Square Enix’s third-largest investor, 3D Investment Partners, claims the firm has demonstrated a “significant deterioration in earning power,” and called for it to “devise and rigorously implement concrete countermeasures addressing critical management issues.”
In a press statement, the company – which holds a 14% stake in the company – suggested that “under the newly established management structure,” the past three years of Square Enix’s performance has been marked by a “pronounced stagnation in both revenue growth and profitability, with a significant deterioration in earning power, as evidenced by declines in operating income, return on equity, and other key performance metrics.”
“We respectfully urge a fundamental reassessment of the medium-term management plan, with the objective of fully unlocking the potential of Square Enix’s distinguished intellectual property and thereby maximizing corporate value,” the investors added.
The investment firm also presented Square Enix with a 100+ page document outlining perceived failures and declining performance, comparing Square Enix with that of other Japanese developers such as Nintendo, Capcom, Konami, and Bandai Namco. It also called for other investors to share their views on the “management issues” at Square Enix.
“Since July 2024, we have been engaged in ongoing dialogue with SQEX HD. In October 2025, we explained to President Kiryu and Outside Director Abdullah the management issues of SQEX HD as seen from the market. We also presented to President Kiryu our proposals,” 3D Investment Partners said.
“However, in response to this request, President Kiryu replied only with a brief email stating, without addressing any of the specific management issues or solutions we had raised, and without providing any concrete explanation of his reasoning.”
3D Investment Partners then asked other shareholders to share “frank views” on the perceived management issues “with all shareholders.”
Last month, Square Enix revealed plans to implement a “fundamental restructuring”, pulling resources away from “overseas” development studios and putting over 100 jobs at risk.
