Updated Mar 17, 2026 by Square Enix
Square Enix divested its Western studios, including Crystal Dynamics and Eidos Interactive, to Embracer Group for a ¥9.5 billion gain to fund internal development and emerging technologies like AI and blockchain.
Fiscal year 2023 financial performance saw net sales decline 6.0% to ¥343.3 billion and operating income drop 25.2% to ¥44.3 billion, primarily due to underperforming new titles and a lack of expansion packs for Final Fantasy XIV.
The company maintains a strong balance sheet with an equity ratio of 79.1% and cash reserves of ¥190.9 billion, providing a buffer for its strategic pivot.
The Amusement segment served as a key financial stabilizer, recording a 22.9% increase in sales as the Japanese market recovered from pandemic restrictions.
Future strategy focuses on leveraging stable recurring income from MMOs to subsidize high-cost HD game development, with a fiscal year 2024 sales target of ¥360 billion.
The company’s core franchises remain significant global drivers, with cumulative sales reaching 185 million units for Final Fantasy and 88 million units for Dragon Quest.
Square Enix divested its Western studios, including Crystal Dynamics and Eidos Interactive, to Embracer Group for a ¥9.5 billion gain to fund internal development and emerging technologies like AI and blockchain.
Fiscal year 2023 financial performance saw net sales decline 6.0% to ¥343.3 billion and operating income drop 25.2% to ¥44.3 billion, primarily due to underperforming new titles and a lack of expansion packs for Final Fantasy XIV.
The company maintains a strong balance sheet with an equity ratio of 79.1% and cash reserves of ¥190.9 billion, providing a buffer for its strategic pivot.
The Amusement segment served as a key financial stabilizer, recording a 22.9% increase in sales as the Japanese market recovered from pandemic restrictions.
Future strategy focuses on leveraging stable recurring income from MMOs to subsidize high-cost HD game development, with a fiscal year 2024 sales target of ¥360 billion.
The company’s core franchises remain significant global drivers, with cumulative sales reaching 185 million units for Final Fantasy and 88 million units for Dragon Quest.