Square Enix’s latest Q1 2025 financial report shows a significant drop in the MMO category, with Final Fantasy XIV being the main reason. The MMO sales fell by ¥2.9 billion (about -23% year-over-year), and operational profits also dropped by ¥3 billion (-45%)!
The company explains that this is a huge change compared to last year, when the release of FFXIV’s previous expansion (Endwalker) helped increase numbers. This time, it is quite the opposite.
The information comes from Square Enix shareholder Yuzu on X/Twitter and was translated from Japanese by @aitaikimochi.
Shareholder Concerns
Square Enix shareholder Yuzu commented that something needs to be done for FFXIV to regain its popularity and player base, as it remains one of the most important assets for the company’s HD games business.
They also warned that the current rise in the company’s stock price are just driven by activist funding. They do not reflect the true health of Square Enix’s business.
Overall Company Performance
If we take a look at the bigger picture, we can see that the HD games division also saw a drop in revenue. This is due to fewer major releases compared to last year. However, they managed to keep some profits thanks to cost cuts. Overall, the numbers are still much lower than last year:
- Total sales: ¥59.2 billion (down 15.2% from last year)
- Net profit: ¥4.8 billion (down 54.8%)
Square Enix has not adjusted its full year predictions yet, but the report is pretty clear. FFXIV’s performance will be extremely important in the months to come. With the Dawntrail expansion not doing well at all, the challenge will be keeping players engaged and bringing back those who left.
And that is not an easy thing to do, given how the game has been performing lately. But hopefully, Square Enix can improve it in the upcoming patches, and make players come back.
