Square Enix's third-largest investor, 3D Investment Partners, says the firm has seen a “significant decline in profitability” and calls on it to “develop and rigorously implement specific countermeasures that address critical management issues.”
IN press statementThe company, which owns 14% of the company, suggested that “under the new management structure,” Square Enix's last three years of operations have been marked by “marked stagnation in both revenue growth and profitability, with significant deterioration in profitability, as evidenced by declines in operating profit, return on equity and other key performance indicators.”
“We respectfully call for a fundamental re-evaluation of the medium-term management plan to fully realize the potential of Square Enix's outstanding intellectual property and thereby maximize corporate value,” the investors added.
The investment firm also donated Square Enix Document over 100 pages outlining perceived failures and declining performance, comparing Square Enix to other Japanese developers such as Nintendo, Capcom, Konami and Bandai Namco. He also encouraged other investors to share their views on “governance issues” at Square Enix.
“Since July 2024, we have been in constant dialogue with SQEX HD. In October 2025, we explained to President Kiryu and External Director Abdullah the management of SQEX HD from a market perspective. We also presented our proposals to President Kiryu,” 3D Investment Partners said.
“However, in response to this request, President Kiryu responded only with a brief email that stated without addressing any specific management issues or solutions we raised or providing any specific explanation for his reasoning.”
3D Investment Partners then asked other shareholders to share their “candid views” on the alleged governance issues “with all shareholders.”
Last month Square Enix Reveals Plans for 'Fundamental Restructuring'taking resources away from overseas development studios and putting more than 100 jobs at risk.
