Square Enix Holdings Financial Results Briefing: Fiscal Year Ended March 31, 2024

Square Enix faced a difficult fiscal year ending March 31, 2024, characterized by a decline in operating income to ¥32.5 billion. This downturn was primarily driven by the underperformance of several high-definition game titles and substantial impairment losses related to content production. While the Amusement and Publication segments provided stable growth, the overall financial results fell short of established medium-term targets, necessitating a fundamental shift in corporate strategy to address profitability challenges within the Digital Entertainment division.

To rectify these performance issues, the company has initiated a three-year "Reboot and Awaken" business plan. This strategy prioritizes a transition from a volume-based development model to one focused on quality and project curation. Central to this transformation is the adoption of a multiplatform release strategy and the consolidation of internal development and marketing functions to enhance operational efficiency. As part of this restructuring, the company recognized ¥38.8 billion in impairment losses to clear its development pipeline and streamline future output.

Looking toward the fiscal year ending March 2027, the company aims to achieve a 15% consolidated operating margin and a minimum 10% return on equity. Financial planning for the next three years includes a capital allocation of ¥80–¥100 billion dedicated to strategic mergers, acquisitions, and shareholder returns. For the upcoming fiscal year, the company forecasts ¥310 billion in sales and ¥40 billion in operating income. By emphasizing disciplined investment and organizational optimization, the company seeks to stabilize its foundation and ensure long-term value creation across its core intellectual property portfolio.