Developer attributes drop in net sales to lack of revenue from new titles, but recorded a 39% rise in operating income thanks to catalog games

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Square Enix reported a 13.3% decline in net sales to $1.3 billion for the nine months ending December 2025, attributed to lack of new title releases. Despite lower revenue, operating income rose 39% to $295.7 million driven by strong catalog game sales. The Digital Entertainment segment saw similar trends with 23.7% lower sales but 28.3% higher operating income. The company revised its full-year profit forecast upward to $351 million from $261.7 million due to improved profitability and higher-than-expected royalty income.

Square Enix revenues continue to decline over past nine months to $1.3bn