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Square Enix
Square Enix achieved net sales of ¥324.5 billion and an operating income of ¥40.5 billion for the fiscal year ending March 31, 2025. While total revenue experienced a slight decline, the company successfully improved profitability by pivoting from a volume-based production model to a quality-focused strategy. This transition involved reducing content write-downs and leveraging the strong performance of the Amusement segment alongside the successful launch of the Dragon Quest III HD-2D Remake. Although the Digital Entertainment segment faced headwinds from a sparse release schedule and aging mobile titles, the company maintained stability through consistent MMO revenue and increased digital catalog sales.
The company is currently executing a three-year reboot plan scheduled to conclude in March 2027, which prioritizes organizational restructuring and operational efficiency. By shifting from traditional business divisions to a model categorized by business type, the firm aims to consolidate expertise and enhance productivity. Central to this strategy is a transition toward a multi-platform release approach, the integration of generative AI into development workflows, and a more rigorous curation of the title portfolio. These structural changes are designed to optimize the global development pipeline and maximize the long-term value of core intellectual properties.
Looking toward the fiscal year ending March 31, 2026, the company forecasts net sales of ¥280 billion and an operating income of ¥41 billion. Management remains committed to diversifying earnings through transmedia collaborations, global licensing initiatives, and enhanced customer engagement across gaming, publication, and amusement segments. To support these objectives, the firm is overhauling its management accounting and human resources systems while maintaining a balanced approach to capital allocation. This includes a commitment to consistent shareholder returns, evidenced by a dividend of ¥129 per share and a planned 3-for-1 stock split intended to improve market liquidity.
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