Square Enix Holdings Financial Results: Fiscal Year Ended March 31, 2022

Square Enix Holdings reported record-breaking financial results for the fiscal year ended March 31, 2022, characterized by growth across all primary business segments. The company achieved net sales of 365.2 billion yen and an operating income of 59.2 billion yen, representing year-over-year increases of 32.7 billion yen and 12.0 billion yen, respectively. These figures mark the highest full-year results in the company's history, driven largely by the strong performance of the Digital Entertainment segment, specifically the expansion of the Final Fantasy XIV franchise.

The Digital Entertainment segment remained the primary revenue driver, contributing 279.6 billion yen in sales. While HD game releases did not match the volume of the previous fiscal year, the MMO category saw significant gains following the release of major expansion packs. The Amusement segment successfully transitioned from a loss to a profit as pandemic-related restrictions eased, while the Publication and Merchandising segments also posted year-over-year growth. The company’s balance sheet remained robust, with cash and deposits increasing to 163.0 billion yen.

Strategic initiatives for the period focused on optimizing the corporate structure and preparing for future industry shifts. A major development included the announced divestiture of select overseas studios—specifically Crystal Dynamics, Eidos-Montréal, and Square Enix Montréal—along with associated intellectual property, to the Embracer Group for 300 million dollars. This move is intended to streamline resource allocation, improve profitability, and facilitate increased investment in emerging domains such as blockchain, artificial intelligence, and cloud gaming. Due to the pending impact of this divestiture, the company has deferred issuing financial forecasts for the fiscal year ending March 31, 2023, until a reliable assessment can be completed.