Square Enix announced its financial results for the first half of the fiscal year, related to the period between April and September 2025.
According to the press release, net sales for the whole company were 157,591 million yen (down 8.4％ year-on-year).
Operating income was 21,176 million yen, up 22.1％ year-on-year.
Looking at the Digital Entertainment business, which includes games, net sales were 98,151 million yen, down 19.6％ year-on-year.
Operating income was 16,834 million yen, up 8.5% year-on-year.
Net sales were down mostly due to the launch of major titles in the HD Games sub-segment, which includes consoles and PC. Operating income was up due lower development cost amortization and lower advertising expenses, alongside the release of Final Fantasy XIV’s expansion Dawntrail.
Interestingly, we get a rare breakdown of the three sub-segments of the Digital Entertainment business.
HD Games are actually bleeding money. Net sales during the first half of the year were 27.5 billion yen, 16.2 billion yen less than the 43.7 billion recorded in the previous fiscal year. The sub-segment recorded an operating loss of 1.2 billion yen, albeit it’s still 2.4 billion better than the previous year when it lost 3.6 billion yen.
The MMO subsegment saved the day mainly thanks to Dawntrail, with net sales that were 32.4 billion yen, 8.5 billion yen more than the 23.9 billion yen recorded in the previous fiscal year. Operating income was a 13.1 billion yen, 3.8 billion more compared to the 9.3 billion yen recorded last year.
Mobile games recorded 38.2 billion yen, down 16.2 billion yen compared to the 54.4 billion recorded last year. Operating income was 4.8 billion yen, down 4.9 billion compared to last year’s 9.7 billion. This is mostly due to the weakness of existing mobile titles.
Basically, HD games actually lost money for Square Enix, and it turns out that they have been losing money for a while. Mobile games didn’t do as badly, but their performance declined considerably. Final Fantasy XIV and its expansion Dawntrail (alongside Dragon Quest X, albeit we don’t know how much that contributed) are pretty much saving the day, bringing in the lion’s share of the profits.
If you’d like to compare with historical data, you can check out Square Enix’s financial results from the previous quarter, announced in August.
Other gaming companies have also already announced their latest financial results, including Koei Tecmo, Capcom, Electronic Arts, Ubisoft, Microsoft, Konami, Marvelous, Nintendo, Bandai Namco, Take-Two, Krafton, Warner Bros. Discovery, Sega, and Sony.
