Nearly nine out of every ten HD and MMO game units sold by Square Enix now come through digital downloads. That is one of the most revealing details from a strong first half of fiscal 2027, and the Japanese publisher has also raised its annual earnings forecast. However, the more interesting story is how established games and wider platform availability are contributing to that improvement.
During the six months ended September 30, 2026, the company sold 14.87 million HD and MMO game units, compared with 9.93 million a year earlier. Meanwhile, operating income grew considerably faster than overall revenue. Together, these figures offer a useful picture of a business becoming more profitable while selling more games.
Square Enix now sells almost nine in ten game units digitally
Digital downloads accounted for 13.35 million HD and MMO units during the half-year period, up from 8.55 million in the comparable period. Physical copies also increased, although much more modestly, from 1.38 million to 1.52 million. As a result, digital purchases represented approximately 89.8% of total HD and MMO unit sales.
The regional figures make this shift particularly interesting. In North America and Europe, digital units climbed from 5.83 million to 8.19 million, while physical copies slipped from 1.09 million to 1.01 million. Japan recorded 2.88 million total units, up from 1.75 million, while Asia and other regions reached 2.79 million, compared with 1.25 million previously.
These percentages describe game units rather than digital revenue. Even so, the figures show just how central downloadable games have become to the publisher’s console and PC business.
Square Enix reports stronger profits across its gaming business
According to the official financial results published on November 11, 2026, revenue and earnings increased substantially during the six months from April 1 through September 30. The reporting period belongs to the fiscal year ending March 31, 2027.
The main consolidated figures were as follows. All monetary amounts are in millions of yen.
- Net sales: ¥163,179 million, up 21.9% year over year.
- Operating income: ¥38,793 million, up 42.2%.
- Ordinary income: ¥40,336 million, up 41.3%.
- Profit attributable to owners of the parent: ¥28,566 million, up 184.2%.
- Digital Entertainment sales: ¥97,681 million, up 33.7%.
- Amusement sales: ¥39,147 million, up 13.2%.
- Publication sales: ¥15,844 million, up 9.9%.
- Merchandising sales: ¥11,489 million, down 9.6%.
That 184.2% increase in net profit deserves some context. During the previous year’s first half, the company recorded ¥9,849 million in extraordinary losses associated with reorganization costs.
Older games and multiplatform releases are delivering stronger returns
One particularly important figure is the performance of catalog games. These titles generated 12.59 million unit sales during the half, compared with 8.48 million a year earlier. In other words, previously released games remain a major source of sales, demonstrating the commercial importance of maintaining a strong back catalog.
Square Enix also credited new releases, including FINAL FANTASY VII REBIRTH on Nintendo Switch 2, Xbox Series X|S and Windows, alongside The Adventures of Elliot: The Millennium Tales. Meanwhile, FINAL FANTASY XIV benefited from improved player activity following the announcement of its latest expansion. On mobile, DISSIDIA DUELLUM FINAL FANTASY and DRAGON QUEST Smash/Grow contributed to growth.
This fits the direction of the three-year strategy known as “Square Enix Reboots and Awakens.” HD game operating income increased from approximately ¥5.0 billion to ¥13.0 billion, with the operating margin improving from around 21% to 37%. Wider multiplatform distribution and catalog performance were central to that improvement.
For players, this strategy places greater importance on how games perform beyond their initial launch. Continued availability, additional platforms and long-term support can help established titles remain relevant. Even smaller updates matter to that experience, as illustrated by the recently resolved NieR:Automata storage bug on Steam.
The higher annual forecast puts the upcoming RPG lineup in focus
Following the first-half performance, Square Enix increased its full-year net sales forecast from ¥298,000 million to ¥310,000 million. Expected operating income rose from ¥49,000 million to ¥59,000 million, while ordinary income received the same upward revision. Forecast net profit also increased, from ¥31,000 million to ¥37,000 million. The planned dividend remains unchanged at ¥43 per share.
Looking ahead, the company’s plan includes several major RPG releases. The following titles and release windows are listed in its upcoming lineup.
- DRAGON QUEST MONSTERS: The Withered World — December 2026.
- Romancing SaGa 3: Destinies United — February 2027.
- FINAL FANTASY XIV: Evercold — February 2027.
- FINAL FANTASY VII REVELATION — April 2027.
- DRAGON QUEST XII: Beyond Dreams — Release date not announced.
FINAL FANTASY VII REVELATION is especially noteworthy as the concluding chapter of the remake trilogy. Beyond its place in the release calendar, the project also carries considerable creative expectations. Director Naoki Hamaguchi has already discussed the trilogy’s structure and his reflections on Midgar, offering additional context for what makes its conclusion significant.
The forecast is a target for the fiscal year ending in March 2027, not a guaranteed result, and FINAL FANTASY VII REVELATION is scheduled to arrive after that fiscal year ends.
Ultimately, Square Enix is showing that a successful game does not need to depend entirely on its launch window. With downloads approaching 90% of HD and MMO units, catalog sales rising and multiplatform releases supporting profitability, the publisher enters the second half with stronger momentum. The next question is whether it can sustain that performance as its RPG lineup continues to expand.
Creator of the website, Pokemon trainer by nature. Trying to report on everything related to the world of video games, series and movies. Yu-Gi-Oh is my weakness, collecting cards since the dawn of time.
