Square Enix's premium and MMO games are growing, but overall revenue is fallingSquare Enix's premium and MMO games are growing, but overall revenue is falling

Square Enix's financials for the first three quarters of the 2024-2025 fiscal year show the developer continues to face year-over-year declines.

As of December 31, 2024, overall net sales were ¥248.5 billion (or $1.6 billion), down 3.5 percent year-over-year. Profit amounted to ¥24.7 billion ($162.7 million), a 7.5 percent yearly decline.

The Digital Entertainment business was ¥160.3 during these nine months, down 10.7 percent from 2023-2024, and a 13 percent drop from the nine-month period in 2022-2023. According to Square Enix, net profits fell this year due to "weakness in existing titles in Games for Smart Devices/PC Browser."

Net sales and operating income for that category were ¥56.3 billion and ¥5.6 billion respectively, respective drops of about about 28 percent (for a total of ¥21.7 billion), and about 58 percent (for a total of ¥7.9 billion) from the year before. Square said operating income's "sharp" decline was owed to "weakness in existing titles, royalty revenue recognized the previous fiscal year, and a content production account valuation write-down."

Square Enix's digital entertainment sales have declined the last three fiscal years.

However, it acknowledged profits and operating income rose for its HD (or premium) and MMO game divisions. Despite lower year-over-year net sales, HD games' operating profits were ¥4.6 billion, up ¥1.7 billion from last year (a 45 percent increase). Dragon Quest III HD-2D Remake was a noted highlight, and the company reported "stronger than expected" sales. As of early December, the RPG sold 2 million copies worldwide.

Square Enix did not provide sales numbers for third-quarter HD game releases like Life is Strange: Double Exposure and Fantasian: Neo Dimension—both released during the same nine-month period.

Meanwhile, MMOs saw increases in net sales (¥44 billion, up 26 percent year-over-year for a total of ¥9.2 billion) and operating income (¥17.3 billion, a 20 percent year-over-year increase of ¥2.9 billion). Final Fantasy XIV and Dragon Quest X are the studio's "main titles in operation": the former's Dawntrail expansion released in July (and came to Xbox Series X|S that spring), and the latter had a major 7.3 update in January 2025.

In its consolidated results, Square Enix said its forecast for the full fiscal year, which ends on March 31, 2025, has not changed.