Square Enix revealed that digital game sales during its previous financial quarter outnumbered physical game sales by a considerable margin across the globe. Square Enix remains one of the gaming industry’s most recognizable AAA studios based out of Japan, led by its tent pole JRPG franchises Final Fantasy, Kingdom Hearts, and Dragon Quest.
During Summer Game Fest 2026, Square Enix pulled back the curtain on Final Fantasy 7 Revelation, the climactic finale of the Final Fantasy 7 Remake saga. Additionally, Square Enix confirmed during the June Nintendo Direct broadcast that Kingdom Hearts 4 was also in development for all current-gen platforms, including the Switch 2. More information about the future of the Kingdom Hearts franchise is expected to be revealed during an August 15 panel at Disney’s D23 expo.
Square Enix Digital Game Sales Vastly Outnumber Physical Copies Sold
Although Square Enix still sells physical game copies around the world, digital game sales have remained dominant within the last few months. According to Square Enix’s Q1 2027 financial results (spanning April 1 to June 30, 2026), the company sold 7.38 million units within the first quarter of its current fiscal year, which is a year-on-year increase from the 4.01 million units sold in Q1 2026. However, Square Enix revealed that 6.65 million of the aforementioned units sold were digital, compared to 0.73 million physical units, meaning that around 90% of its quarterly game sales were via digital storefronts compared to the 10% margin managed by physical games. Square Enix previously stated that the company considers the Switch 2’s Game-Key Card format as a digital game within its reports, which includes the Switch 2 ports of Final Fantasy 7 Remake and Rebirth. Final Fantasy 7 Rebirth launched on Switch 2 and Xbox Series X/S in early June.
Guess the games from the emojis.
Guess the games from the emojis.
Easy (120s)Medium (90s)Hard (60s)
The gap between physical and digital sales was also affected by a surge in MMO division sales as player counts increased following the reveal of Final Fantasy 14: Evercold. Although Final Fantasy 14‘s sixth expansion will not be released until January 2027, Evercold has caused net sales of Square Enix’s MMO division to increase year-on-year from 9.6 billion yen to 12.7 billion yen. However, operating income only slightly increased by 0.03 billion yen year-on-year due to the upfront costs associated with Evercold‘s continuing development. Evercold will feature two new Jobs and two crossover raids, respectively, with the Final Fantasy 7 Remake series and with Evangelion.
Square Enix’s quarterly net sales and operating income for its HD games lineup also increased year-on-year. Net sales went up from 8.9 billion yen to 17.7 billion, while operating income went from 5.1 billion yen to 6.1 billion. Square Enix attributed the stronger year-on-year sales to recently released games such as The Adventures of Elliot: The Millennium Tales, along with pre-orders of upcoming titles like Kingdom Hearts Collection [1~3] and Final Fantasy Resonance.
The information came amid a busy time for Square Enix, as the company will share another look at Final Fantasy 7 Revelation at Gamescom in Cologne, Germany, later in August. Whether Square Enix can keep up the financial momentum remains to be seen.
