Final Fantasy, Dragon Quest lose earnings magic for Square Enix

Japan game company takes hit from development revamp as industry stumbles

Square Enix, the developer of the hugely popular Final Fantasy and Dragon Quest, has reported a 70% net profit decline for the fiscal year ended March as it shifts its game development strategy. (Photo by Takaki Kasiwabara)

TAKURO SUZUKI and KANOKO SAKAMOTO, Nikkei staff writers

May 14, 2024 06:46 JST

TOKYO -- Square Enix Holdings saw net profit tumble 70% to 14.9 billion yen ($95.4 million) in the fiscal year ended March as Japan's video game industry grapples with ebbing pandemic-era demand and mounting development costs.

In earnings released Monday, the developer of the hugely popular Final Fantasy and Dragon Quest franchises booked 38.8 billion yen in write-downs and extraordinary losses related to a revision of its game development pipeline.