Dragon Quest III HD-2D Remake Drives Square Enix Financials on Nintendo Switch Amid Mobile Game Decline

Square Enix has published its latest financial report for the nine months ending December 31, 2024, a period corresponding to fiscal year 2025.

The report reveals a nuanced performance across the company’s diverse portfolio, with standout success for the recently released Dragon Quest III HD-2D Remake—particularly noteworthy for fans and investors focused on Nintendo Switch and digital entertainment. According to the financial statement, Square Enix experienced a year-on-year drop in both net sales and operating income.

Net sales for the period reached ¥248.5 billion, reflecting a decrease of 3.5%, while operating income was ¥33.3 billion, down 4.4%.

Ordinary income and profit attributable to owners of the parent also declined by 7.7%, coming in at ¥37.7 billion and ¥24.7 billion respectively.

Despite these broader challenges, the publisher's Digital Entertainment division—home to high-profile console and PC titles—delivered a bright spot that partially offset weaker areas of the business. The company attributed this resilience primarily to stronger-than-expected sales of Dragon Quest III HD-2D Remake, which leverages a visually striking retro-inspired art style and is available on platforms including the Nintendo Switch.

Square Enix officially reported that by December 2024, global shipments and digital downloads for Dragon Quest III HD-2D Remake had surpassed 2 million units, underscoring the franchise’s enduring appeal.

In the financial update, Square Enix stated that operating income in its digital entertainment sector saw a modest increase, directly linked to the blockbuster performance of Dragon Quest III HD-2D Remake, which exceeded initial sales expectations. Further bolstering the segment, the company acknowledged the contribution of Dawntrail, the latest expansion for the critically acclaimed MMO Final Fantasy XIV.

The launch of Dawntrail generated additional revenue streams, demonstrating Square Enix's strength in the persistent online RPG market. However, not all arms of Square Enix's portfolio fared as well.

The report called out significant underperformance in the mobile and PC browser games segment—a sector that includes titles like Final Fantasy VII: Ever Crisis, Emberstoria, and Octopath Traveler: Champions of the Continent.

Square Enix's financials confirm that revenue from these games declined sharply, with net sales in the category dropping from ¥78.0 billion to ¥56.3 billion.

The downturn in mobile and browser gaming illustrates broader industry trends and signals a shift in consumer engagement back toward established franchises and premium console titles, particularly on platforms like Nintendo Switch. Square Enix's ability to drive substantial sales of Dragon Quest III HD-2D Remake on Switch and other platforms provides a stabilizing influence as the company navigates challenging conditions in its mobile division.

The success of both this remake and online expansions points to continued demand for premium content from legacy series—an encouraging sign as Square Enix charts its future lineup for the Nintendo Switch, eShop, and global gaming audiences.

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