Updated Mar 21, 2026 by Square Enix
Square Enix acquired Taito Corporation in FY2006, driving a 68.5% increase in net sales to ¥124.5 billion.
Operating income declined 41.4% to ¥15.5 billion due to console lifecycle transitions, underperforming titles, and a ¥3.9 billion goodwill write-down for UIEvolution.
The Taito acquisition increased total assets to ¥284.3 billion but required the issuance of ¥50 billion in corporate bonds and resulted in initial operating losses within the new Amusement segment.
Flagship titles *Final Fantasy XII* and *Kingdom Hearts II* were key revenue drivers, shipping a combined total of over 3.6 million units.
Foreign investment in the company grew significantly, rising from 4.46% to 19.65% over a two-year period.
Management shifted toward a 'community management' strategy, focusing on multi-platform delivery, network-compliant entertainment, and applying game technology to sectors like education and IPTV.
Japan remained the dominant market, accounting for 87% of total sales, while the company set a long-term goal of achieving a 20% operating income ratio.
Square Enix acquired Taito Corporation in FY2006, driving a 68.5% increase in net sales to ¥124.5 billion.
Operating income declined 41.4% to ¥15.5 billion due to console lifecycle transitions, underperforming titles, and a ¥3.9 billion goodwill write-down for UIEvolution.
The Taito acquisition increased total assets to ¥284.3 billion but required the issuance of ¥50 billion in corporate bonds and resulted in initial operating losses within the new Amusement segment.
Flagship titles *Final Fantasy XII* and *Kingdom Hearts II* were key revenue drivers, shipping a combined total of over 3.6 million units.
Foreign investment in the company grew significantly, rising from 4.46% to 19.65% over a two-year period.
Management shifted toward a 'community management' strategy, focusing on multi-platform delivery, network-compliant entertainment, and applying game technology to sectors like education and IPTV.
Japan remained the dominant market, accounting for 87% of total sales, while the company set a long-term goal of achieving a 20% operating income ratio.