for March 2025 to 2027, Square Enix is shifting towards multiplatform releases and a quality over quantity approach in its game development. 

Square Enix Holdings’ overall financial results for the first half of the 2025 fiscal year are as follows (Source: Financial results press release): 

Net sales: 157,591 million yen (down 8.4% year-on-year)  
Operating income: 21,176 million yen (up 22.1% year-on-year)  
Ordinary income: 18,141 million yen (down 30.6% year-on-year)  
Net Profit: 11,750 million yen (down 29.3% year-on-year)