3D Investment Partners Criticizes Square Enix Management Strategy

3D Investment Partners, holding a 14.36% stake it amassed beginning in April, has published a 100-page document criticizing Square Enix's middling sales and management, urging a 'fundamental reassessment' of its medium-term plan. The activist cites declining margins, overreliance on the domestic Japanese market, platform-exclusivity losses, weak cross-media synergies and underperforming arcade and publishing units, and highlights recent restructuring, layoffs and plans to use generative AI for 70% of QA by 2027.