Square Enix has raised its full-year financial forecasts after reporting stronger game sales and profitability during the six months ended September 30, 2026. The Final Fantasy and Dragon Quest publisher announced on November 11 that net sales increased 21.9% year over year to ¥163.18 billion, while operating income rose 42.2% to ¥38.79 billion.
The results represent further progress in Square Enix’s three-year restructuring strategy, which focuses on improving development efficiency, expanding major franchises across multiple platforms and increasing sales of existing games.
Square Enix now expects net sales of ¥310 billion for the fiscal year ending March 31, 2027, up from its previous forecast of ¥298 billion. Its operating income projection has increased from ¥49 billion to ¥59 billion, representing a 20.4% upward revision. The company also raised its expected annual profit attributable to shareholders from ¥31 billion to ¥37 billion.
In its official financial documents, Square Enix attributed the improved outlook primarily to stronger performance in its Digital Entertainment business, which includes console, PC, mobile and online games.
That division generated ¥97.6 billion in net sales during the six-month period, compared with ¥73 billion a year earlier. Operating income climbed from ¥20 billion to ¥32.8 billion, reflecting improvements across the company’s HD Games, MMO and mobile/PC browser businesses.
The HD Games business, which includes major console and PC releases, recorded particularly significant growth. Net sales increased from ¥24 billion to ¥35.6 billion, while operating income rose from ¥5 billion to ¥13 billion.
Square Enix credited stronger sales of both newly released games and older titles. Its recent releases include Final Fantasy VII Rebirth on Nintendo Switch 2 and Xbox Series X|S, The Adventures of Elliot: The Millennium Tales and several titles brought to Nintendo’s latest console.
Final Fantasy VII Rebirth arrived on Switch 2, Xbox Series X|S and Xbox on PC on June 3, 2026, expanding availability beyond its earlier PlayStation and PC releases. Square Enix described the game’s performance as solid, alongside continued growth in sales of its back catalog.
The publisher’s updated business strategy specifically identifies multiplatform releases as a contributor to improving HD Games profitability. Its November progress report highlights the expansion of major Final Fantasy titles to Nintendo Switch 2 and efforts to keep older releases commercially active.
This approach also benefits from the growing Nintendo Switch 2 audience. The console has reached 26.35 million units sold worldwide, providing publishers with another substantial platform for established franchises.
Square Enix’s MMO business also improved during the period, generating ¥25.7 billion in sales compared with ¥19.9 billion the previous year. Operating income reached ¥8.9 billion, up from ¥7.8 billion.
The company attributed the increase in MMO sales to improved player activity following the announcement of Final Fantasy XIV’s latest expansion. Final Fantasy XIV: Evercold is scheduled to launch on February 23, 2027.
Meanwhile, Square Enix’s mobile and PC browser gaming business generated ¥36.3 billion in sales and ¥10.8 billion in operating income, compared with ¥29 billion and ¥7.1 billion respectively a year earlier. The company attributed the improvement to contributions from newer titles.
The financial results also reveal a substantial increase in digital game purchases. Across Square Enix’s HD Games and MMO businesses, worldwide software unit sales reached 14.87 million during the six-month period, up from 9.93 million a year earlier.
Digital downloads accounted for 13.35 million units, compared with 8.55 million in the previous year. Physical software sales increased more modestly, from 1.38 million to 1.52 million units.
Digital purchases therefore represented approximately 89.8% of the company’s reported HD Games and MMO software unit sales, compared with approximately 86.1% during the corresponding period in 2025.
The shift was particularly noticeable in North America and Europe, where digital software sales rose from 5.83 million to 8.19 million units. Physical sales in those markets declined slightly from 1.09 million to 1.01 million.
These figures cover software units sold rather than revenue and include titles distributed by Square Enix as well as episodic releases. They do not represent every transaction across the company’s entire entertainment business.
Square Enix’s separate November 11 strategy update provides additional evidence of improving profitability. The HD Games operating margin reached approximately 37% in the latest six-month period, compared with 21% a year earlier. The company identified expanded multiplatform releases and stronger catalog sales as important contributors.
Catalog game sales increased to approximately 12.59 million units, compared with 8.48 million in the previous year’s first half. Square Enix intends to continue promoting established titles while developing new releases and reviving existing franchises.
The publisher’s plans include Final Fantasy VII Revelation, scheduled for April 2027, alongside additional Dragon Quest and Final Fantasy projects. Its expanding release strategy reflects a broader effort to make major games available across more platforms rather than concentrating primarily on individual console ecosystems.
The stronger financial results do not establish how much revenue each individual release generated, and Square Enix has not disclosed specific sales totals for Final Fantasy VII Rebirth’s Switch 2 and Xbox versions in these financial materials.
However, the newly reported figures show substantial improvements in game-related profitability during the company’s restructuring period. Square Enix’s higher full-year forecasts reflect that performance, while the publisher continues pursuing broader platform availability, stronger catalog sales and more efficient game development.
