Japanese gaming powerhouse Square Enix has recently disclosed a notable decline in net sales for the quarter ending June 2025, reporting a 15.2 percent decrease. The company’s revenue for this period reached Y59.3 billion (approximately 2 million), a performance attributed to the underwhelming sales of new titles.
Digital Entertainment Business Takes a Hit
Within its digital entertainment segment, which encompasses video games, Square Enix experienced a significant downturn, with net sales plummeting to Y32.9 billion (3.6 million), reflecting a year-on-year decline of 25 percent. The HD games sector, which includes console and PC titles, faced an even steeper drop, with sales falling by 27.6 percent to Y8.9 billion (.4 million).
Despite these challenges in sales, Square Enix reported a remarkable surge in operating profit, soaring to Y1 billion (.7 million). This figure marks a staggering increase of 1,900 percent from last year’s Y50 million (approximately 0,000), primarily driven by reduced development cost amortization.
MMO Sales Also Decline
In addition to the declines in other areas, the company noted a 23.2 percent decrease in net sales from its MMO segment, which totaled Y9.6 billion (.2 million). Square Enix acknowledged that the first quarter of its 2024 financial year saw the release of several new titles, including the initial three Kingdom Hearts games on Steam, which garnered a positive response. However, this year, the company appears to lack comparable releases that could stimulate sales growth.
