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Strong Financial Results for Square Enix Video Games Drive Full Fiscal Year Forecast Increase

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Square Enix announced its financial results for the first half of the fiscal year, related to the period between April and September 2026.

According to the official release, net sales were 163,179 million yen (up 21.9% year-on-year), while operating income was 38,793 million yen (up 42.2% year-on-year).

Looking at the Digital Entertainment Business, which is Square Enix’s corporatese for video games, net sales were 97,681 million yen (up 33.7% year-on-year) and operating income was 32,854 million yen (up 63.5% year-on-year).

We can go even deeper: HD Games (corporatese for full-fledged single-player games for PC and consoles) saw 35.6 billion yen in net sales, up 48.33% year-on-year. Operating income was 13.0 billion yen, up 160% year-on-year.

This was driven by a solid performance of new games like the Final Fantasy VII Rebirth port for Nintendo Switch 2 and Xbox and The Adventures of Elliot: The Millennium Tales, on top of growing sales of games from previous fiscal years.

MMOs recorded 25.7 billion yen in sales, up 29.15% year-on-year, while operating income was 8.9 billion yen, up 14.10% year-on-year due to growing user activity in Final Fantasy XIV thanks to the announcement of the Evercold expansion.

Smartphone games also did well, with 36.3 billion yen in sales, up 25.17% year-on-year, and 10.8 billion yen in operating income, up 52.11% year-on-year.

We also hear that Square Enix attributes the improving trend in profitability for HD games to the expanded multiplatform releases and stronger catalog sales (games released in previous fiscal years).

Square Enix is making efforts to expand catalog sales (via strategic promotion) and establish a development structure that supports releasing new games regularly, on top of a focus on rebooting existing IP and creating and nurturing new IP.

Thanks to the strong performance achieved in the first six months of the fiscal year, particularly in its video game business, Square Enix increased its financial forecast for the full fiscal year to 310,000 million yen in net sales and 59,000 million yen in operating income.

Previously, it was 298,000 million yen in sales and 49,000 million yen in operating income.

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 already announced their financial results this quarter, including Koei Tecmo, Capcom, Microsoft, Konami, Marvelous, Sony, Nintendo, Sega, Take-Two, and Bandai Namco. You can expect more reports on this topic in the coming days and weeks.

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