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Square Enix Holdings has released its Annual Report for the fiscal year ended March 31, 2025, outlining a year of organisational restructuring, tighter cost control and a renewed long-term vision. The company reported net sales of RM 9.7 billion, reflecting an 8.9 percent decrease from the previous fiscal year. Despite the dip in sales, operating income rose to RM 1.2 billion, while ordinary income reached RM 1.2 billion. Profit attributable to owners of the parent increased significantly to RM 730 million, marking a strong 63.7 percent year-on-year improvement.
By the end of FY2025, total assets stood at RM 12.5 billion, with total net assets of RM 10.1 billion. The company’s equity ratio strengthened to 80.7 percent, supported by a disciplined capital strategy and a three-for-one stock split executed in October 2025.
Performance of Square Enix’s Big Three Franchises
One of the key highlights of the annual report is the updated lifetime sales performance of Square Enix’s flagship franchises. These long-running series continue to serve as the company’s foundation, both in global brand identity and long-term revenue stability.
Final Fantasy remains the company’s crown jewel with 204 million units sold globally, reflecting the franchise’s enduring cultural presence across multiple generations of players. Dragon Quest, while far more Japan-centric, maintains remarkable strength with 95 million units sold, reaffirming its status as one of the country’s most beloved RPG series. Kingdom Hearts, the action-RPG collaboration with Disney, has reached 38 million units sold, demonstrating consistent appeal despite its more spaced-out release cycle.
Together, these three franchises remain essential pillars in Square Enix’s long-term IP strategy and cross-media expansion efforts.
Digital Entertainment Segment
The Digital Entertainment division, responsible for the company’s core game development and publishing, accounted for 63.6 percent of annual revenue. The segment recorded RM 6.2 billion in net sales and RM 1.0 billion in operating income. Sales were lower compared to the previous year due to fewer blockbuster releases, but profitability improved thanks to reduced marketing costs and lower development amortisation.
“Dragon Quest III HD-2D Remake,” released in November 2024, exceeded expectations and served as a key sales driver late in the fiscal year. Meanwhile, the MMO sub-segment experienced solid growth with the launch of “Final Fantasy XIV: Dawntrail,” which contributed to improved recurring revenue.
The smart-device and PC browser segment, including titles such as “Emberstoria,” faced a downturn due to aging catalog titles and the loss of royalty income recognized in the prior year.
Amusement, Publication and Merchandising
The Amusement business generated RM 2.1 billion in net sales, supported by stronger same-store performance and successful arcade machine releases tied to major IP. Operating income rose to RM 230 million.
In the Publication segment, the company recorded RM 920 million in sales and RM 330 million in operating income. While the boost from the previous year’s popularity of “The Apothecary Diaries” naturally softened, the segment remained steady with strong backlist performance.
The Merchandising division reported RM 570 million in net sales and RM 180 million in operating income. New character merchandise and collector-focused releases contributed to stable revenue throughout the year.
Strategic Direction and 3-Year Reboot
FY2025 marked the first year of Square Enix’s three-year “reboot,” aimed at strengthening development efficiency and reorganising global operations. Key initiatives included merging Japan-based studios under one management structure, broadening the company’s multi-platform strategy and expanding global IP touchpoints through stronger licensing, merchandising and cross-media efforts.
The leadership emphasised that the foundation laid this year is meant to shift the company from volume-driven development to a higher-quality, more selective pipeline. With a healthier financial base, streamlined production structure and reinforced global strategy, Square Enix aims to deliver more consistent, high-impact releases tied closely to its core franchises.
Looking ahead, the company plans to leverage the global strength of Final Fantasy, Dragon Quest and Kingdom Hearts while investing in new IP opportunities shaped by advances in AI, evolving gaming ecosystems and international audience growth.
If you’re interested by the full report by Square Enix, you can read it up here.
