Square Enix Investors Push for Reform
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News/Square Enix Investors Push for Reform
Square Enix Investors Push for Reform
Square Enix’s third-largest investor, 3D Investment Partners, says the company’s business strength has dropped in a serious way. The firm holds about 14 percent of the company and released a statement saying Square Enix has shown a significant deterioration in earning power. It also urged the publisher to devise and rigorously implement concrete countermeasures addressing critical management issues.
The investor group said that under the newly established management structure, the past three years have shown pronounced stagnation in both revenue growth and profitability. According to the group, this includes a significant deterioration in earning power, shown by declines in operating income, return on equity, and other key metrics.
The firm added that it respectfully urges a fundamental reassessment of the medium-term management plan. It said this should focus on fully unlocking the potential of Square Enix’s well-known game series and raising the company’s value.
3D Investment Partners shared a document more than one hundred pages long that describes what it sees as mistakes and weak performance across the company. The document compares Square Enix with other major Japanese developers such as Nintendo, Capcom, Konami, and Bandai Namco. The investor group also asked other shareholders to give their opinions on what it calls management issues at Square Enix.
The investor group said it has been talking with the company since July 2024. In October 2025, it met with President Kiryu and Outside Director Abdullah to explain the management issues of SQEX HD as seen from the market. It said it also presented several proposals directly to President Kiryu.
More:Bandai Namco to Lose Katsuhiro Harada
Square Enix Investors Push for Reform
Square Enix’s third-largest investor, 3D Investment Partners, says the company’s business strength has dropped in a serious way. The firm holds about 14 percent of the company and released a statement saying Square Enix has shown a significant deterioration in earning power. It also urged the publisher to devise and rigorously implement concrete countermeasures addressing critical management issues.
The investor group said that under the newly established management structure, the past three years have shown pronounced stagnation in both revenue growth and profitability. According to the group, this includes a significant deterioration in earning power, shown by declines in operating income, return on equity, and other key metrics.
The firm added that it respectfully urges a fundamental reassessment of the medium-term management plan. It said this should focus on fully unlocking the potential of Square Enix’s well-known game series and raising the company’s value.
3D Investment Partners shared a document more than one hundred pages long that describes what it sees as mistakes and weak performance across the company. The document compares Square Enix with other major Japanese developers such as Nintendo, Capcom, Konami, and Bandai Namco. The investor group also asked other shareholders to give their opinions on what it calls management issues at Square Enix.
The investor group said it has been talking with the company since July 2024. In October 2025, it met with President Kiryu and Outside Director Abdullah to explain the management issues of SQEX HD as seen from the market. It said it also presented several proposals directly to President Kiryu.
More:Bandai Namco to Lose Katsuhiro Harada
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