Final Fantasy's Square Enix Investors Call for Major Reassessment

The pressure is mounting on the leadership behind Final Fantasy and Dragon Quest. A key investor has publicly demanded a massive strategic overhaul at Square Enix, citing deep concerns over the publisher's dwindling ability to compete. 3D Investment Partners, a Singapore-based fund that stands as the publisher's third-largest investor with a significant 14% stake, issued a sharp rebuke of the company this week. In a scathing statement, the firm urged the developer to "devise and rigorously implement concrete countermeasures addressing critical management issues," pointing to a worrying decline in the company's modern market standing.

The call for action centres on a massive 100-page report released by the investment firm, which accuses Square Enix of presiding over a "significant deterioration in earning power". The investor argues that under the newly established management structure, the last three years have been defined by "pronounced stagnation in both revenue growth and profitability." 

The report specifically targets the company's struggling HD game division, slamming it for fragmented development processes, poor choices regarding gaming platforms, and bloated costs from cancelled projects. These inefficiencies have resulted in massive financial write-offs, including HD impairments that have totalled a staggering $140 million USD in losses.

 "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.

Stalled Dialogue and Competitive Decline

According to 3D Investment Partners, the friction has been building for quite some time. The firm revealed that it has been attempting to engage in dialogue with Square Enix’s board since July 2024. They claim that when they presented their proposals to President Kiryu and Outside Director Abdullah in October 2025, the dialogue hit a wall. 

The only response received was a vague email that failed to address specific solutions or explain the company's current trajectory. Consequently, the investor is now rallying other shareholders to share "frank views" on the management issues and scrutinize the company's "Reboots" mid-term plan for 2025-2027. 

They argue this current roadmap lacks real Key Performance Indicators (KPIs), targets, or a clear vision to unlock the potential of IP across games, films, anime, and merchandise.

The investor’s report highlights unfavourable comparisons to domestic rivals like Nintendo, Capcom, Konami, and Bandai Namco, suggesting Square Enix has lost its edge due to weak cross-media synergy and deeper troubles in both console and mobile gaming. 

The situation is already impacting the workforce, as just last month, Square Enix announced a "fundamental restructuring" that involves shifting resources away from overseas studios, a move that has put over 100 jobs at risk. 

While the publisher has not yet commented publicly on this latest wave of activist pressure, the demand for open dialogue could force genuine changes at the top as the gaming giant fights to regain its footing.