Square Enix reorganizes business and focuses on major titles

Square Enix disclosed its financial report for the fiscal year ended in March 2025, and the numbers reinforce a clear need: urgent changes. The company's net revenue dropped 8.9% compared to the previous year, signaling a performance below expectations for one of the biggest names in the gaming industry. As a result, the company announced a strategic restructuring that prioritizes larger productions, shorter development cycles, and more efficiency in the use of technology.

The highlight of the period was Dragon Quest III HD-2D Remake, which exceeded internal projections. Launched with a more modest production budget, the title managed to be profitable and helped keep the HD Digital Entertainment sector - the company's game division - in the black. However, the isolated performance of the remake was not enough to compensate for the lack of other heavyweight releases.

As part of the restructuring, Square Enix intends to "reboot and awaken" its operations. In practice, this means abandoning smaller-scale projects and focusing efforts on established franchises. Among the titles expected to lead this new phase are Final Fantasy VII Remake Part 3 and Kingdom Hearts IV. The goal is to deliver games with greater commercial and technical appeal, but with more agile and predictable development timelines.

"We will seek greater efficiency in development, establishing clearer schedules and focusing on the overall quality of releases," the company states in the report.

Another point that caught attention was the mention of using artificial intelligence to increase studio productivity. Although the report does not detail how AI will be applied, the expectation is that it will act in areas such as test automation, asset generation, or technical design support, which may generate mixed reactions among developers and the public.

The change in direction also aligns with the company's recent decision to invest in multiplatform releases, abandoning the strategy of exclusivity with a single platform. This move was initiated back in 2024, after weak results from games like Forspoken and Final Fantasy XVI, both with high budgets and sales below expectations.

With the future anchored in recognized franchises and a new operational vision, it remains to be seen if Square Enix will be able to recover commercially and regain its global relevance. The answer will come in the coming quarters - and in the upcoming releases.