This might be bad news for FF7 Remake Part 3…
Chapters5
Revenue is down year over year while operating profits rise, suggesting cost cuts and a shift away from big budget releases. The segment shows diversification paying off in merchandising and other areas.
Square Enix's finances show mixed signals: profits up from cost-cutting and diversification, but core game and MMO revenue slipping, fueling questions about FF7 Remake Part 3's timing.
Summary
Maximilian Dood analyzes Square Enix’s latest financials to gauge the health of its IP and where Final Fantasy 7 Remake Part 3 fits. He notes operating profits rising while year-over-year digital and game sales dip, suggesting a shift away from purely blockbuster releases toward a diversified revenue strategy that includes merchandising, publications, and amusement. The Magic: The Gathering collab is highlighted as a successful money-maker, while MMO numbers continue to suffer. He highlights how Square Enix is pruning nonprofitable segments and pursuing a mid- to long-term pipeline aimed at higher-quality releases rather than sheer quantity. The video pivots to implications for FF7 Remake Part 3, arguing that the fiscal year alignment and revenue forecasts imply the title may not land in the first quarter of 2027. He compares this to Capcom’s ecosystem approach and questions about when and how an official announcement might land, given the need to hit planned profit windows. Throughout, Maximilian wrestles with the psychology of fan expectations versus corporate timing, ending with a cautious, “I’m ready to see something,” while acknowledging the likelihood of a later release window.
Key Takeaways
- Square Enix’s operating profit is up while overall game and digital sales are down year-over-year, indicating non-game revenue diversification matters.
- Merchandising and amusement segments are growing, showing Square Enix’s strategy to monetize IP beyond core games.
- The Square Enix report highlights a strong, profitable collaboration with Magic: The Gathering as a money-printing success.
- Forecasts point to a shift from quantity to quality in development, with major titles planned on key IP across multiple platforms in the mid-to-long term.
- FF7 Remake Part 3’s release timing appears unlikely in Q1 2027, based on revenue forecasts and the company’s three-year plan, suggesting either a later 2027 window or a different strategic rollout.
- FF7 Remake Part 3 might be announced closer to a major event if at all, but timing remains uncertain given fiscal year alignment and profit targets.
- Fans should temper expectations about an immediate Part 3 reveal and watch for strategic IP-driven releases rather than a fast follow-up.]
Who Is This For?
Essential viewing for fans hoping for FF7 Remake Part 3 and investors tracking Square Enix’s strategic shifts; it spells out how corporate timing and IP diversification can impact game announcements and release windows.
Notable Quotes
"Operating profits up, which means they're letting go of nonprofitable stuff and also presumably cutting costs."
—Maximilian highlights that profits are up despite weaker game sales, pointing to trimming and efficiency actions.
"Merchandising is up a lot. Publication is about the same. Amusement's up by a little bit."
—Shows where growth is concentrated outside core games, underscoring the diversification strategy.
"The weirdest thing is that across amusement and you know, all these things in here, merchandising, publication, there's just a lot more stuff that Square Enix has going behind the scenes."
—Emphasizes behind-the-scenes diversification beyond game development.
"Everold is the main event for fiscal year 27, pushing potential part 3 to April and beyond."
—Directly ties the product slate to financial planning and potential release pacing.
"Games don't come out when they're ready. They come out when they're supposed to most of the time."
—Summarizes the industry reality applying to FF7 Remake Part 3 timing.
Questions This Video Answers
- When could Final Fantasy 7 Remake Part 3 realistically release based on Square Enix earnings?
- Is FF7 Remake Part 3 likely to be delayed beyond 2027 due to financial planning?
- How does Square Enix's diversification into merchandising affect FF7 Remake Part 3 release strategy?
- Could FF7 Remake Part 3 be announced at a major event like Game Awards or Summer Games Fest?
- What does the Capcom-like IP ecosystem mean for Final Fantasy 7 Remake Part 3’s development and timing?
Square Enix financialsFF7 Remake Part 3 timingIP diversificationMagic: The Gathering collaborationCapcom ecosystem strategyMMOs revenue declineSurvival of older FF titlesSwitch 2 ports speculation
Full Transcript
Let's go. All right, let's start scrolling through. So, a couple of the things I'm seeing is that their overall uh revenue is down minus 16% year-over-year, but their operational profits are actually up. This means in terms of digital sales and overall like game sales and stuff like that, they're not doing as good as before just because there isn't any massive mega budgeted releases. You know what I mean? There's just not much happening right now. The weirdest thing is that across amusement and you know, all these things in here, merchandising, publication, there's just a lot more stuff that Square Enix has going behind the scenes.
Uh, apparently they're doing pretty good. Merchandising is up like by a lot. Publication is about the same. Amusement's up by a little bit. Square Enix is doing like the smart thing where they found a way to diversify themselves and allow them to make money outside of just making games. Magic the Gathering collab was pretty much just a a money print, right? It just printed money for them. That actually worked out very well in their favor. Here's the big things of note from what was in there. Operating profits up, which means they're letting go of nonprofitable stuff and also presumably cutting costs.
This is um from from Reddit when the reports just came out. merchandising segment is up a lot. Operating profit, gaming side, HD games uh drop is now stabilizing even with a slight increase and the operating profit is slightly up. MMO uh is minus 26% year-over-year and minus 31% operating profit. So 14's not doing great at the moment, but that's because they're on the cusp of a big update. PC browser dropped by a lot of revenue. That's weird. Most interesting part, if you look at profit generation, HD games and mobile games are pretty evenly split. Of course, 14 being one of the games that's driving most single-handed MMO profit generation is still impressive cuz they're still making them most of their money.
Uh 14 still managed to lose a role in the major cash cow in 2024 and 2025 most likely. And that's about it. The interesting part, and I'm trying to find out where their financial reports are, cuz this isn't the only news. Yeah, here's an interesting one. Screenix says their plan is to strengthen their IPs by creating more customer contact points. They will use all their divisions of games, book, music, merchandising, and amusement to maximize and expand their IPs such as Final Fantasy. And this is sort of similar to that like thing we saw with Capcom, which is like how one thing leads to another leads to another of how they have like a supporting ecosystem in some way.
This is interesting. They say that the sales of older games are the best that they've been in 3 years. Successful promotional initiatives and multiplatform releases. I think that was also probably a contributing factor of that is FF7 showing up probably on Switch 2. That starts to make sense. Tactics also coming back in some way. I wonder if they consider that an old game. Final Fantasy Tactics like what's considered what constitutes as old probably Switch 2 ports. There was a number that was breaking down what their forecast is for next year, which is going which is possibly very telling of what we can expect because they can't lie on this [ __ ] This was one part of the report.
Check this out. Enhance productivity by optimizing the development footprint in the digital entertainment segment. Establish mid to long-term pipeline to achieve a shift from quantity to quality. And after the current three-year midterm business plan, aim to release major titles mainly in key IP steadily. Okay. The thing that has effectively made Square suffer the most and diminished Final Fantasy as an IP, which is just true, is the fact that youngans get one game in their entire childhood or even teenagehood. You know, the ability for people to stay interested is just not possible. Three years of rebooting 26 to 27 and after fiscal year 28, this talking about Switch to integrate plans to release major titles.
Plans to release multiple titles on multiple platforms and plans to release major titles on a consistent basis. Gotcha. So, the consistent basis is not going to be happening until like fiscal year 28, which does make sense, right? They need time to get started on this [ __ ] They need time to work on Final Fantasy 67. Square is forecasting uh 298 billion in revenue for fiscal year 27. A slight increase compared to 26. And there wasn't that many games this year. It seems like Everold is the main event for fiscal year 27, pushing potential part 3 to April and beyond, which is a pretty good assessment.
Financial [ __ ] doesn't lie. So, here's the crazy part. It is what it is. Uh, at this point, there's been the presumption that for many of us, like, hey, it'd be really cool if part 3 dropped in a similar time frame as all of the other games, you know, that would still be putting it with a three-year development cycle and all that [ __ ] But this is legit true. Uh, fiscal year of 2026 ends in like March 31st. So, the bigger question we got right now is, hey, when the hell is part 3 potentially coming out? Is it going to make quarter 1 next year?
Granted, this game has not even been announced yet, but also the prediction of this year to next year being comparable is like, uhoh, that means that [ __ ] ain't coming out. At least in my eyes, Final Fantasy 14 is going to be the bane the the big thing that will cement itself. This is also kind of interesting. Square's forecasting yen for revenue in 27, fiscal year 27. So that's April 1st, 2027. a slight increase compared to 26. Could be wrong, but it seems like Everold would be the main event for 27. No. Well, maybe, but Everold comes out in like January.
I think the majority of sales they would get from that, if not operating revenue, probably is going to come from fiscal year 26. They're still reporting a similar amount of like profit revenue uh or revenue just in general for the following year past April, which likely means if part 3 is coming out next year, it ain't coming out before March. That is a high likelihood. You got to understand games don't come out when they're ready. Chat games come out with very specific timing so that they can hit like profit margins and stuff like that. Like these are companies.
Games don't come out when they're done. They come out when they're supposed to most of the time. So that being said, this does paint a picture that maybe, just maybe, FF7 remake part 3 does not make the presumed first quarter of 2027. There's a good chance I think we have to start asking some some more bold questions. Does that mean this gets announced in a month? Because most of us are like, "Hey, this shit's getting announced in a month, right? It's happening. They're talking about it, but they're also they've also talked about it a lot before previous events as well.
They've also talked a lot about it before some before the Game Awards last year. If Summer Gamesfest or potentially a State of Play happens, if the game is not coming out within that eightmonth window, and again just throwing it out, they probably don't want to announce something like a year before it comes out. They probably don't. So, if it misses that 8-month window, then when is a more apt place to make an announcement for it? Maybe the Game Awards this year. So, that's the crazy thing. My my assumption now is that whatever we thought to be true, it's not aquel.
It's not a sequel. You know, is it going to lead to Dura Cerberus? Is it going to come out this year? [ __ ] we know nothing. That's crazy. Now that this financial report has come out, we almost felt like, oh, dude, we might we could see, you know, we can see the light in the distance through the forest. But at this point, I don't know, dude. I actually don't know. To me, it was like a 95% guarantee that this [ __ ] could get announced within a month. And now I don't know because if it's not coming out in that time frame, then that's a very long time to announce a game ahead of its release date, which is something that they've not really wanted to do for a while.
It would be crazy if you have to wait anymore cuz it feels like we've been waiting a lot. It feels like I'm kind of ready, you know? That's all I'm saying. I I all I all I have to say personally is that I feel like I'm kind of ready for this [ __ ] I want to I think I want to know something about it now other than just being told things that are kind of line up with what's in my head. That's what everybody's doing right now. They're being told things trying to create a picture in their head and then they say something and it comes back and it paints a completely different picture.
You know what I mean? Either way, this absolutely paints a picture that Final Fantasy 7 remake part 3 is not coming out in the same time frame we think it might uh as at least as the other games. It might actually drop similar to part one where part one is somewhere in April. I think that's the earliest possible time frame it could be. I'm down to wait, you know. It's just that I feel like I'm ready to see something. Square Enix is doing okay right now, but that game's got to come out soon. And I I hope we don't have to wait until like the latter half of 2027 to eventually see something on their ship.
This is funny. You have to say this. No mention of Kingdom Hearts at all in the Square Enix financial report. Jesus.
More from Maximilian Dood
Get daily recaps from
Maximilian Dood
AI-powered summaries delivered to your inbox. Save hours every week while staying fully informed.



