Square Enix's Q1 profit sees a significant increase after the release of Final Fantasy 7 Rebirth on Switch 2 and Xbox

Three characters stand looking up at a vibrant nebula and starfield, beneath an ornate, dark metallic archway.

Image credit: Square Enix

Square Enix achieved remarkable growth in the first quarter, with its profit soaring by 175.5% to reach ¥13.2 billion, equivalent to $82.9 million.

The impressive results were primarily driven by its Digital Entertainment division, where HD Games, MMO, and Smart Devices/PC Browser segments performed exceptionally well.

Financial Overview

  • Net sales: ¥78.4 billion ($492.3 million), reflecting a 32.3% increase
  • Operating income: ¥17 billion ($106.7 million), a rise of 88.6%
  • Profit: ¥13.2 billion ($82.9 million), an increase of 175.7%
  • Digital Entertainment net sales: ¥49.9 billion ($313.3 million), rising by 51.8%

Within the Digital Entertainment sector, operating income surged by 91.8% to reach ¥15.5 billion ($97.3 million), largely due to robust sales in HD Games.

HD Games sub-segment sales nearly doubled, up 98.8% to ¥17.7 billion ($111.1 million), compared to ¥8.9 billion ($5.8 million) during the same timeframe last year.

Operating income for this category increased dramatically by 510% to ¥6.1 billion ($38.2 million), a significant jump from ¥1.0 billion ($6.2 million) in the previous year.

This growth was fueled by the successful release of Final Fantasy 7 Rebirth on various platforms including Nintendo Switch 2, Xbox Series X|S, and the Microsoft Store, following its debut on PlayStation 5 in February 2024 and Windows in January 2025.

Sales gains were also supported by The Adventures of Elliot: The Millennium Tales and upticks in existing catalog titles.

Additional notable releases during the quarter were Octopath Traveler, its sequel on Switch 2, Star Ocean: The Second Story A for Switch 2, and Final Fantasy X/X-2 HD Remaster.

The MMO Game division saw net sales rise by 32.2% to ¥12.7 billion ($79.7 million), with operating income stable at ¥3.6 billion ($22.6 million).

Square Enix highlighted that this performance was due to heightened user engagement following the announcement of a Final Fantasy 14 expansion pack, with profits slightly increasing owing to early expenses recognized for a release scheduled in early 2027.

In the Smart Devices/PC Browser area, net sales increased by 35.6% to ¥19.4 billion ($121.8 million), while operating income advanced 72.7% to ¥5.7 billion ($35.7 million), driven by titles like Dissidia Duelum Final Fantasy and Dragon Quest Smash/Grow.

During the first quarter, a total of 7.38 million game units were sold, a rise from 4.01 million in the previous year. Of these, 0.73 million were physical copies, with 6.65 million being digital downloads.

Looking forward, Square Enix's forecast for the entire fiscal year remains unchanged, as detailed on May 14, 2026.

gamesindustry.biz
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