Square Enix experienced a 15.2% decline in net sales for the first quarter as new game releases failed to generate substantial revenue

Square Enix has published its financial outcomes for the quarter ending June 30, 2025, revealing declines in both net sales and profit compared to the same timeframe the previous year.

Revenues in the company's Digital Entertainment division, encompassing its video game segment, fell by 25%, attributed to lower sales from recent game titles.

Key financial details include:

Financial Summary

• Net Sales: ¥59.2 billion ($401 million), a reduction of 15.2% from the previous year
• Profit: ¥4.8 billion ($32.5 million), down 54.8% compared to last year
• Digital Entertainment Net Sales: ¥32.9 billion ($223 million), representing a 25% decline year-on-year

Key Highlights

The HD games division saw a 27.6% decrease in net sales, dropping to ¥8.9 billion ($60 million) from last year's ¥12.3 billion ($83.8 million).

During Q1 2024, three Kingdom Hearts titles were released on Steam, while this quarter featured the launches of the Bravely Default Flying Fairy HD remaster and Final Fantasy 16 for Xbox Series X|S.

Despite the sales slump, profits in the sub-segment rose, largely due to reduced development cost amortization and advertising expenditures.

The mobile and PC browser section saw net sales fall by 24.3% to ¥14.3 billion ($97 million) from ¥18.9 billion ($128 million) the year before. The downturn was blamed on "weak sales of existing titles," although a positive shift in profitability occurred thanks to "payment method diversification."

The MMO segment also reported declines, with net sales and profit falling to ¥9.6 billion ($65 million), down from ¥12.5 billion ($84.8 million) the prior year.

Conversely, the company's amusement segment experienced an 8.5% increase in net sales to ¥16.4 billion ($111.4 million), owing to a rise in year-on-year same-store sales and sales of prize items to amusement facilities.

Square Enix has maintained its full-year forecast, unchanged since it was last reported in May.