Square Enix’s performance recovers after shutting down a large number of mobile games, the claim spreads, but the earnings show that “mobile games are doing well too, aren’t they?”

For SQUARE ENIX HOLDINGS’ full-year results for the fiscal year ending March 2026, revenue declined 8.3% year on year to ¥297.6 billion, while operating profit rose significantly to ¥54.7 billion and ordinary profit to ¥64.4 billion. Net profit attributable to owners of the parent was ¥29.6 billion, up 21.3% year on year. These figures suggest that the main driver of profit growth was the HD Games segment, where new releases sold well, rather than the discontinuation of mobile games itself.

Operating profit in the HD Games segment rose significantly to ¥14.1 billion from ¥3.3 billion in the previous fiscal year, an increase of 327%. The increase was attributed to solid sales of new titles, as well as sales of older titles that exceeded the previous year’s level. The same trend continued in the most recent quarter, with the operating margin in the first quarter of the fiscal year ending March 2027 rising to nearly 22%. This shows that the view that the discontinuation of mobile games was the decisive factor in the recovery was an oversimplification.

Revenue from the mobile game business for smart devices and PC browsers fell 27.2% year on year to ¥55.2 billion, but operating profit increased 64.7% to ¥14.0 billion. The improvement in profitability was attributed to the diversification of payment methods and optimization of operating costs, rather than solely to the reduction in the number of titles. The results materials also listed new releases such as Dissidia Duell Final Fantasy and Dragon Quest Smash & Grow, indicating that withdrawals and replacements were proceeding in parallel.

Debate also intensified on X over the relationship between paying and non-paying users, and discussion of mobile game spending spread alongside the results. Some posts argued that paying users are essential to keeping services running, while others said the influence of non-paying users should not be overstated. Overall, the results and segment trends indicate that the impact of mobile game discontinuations was limited, while new releases and improved profitability contributed to the overall recovery in performance.