3D Investment Partners, a Singapore-based activist investment fund, has published a 100-page presentation highlighting issues in Square Enix’s management (as reported by BusinessWire). As a major shareholder of the game company (owning a 14.36% stake), 3D Investment is calling on other shareholders to join them in “sharing frank opinions” on Square Enix’s ongoing issues. Their purpose is to “pursue constructive dialogue” with the company’s leadership.
Given that 3D Investment Partners is known for being an “activist” investor (an investor who seeks to buy significant stakes in companies in order to influence how they are managed, often targeting underperforming or poorly managed companies), people have been curious about what moves they’ll make on Square Enix ever since they first started acquiring shares in April this year. At the time, 3D Investment said its purpose was “pure investment, and depending on circumstances, to offer advice or make significant proposals to management.” Now, it seems they’ve finally decided to make bolder moves towards influencing the company’s operations.
In the new announcement, the fund argues that despite being a national brand who owns world-class franchises like Final Fantasy and Dragon Quest, Square Enix has been facing stagnant revenue growth and weak profit margins over the past three years, especially compared to peers like Nintendo, Capcom, Bandai Namco and Konami.
3D Investment blames this on the underperformance of Square Enix’s console and mobile game sectors, as well as exceptionally large write-downs related to cancelled games. Interestingly, they also consider the company’s arcade and publishing sectors to be “non-synergistic” businesses that are ultimately pulling down the company’s value with lackluster performance.
Although Square Enix’s plan is to “Reboot” with its new mid-term strategy for fiscal years 2025 through 2027, 3D Investment implies this plan is insufficient and too vague. Some of the issues cited are a lack of a concrete vision for long-term recovery, low-balled improvement margins, and a lack of concrete execution plans or KPIs for measures meant to address the company’s problems.
It seems that 3D Investment already approached Square Enix’s CEO Takashi Kiryu with an analysis of these problems and proposal for improvements back in October 2025, but was not satisfied with the response (allegedly, they only got a brief email that insisted the current plan was adequate). As a result, they’ve turned to making things public and getting other shareholders on board, which is a common method activists use to lobby for their initiatives.
That’s not to say that Square Enix is obligated to listen. For example, Japanese mobile game giant GungHo has been facing similar pressure from activist investors, with major shareholder Strategic Capital repeatedly asking for the company to fire its CEO through scalding public announcements. On the other hand, GungHo has persistently rejected such proposals. How Square Enix’s responds to 3D Investment Partners’ initiatives remains to be seen.
