Square Enix has officially reported that its renewed multiplatform strategy and catalog expansion are beginning to yield tangible financial benefits, with the company’s HD Games segment returning to profitability.
According to its progress report on its Medium-Term Business Plan from the 3rd Quarter of FY2025 to the 3rd Quarter of FY2027, Square Enix is entering a new phase of growth under the theme “Square Enix Reboots and Awakens.” The report highlights that the company’s decision to release major titles across multiple platforms, including PlayStation 5, Xbox Series X|S, Nintendo Switch 2, and PC, has significantly expanded its player base and improved earnings stability. Recent releases such as Final Fantasy VII Rebirth, Romancing SaGa 2: Revenge of the Seven, and Dragon Quest III HD-2D Remake have all benefited from simultaneous or staggered multi-platform launches.
Square Enix attributes much of its success to a diversified approach to customer engagement, which includes catalog title sales, merchandising collaborations, and cross-media initiatives. Catalog sales within the HD Games business increased 31% year-over-year, underscoring the enduring appeal of existing IPs. The company also reported record-breaking results from its merchandising efforts, such as the Final Fantasy x Magic: The Gathering collaboration and new overseas retail expansions under the TAITO brand.
Internally, Square Enix has been implementing major structural reforms aimed at improving efficiency and profitability. The company consolidated its overseas publishing divisions, from eleven down to four, achieving projected annual cost savings of over 3 billion yen. Additionally, the report confirmed ongoing investments in AI-driven game development tools through joint research with the University of Tokyo’s Matsuo-Iwasawa Laboratory, targeting automation of up to 70% of QA and debugging tasks by 2027.
With a focus on “quality over quantity,” the company plans to stabilize its release cadence of large-scale titles while maintaining a balanced approach to growth investment and shareholder returns. The report projected continued profitability through the 3rd Quarter of FY2026 for Square Enix, validating its multiplatform strategy.
