Square Enix has released its financial results for the year ending March 31, 2025, with a drop in net sales attributed to the lack of comparable releases to games like last year’s Final Fantasy VII Rebirth.
Nonetheless, the company saw an increase in operating income and profit. Dragon Quest III HD-2D Remake also performed better than expected.
The company is continuing its three-year plan – as revealed this time last year – to optimise its development operations and put quality over quantity for its future game releases, as well as prioritising multiformat development.
The numbers

Net sales: ¥324.5 billion ($2.22 billion, down 8.9% year-on-year)
Digital entertainment sales: ¥206.54 billion ($1.42 billion, down 16.8% YoY)
Operating income: ¥40.58 billion ($278.1 million, up 24.6% YoY)
Profit attributable to owners of parent: ¥24.41 billion ($167.3 million, up 63.7%)

The highlights
HD-Games, a sub-segment of Square Enix’s business that includes its main console and PC releases, dropped in net sales this year but turned profitable due to “lower development cost amortisation, advertising expenses, content valuation losses compared with the same period of the previous year.”
As noted, too, the latest Dragon Quest release also contributed to the positive result. Other new HD-Games releases this past year included Life is Strange: Double Exposure and Visions of Mana.
The launch of Final Fantasy XIV’s Dawntrail expansion increased net sales and operating income in the company’s MMO (Massively Multiplayer Online) Game sub-segment.
Net sales and operating income declined for the Games for Smart Devices/PC Browser sub-segment, though, which Square Enix attributed to “weakness in existing titles and the recognition of royalty revenue in the previous fiscal year”. This was despite the release of new game Emberstoria.
Today, the company announced the cancellation of mobile title Kingdom Hearts Missing-Link on Twitter.
HD-Games collectively made ¥33.87 million in operating income, up 33% from the previous year.
The future

Image credit: Square Enix

Square Enix also provided an update on its three-year ‘medium-term’ business plan. “In FY2025, we fundamentally revamped our development organisation structure for domestic studios,” the report read.
“Based on the concept of integrated studio operations, we reviewed the entire process of title development progress management and changed to a system in which management and studios manage the development progress of all large-scale investment titles, promoting optimisation of the development portfolio and schedule, as well as talent mobility and development cost optimisation among in-house development personnel.”
The revised process has led to significant changes behind the scenes.
“Under the new management structure, we reviewed all projects at our domestic studios, including HDG and [Smart Devices] titles, and decided to discontinue development of some titles and invest additional funds in titles that require refinement, thereby steadily implementing a strategy of selecting and concentrating development resources.”
“We will continue to control the scale of development investment in a disciplined manner,” the company added.
The report underlined the approach of going into FY27 and beyond by putting multiple games on multiple platforms and releasing major titles on a consistent basis.
The company also called out the PC market as a highlight of the year when it came to catalogue sales, and a result of its new multiformat strategy. PC sales were responsible for more than a third of its Digital Entertainment sales in FY25, a double digit percentage increase on FY24.
Square Enix released Final Fantasy VII Rebirth on PC in January 2025 following its 2024 PC release, and also brought the Kingdom Hearts franchise to Steam for the first time in June 2024.
For FY26, Square Enix forecasts sales declining again to ¥280 billion, with operating income steady at ¥41 billion. Upcoming releases include Bravely Default Flying Fairy Remaster on Nintendo Switch 2 and Dragon Quest I & II HD-2D Remake.

Activision has filed a lawsuit against the creator of Call of Duty hacking software Lergware and GameHook.
As seen by IGN, the lawsuit was filed in the Central District of California against Ryan Rothholz.
The firm alleges that Rothholz developed and released Lergware between 2021 and 2022, and sold it to players on his website.
It also alleged that Rothholz updated the software to be compatible with Call of Duty: Modern Warfare 2 and Warzone in 2023.
As a result, Activision sent a cease and desist letter, which the company claims Rothholz posted on a Discord server and “openly mocked” the publisher.
“The update resulted in online player ‘attacks’ becoming increasingly frequent, causing some users to post warning messages online,” Activision said.
The company also accused Rothholz as creating GameHook, and alleged he recruited others including Collin ‘Cid’ Gyetvai and Jordan ‘Bossnight55′ Newcombe Boothey to resell the software for $50 a game or $375 for lifetime access.
“Activision is informed and believes, and on the basis alleges, that the defendants have received significant revenue from their activities, to the detriment of Activision and its player community,” the lawsuit read.
The firm said it had given those named the opportunity to respond to its demands of removing the software, but alleges that “each has ignored Activision’s outreach necessitating this lawsuit.”
Activision sent further cease and desist letters in March 2025. Online storefronts for Lergware and GameHook were shut down as a result, but Activision alleged that the defendants’ did not confirm if they’d stop creating or selling the software.
The publisher alleges that Rothholz, Gyetvai, and Boothey are continuing to distribute or sell the hack through private channels and servers.
As IGN reports, Activision is seeking “monetary damages, injunctive and other equitable relief, and punitive damages”.
“Activision works very hard to ensure that CoD games offer consistently compelling player experiences so that customers will remain engaged in CoD games, continue to play them for sustained periods of time, and be excited about future releases,” the company said.
“If players perceive that a game is unfair or that the multiplayer experience is not working properly, including because others are cheating or disrupting and/or hacking multiplayer servers, players may grow more frustrated with the CoD games, become less interested in playing and supporting them and may even stop playing entirely.”
It concluded: “Cheating and hacking therefore not only harms (and could even destroy) CoD player communities, but also impacts Activision’s ability to offer the fast paced, stable, high-quality online gameplay millions of fans have come to expect from Activision and the CoD games.”
Last May, Activision was awarded $14.4 million in damages and $292,912 in legal fees against cheats manufacturer EngineOwning.

Fandom is selling the website and video outlet Giant Bomb to two of its long-time staff, Jeff Bakalar and Jeff Grubb.
Financial terms were not shared as part of the announcement.
The news represents a shift from earlier this month, when Fandom said the site was undergoing a ‘strategic reset’ following a disagreement on new content guidelines that led to staff exiting the brand. This generated a heated response on social media platform BlueSky.
Now, Grubb and Bakalar have full ownership of the brand, including its operations. The site is financially supported by users.
“Giant Bomb is now owned by the people who make Giant Bomb, and it would not have been possible without the speedy efforts of Fandom and our mutual agreement on what’s best for fans and creators,” said Bakalar and Grubb in a joint statement.
“The future of Giant Bomb is now in the hands of our supporting community, who have always had our backs no matter what. We’ll have a lot more to say about what this looks like soon, but for now, everyone can trust that all the support we receive goes directly to this team.”
GameSpot owners Fandom said the move was a “strategic decision” to transition the brand “back to its independent roots”. “We’re confident Giant Bomb is in good hands and its legacy will live on with Jeff and Jeff,” the company said in a statement.
Giant Bomb first launched in 2008, founded by former GameSpot staff following the dismissal of editor Jeff Gerstmann.