A Square Enix shareholder accused the company's management of ineffective management
The Singaporean fund 3D Investment Partners, which owns 14.36% of Square Enix's shares, has criticized the company. It shared its observations in a 112-page presentation.
Final Fantasy VII Rebirth
Specifically, the shareholder stated that although Square Enix owns iconic franchises like Final Fantasy, its revenue has been declining in recent years. The company's profitability is also unsatisfactory.
According to 3D Investment Partners, the reasons for this lie in the weak results of the video game division. It pointed out that both console and PC games, as well as mobile and web games, are generating less revenue for Square Enix. Not to mention, in 2024, the company incurred significant losses from the cancellation of several titles.
3D Investment Partners is also dissatisfied with how Square Enix has structured its operations in other divisions: arcade and publishing.
"According to our objective analysis, the synergies between Square Enix's gaming and non-gaming businesses are insufficient to justify owning both," stated 3D Investment Partners.
The fund did not deny that Square Enix is attempting to rectify the situation. For example, a year and a half ago, Square Enix introduced a medium-term plan to improve its financial position. However, 3D Investment Partners believes it mainly contains vague wording and does not address the truly important issues.
3D Investment Partners called on other Square Enix shareholders to share their opinions and convey remarks to the company's management.
For reference, 3D Investment Partners is what's known as an "activist investor," who acquires stakes in companies to push through their interests. It began acquiring Square Enix shares in April 2025 and is now its second-largest shareholder after founder Yasuhiro Fukushima.