Square Enix: digital sales growth and development of Kingdom Hearts 4
Intelligence Summary
- Square Enix reports strong digital sales growth and confirms Kingdom Hearts 4 is in development for current-gen consoles.
In short
- Square Enix sold 7.38 million games in Q1 2027, with 90% of sales coming from digital.
- Development of Kingdom Hearts 4 has been confirmed for all current-generation consoles, including the Switch 2.
- Digital sales figures rose sharply compared with the previous year, pointing to a market shift.
GAME-scanner analysis
Square Enix recently presented its financial results for the first quarter of fiscal year 2027, reporting a notable increase in digital sales. With 6.65 million of the 7.38 million units sold being digital, it is clear that gamers are increasingly preferring digital purchases. That marks a significant jump from the 4.01 million units sold in the same quarter last year. The move toward digital distribution reflects not only consumer preference, but also the broader shift in the games industry toward digital platforms.
Confirmation that Kingdom Hearts 4 is in development is another major highlight. The sequel to the beloved franchise will be available on all current-generation consoles, broadening its reach for a wide audience. The upcoming reveal at the D23 Expo on August 15, 2026 will no doubt spark plenty of speculation and excitement among fans.
What does this mean for players?
For players, the growth in digital sales means more options for buying games, often with discounts and special offers that may not be available in physical stores. Kingdom Hearts 4 gives fans of the series a chance to dive back into the magical world of Sora and his friends, with new story elements and gameplay mechanics that could expand the series even further.
Timeline
Q1 2027 (April 1 - June 30, 2026): Square Enix sells 7.38 million units, 90% of them digital.
August 15, 2026: Upcoming Kingdom Hearts 4 reveal at the D23 Expo.