Medium-term Business Plan: FY2025/3-FY2027/3

Square Enix’s medium-term business plan for the fiscal years 2025 through 2027 outlines a comprehensive three-year "reboot" strategy designed to transition the company toward long-term, sustainable growth. The core thesis centers on enhancing productivity within the Digital Entertainment segment, diversifying earnings through expanded customer touchpoints, and strengthening foundational management infrastructure. By shifting from a volume-based development approach to a quality-focused model, the company aims to achieve a consolidated operating margin of 15% by the fiscal year ending March 2027 and maintain a return on equity (ROE) of at least 10%.

To improve development efficiency, the company has fundamentally restructured its domestic studios, moving away from conventional business units toward an integrated management system that optimizes talent mobility and cost control. This includes a disciplined "select and concentrate" strategy for the development pipeline, which involves discontinuing underperforming projects while increasing investment in high-potential titles. Furthermore, the company is aggressively pursuing a multi-platform strategy, particularly for PC, and leveraging AI to streamline development processes. These operational changes are supported by a broader effort to consolidate intellectual property expertise, integrating merchandising and licensing functions to maximize the global reach of key franchises.

Financial discipline remains a cornerstone of the plan, with a total of 80 to 100 billion yen allocated for strategic investments, including M&A, AI, and data marketing. The company is simultaneously committed to shareholder returns, evidenced by a dividend policy linked to record-high profit levels and a planned three-for-one stock split in October 2025. By optimizing its development footprint and diversifying its entertainment offerings—ranging from transmedia collaborations to new leisure and amusement initiatives—the company intends to stabilize its earnings base and enhance capital efficiency over the three-year period.