Square Enix has reported a mixed financial outcome for the first half of fiscal year 2025. The company’s revenue reached ¥157.5 billion for the period ending September 2024, marking an 8.4% decline year-over-year. Despite the dip, operating profit rose by 22%, which the company attributes to strategic cost management and increased profitability within key segments.
The Digital Entertainment sector, which includes video games, earned ¥98.1 billion, accounting for 62% of Square Enix’s total revenue. However, revenue within this segment declined by 19.6% compared to the previous year, reflecting challenges in both the HD Games and mobile subsegments.
A standout within the Digital Entertainment segment was the MMO subsegment, largely driven by Final Fantasy XIV and its highly anticipated expansion Dawntrail, which launched on July 2, 2024. This expansion led to a 35.5% increase in MMO revenue, reaching ¥32.4 billion, with operating profit up 40.8% to ¥13.1 billion. Meanwhile, the HD Games subsegment, which includes recent PC and console releases, saw a sharp revenue decline of 37% to ¥27.5 billion, resulting in an operating loss of ¥1.2 billion. Mobile and browser game revenues also fell by 29.7%, totaling ¥38.2 billion.
Square Enix’s merchandise segment, in contrast, showed strong growth. Sales from character goods, particularly from popular franchises like Final Fantasy and NieR: Automata, contributed to a 14.7% rise in merchandise revenue, reaching ¥9.6 billion, with profits soaring by 80.9%.
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