Square Enix has released its financial results for the three months ended June 30, 2025, reporting declines across its net sales and profit compared to the same period last year.
There was a 25% decline in revenue in its Digital Entertainment section – which includes its video game business – due to new titles generating lower sales.
Here’s what you need to know:
The numbers
- Net sales: ¥59.2 billion ($401 million), down 15.2% year-on-year
- Profit: ¥4.8 billion ($32.5 million), down 54.8% year-on-year
- Digital Entertainment net sales: ¥32.9 billion ($223 million), down 25% year-on-year
The highlights
Square Enix noted a 27.6% drop in net sales for its HD games subsection to ¥8.9 billion ($60 million), compared to the ¥12.3 billion ($83.8 million) generated during the same period last year.
The firm noted that Q1 2024 saw the release of three Kingdom Hearts catalog titles on Steam, whereas this quarter saw the launch of Bravely Default Flying Fairy HD remaster and Final Fantasy 16 on Xbox Series X|S.
However, Square Enix did experience an increase in sub-segment profits during its first quarter “mainly due to lower development cost amortisation and advertising expenses”.
Looking at its mobile and PC browser subsection, net sales declined by 24.3% to ¥14.3 billion ($97 million) compared to ¥18.9 billion ($128 million) last year.
Square Enix attributed this decrease to “weak sales of existing titles”, while also noting that profits increased due to “payment method diversification” resulting in “improved profitability.”
The company’s MMO segment also saw declines in net sales and profit, dropping to ¥9.6 billion ($65 million) compared to ¥12.5 billion ($84.8 million) during the same period last year.
Elsewhere, net sales of Square Enix’s amusement segment rose 8.5% to ¥16.4 billion ($111.4 million) due to “a year-on-year increase in same-store sales and sales of prize items to amusement facilities.”
Looking ahead, the firm announced no changes to its forecast for the full year, which were announced during its financial report in May.