[Square Enix FY26/3 1H Results] Net profit decreased due to organizational restructuring, but operating profit increased due to improved profitability

Thick Thighs Save Lives

NeoGAF's Physical Games Advocate Extraordinaire
Sources - Famitsu (Machine Translated); Square Enix for the EN slides

Square Enix Holdings announced its consolidated financial results for the second quarter (interim period) of the fiscal year ending March 2026.

While sales fell to 133,895 million yen (down 15.0% year-on-year), operating profit increased to 27,278 million yen (up 28.8% year-on-year). Ordinary profit was 28,553 million yen (up 57.4% year-on-year). Due to the recording of reorganization expenses of 9,849 million yen as an extraordinary loss, interim net profit was 10,052 million yen (down 14.5% year-on-year).

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In the Digital Entertainment business, HD games saw a decrease in revenue compared to the same period last year. This was largely due to the impact of the Steam version of the Kingdom Hearts series, which was released the previous year, and appears to have been a reactionary result. On the other hand, amortization of development costs and advertising expenses decreased from the previous year, and the business's operating profit turned from a loss in the previous year to a profit.

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MMO saw a decrease in revenue and profit compared to the same period last year due to the release of the latest expansion pack for Final Fantasy XIV, Dawntrail, last year. Although sales of smart device and PC browser-related content decreased compared to the same period last year, profits increased due to improved profitability resulting from the diversification of payment methods.

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Lack of big releases and late porting money made HD games back in black
Mobile is shrinking as SE have nothing to offer there against Chinese onslaught, their games lack both quality and uniqueness, unlike CyGames for example
MMO slightly down over 2 years ago (to eliminate expansion impact)
 
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Going back in time to release a Switch 2 game before the system even launched. That is some impressive ambition!
They are correct just that it leaked into our timeline but in Zack's timeline it released on Jan 22, 2025. Things just got messed up and the reporting from Square landed in our timeline
 
Just read that Square wants 70% of its QA and debugging to be handled by generative AI in two years. That might help their finances but I doubt it will help with the quality of their games (though if they focus only on remakes and remasters I guess they got a point, it's the same game again and again).
 
This is what I figured on the short term reboot. Looks like Squeenix should be heavy on the big name releases early next gen. Until then I expect probably some more remasters/remakes. For the love of god, let me play Chrono Trigger on my ps5 somehow, even just a port lol
 
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