3D Investment Partners, a Singapore-based activist investment fund holding a 14.36% stake in Square Enix, published a 100-page presentation on December 8, 2025, sharply criticizing the company’s management and business strategy. The presentation, distributed through BusinessWire, calls on other shareholders to join 3D Investment in sharing frank opinions about Square Enix’s ongoing issues and pursuing constructive dialogue with company leadership to enhance corporate value.
The aggressive move follows Square Enix CEO Takashi Kiryu’s allegedly inadequate response to concerns 3D Investment raised privately in October 2025. According to the activist investor, they approached Kiryu with detailed analysis of problems and improvement proposals but received only a brief email insisting the current plan was adequate. Frustrated by the dismissive response, 3D Investment went public with their criticisms, employing a common tactic among activist investors to pressure management by rallying shareholder support for their initiatives.
Who Is 3D Investment Partners
3D Investment Partners is described as an infamously aggressive activist investment fund based in Singapore. Activist investors acquire significant stakes in companies they believe are underperforming or mismanaged, then aggressively push for changes ranging from strategic pivots to leadership replacement to asset sales. Unlike passive investors who simply collect dividends, activists actively intervene in corporate governance to maximize shareholder returns.
The firm’s 14.36% stake in Square Enix represents substantial ownership, more than one-eighth of the total company. This distinguishes 3D Investment from less reputable activists who purchase minimal shares just to make noise at shareholder meetings. Investing such a substantial amount carries weight when suggesting improvements, as the firm has genuine financial incentive to see Square Enix succeed rather than simply seeking attention.
Previous Activist Campaigns
According to industry analyst Serkan Toto, 3D Investment Partners has no experience in the gaming industry whatsoever, making meaningful proposals to improve Square Enix’s business questionable. However, activist investors typically hire industry consultants and experts to inform their strategies. The 100-page presentation’s detailed analysis suggests 3D Investment conducted extensive research or retained gaming industry advisors to develop their criticisms and recommendations.
The firm’s approach mirrors tactics used in previous activist campaigns across various industries. A case study involving Fujisoft demonstrates 3D Investment’s willingness to engage in prolonged public battles with management when private negotiations fail. The Square Enix campaign appears to be following this playbook, starting with private overtures before escalating to public pressure through shareholder mobilization.
Key Criticisms in the Presentation
The 100-page document centers on two primary themes according to former Square Enix executive and Genvid CEO Jacob Navok: sales are bad and development costs are high. The presentation blames Square Enix’s struggles on underperformance in both console and mobile game sectors, exceptionally large write-downs related to cancelled games, and lackluster performance from arcade and publishing divisions that 3D Investment considers non-synergistic businesses pulling down overall company value.
Specific financial data cited includes sluggish revenue growth and declining profits despite Square Enix’s portfolio of beloved franchises like Final Fantasy, Dragon Quest, and Kingdom Hearts. The presentation argues that a company with such valuable intellectual property should perform significantly better, suggesting mismanagement rather than industry-wide challenges explains the disappointing results.
Write-Downs and Cancelled Projects
3D Investment highlighted exceptionally large write-downs related to cancelled games as a major problem. Square Enix has indeed taken substantial losses on projects that never reached market, including the reported cancellation of multiple unannounced titles. These write-downs represent sunk costs that damage profitability without generating any revenue, raising questions about project greenlight processes and early-stage quality control that allows doomed games to consume resources before inevitable cancellation.
The presentation likely points to specific examples where Square Enix invested heavily in games that were scrapped, though exact titles weren’t disclosed in available summaries. Industry observers have speculated about various Square Enix projects announced years ago without updates, suggesting development hell scenarios where teams work for years on games that never ship, burning through budgets with nothing to show investors.
Criticisms of the Mid-Term Strategy
Square Enix recently announced a Reboot mid-term strategy covering fiscal years 2025 through 2027 intended to turn the company around. However, 3D Investment considers this plan insufficient and too vague. The presentation cites several specific deficiencies including lack of a concrete vision for long-term recovery beyond generic improvement language, low-balled improvement margins that don’t address the severity of problems, and absence of concrete execution plans or key performance indicators for measures meant to address acknowledged issues.
The criticism essentially argues that Square Enix’s management recognizes problems exist but offers no credible roadmap for fixing them. Corporate strategies filled with buzzwords like reboot or transformation without specific metrics, timelines, accountability structures, and resource allocations amount to wishful thinking rather than actionable plans. 3D Investment wants to see detailed blueprints for how exactly Square Enix will improve, not just aspirational statements about wanting to do better.
Recent Layoffs and Restructuring
In November 2025, Square Enix confirmed layoffs and restructuring in North American and European publishing operations. The company is expecting restructuring expenses of 11.8 billion yen (about 76.8 million US dollars) in the fiscal year ending March 2026. As a result of the restructuring, Square Enix expects cost savings of over 3 billion yen (about 19.5 million US dollars) annually.
The company stated they are undertaking these initiatives to further strengthen global publishing capabilities and improve operational efficiency. However, from 3D Investment’s perspective, these measures likely represent insufficient half-steps rather than the fundamental reassessment they demand. Cutting some staff and closing offices addresses symptoms rather than underlying strategic problems in how Square Enix develops, markets, and monetizes games.
Non-Synergistic Businesses
3D Investment specifically called out Square Enix’s arcade and publishing sectors as non-synergistic businesses that don’t align with core competencies or generate acceptable returns. This criticism suggests the activist investor wants Square Enix to focus exclusively on developing and publishing its own video games rather than maintaining tangential operations that distract from core business.
Divesting arcade operations and third-party publishing would align with strategies other gaming companies pursued when refocusing on core strengths. However, it also means abandoning revenue streams and potentially valuable relationships with external developers. The debate over portfolio focus versus diversification represents a fundamental strategic question where reasonable people disagree about optimal approaches.
What 3D Investment Wants
While the full 100-page presentation wasn’t publicly released in its entirety, the core demands appear to be a fundamental reassessment of Square Enix’s business strategy, specific and measurable plans for improving profitability rather than vague aspirations, potential divestment of underperforming or non-core operations, better project management to reduce write-downs from cancelled games, and possibly leadership changes if current management doesn’t demonstrate capacity for necessary transformation.
The activist investor’s ultimate goal is enhancing corporate value, which typically means increasing stock price and shareholder returns. Whether 3D Investment plans to hold its stake long-term or eventually sell for profit once improvements lift valuation isn’t clear, but all activist campaigns center on making companies more valuable through operational improvements, strategic shifts, or forcing acquisitions at premium prices.
Square Enix’s Position
Square Enix has not issued a detailed public response to 3D Investment’s 100-page presentation as of December 9, 2025. IGN reached out for comment but no official statement has been released. The company’s October 2025 brief email to 3D Investment insisting the current plan was adequate suggests management believes their strategy is sound and activist investor concerns are overblown or based on misunderstanding the gaming industry’s unique challenges.
From Square Enix’s perspective, developing blockbuster games requires long development cycles, substantial investment, and inherent risk that some projects won’t succeed. The company might argue that 3D Investment’s criticism reflects unrealistic expectations about how quickly major games can be produced and sold, or underestimates industry-wide challenges including rising development costs, platform transitions, and changing player preferences.
Industry and Community Reactions
Reddit discussions about the 100-page presentation show mixed reactions. Some commenters agree with 3D Investment’s criticisms, noting that Square Enix has indeed underperformed given its valuable IP portfolio. Comments like I foresee a scenario where Square may either cease to exist as an independent entity or become fully acquired by another company reflect genuine concern about the company’s trajectory and belief that change is necessary, particularly from leadership.
Others express skepticism about activist investors meddling in creative industries. Gaming requires long-term vision and willingness to take risks that don’t always pan out, qualities that conflict with activist demands for immediate profitability improvements and quarterly results. Concerns exist that pressure from investors focused solely on financial metrics could push Square Enix toward safer, less innovative games that maximize short-term returns at the expense of creative ambition.
Possible Outcomes
Several scenarios could emerge from 3D Investment’s campaign. Square Enix management might engage seriously with shareholder concerns and produce a more detailed strategic plan with specific metrics and execution timelines. The company could announce major divestitures, selling off non-core businesses to focus resources on game development. Leadership changes might occur if CEO Takashi Kiryu and other executives lose board or shareholder confidence.
Alternatively, Square Enix might resist activist pressure, arguing their current strategy is sound and that gaming industry expertise matters more than generic financial optimization. Other major shareholders could side with management rather than 3D Investment, particularly Japanese institutional investors who traditionally take longer-term views than Western activist funds. The situation could escalate into a proxy battle for board seats if 3D Investment decides to directly challenge current leadership.
The most dramatic possibility is that another company acquires Square Enix entirely. If the stock remains undervalued and management doesn’t improve performance, the company becomes an attractive takeover target for larger gaming or entertainment conglomerates who could unlock value through integration or better management. Sony, Tencent, or other major players might see opportunity to acquire beloved franchises at a relative discount.
FAQs
Who is 3D Investment Partners?
3D Investment Partners is a Singapore-based activist investment fund that owns 14.36% of Square Enix. The firm is described as infamously aggressive and has no previous experience in the gaming industry but has conducted extensive research for their Square Enix campaign.
What does the 100-page presentation criticize?
The presentation criticizes underperforming console and mobile games, large write-downs from cancelled projects, sluggish revenue and profit growth, and Square Enix’s vague mid-term strategy that lacks concrete vision, metrics, and execution plans.
What does 3D Investment want Square Enix to do?
The activist investor demands a fundamental reassessment of business strategy, specific measurable improvement plans, potential divestment of non-core operations like arcades and third-party publishing, and better project management to reduce cancelled game write-downs.
How much of Square Enix does 3D Investment own?
3D Investment Partners owns a 14.36% stake in Square Enix, representing more than one-eighth of total shares. This substantial ownership gives their criticisms significant weight compared to activists with minimal stakes.
Has Square Enix responded to the presentation?
Square Enix has not issued a detailed public response as of December 9, 2025. Previously in October 2025, CEO Takashi Kiryu reportedly sent only a brief email insisting the current plan was adequate, prompting 3D Investment to go public.
What is activist investing?
Activist investing involves acquiring significant stakes in companies believed to be underperforming, then aggressively pushing for changes like strategic pivots, leadership replacement, or asset sales to maximize shareholder returns and increase stock value.
Could Square Enix be acquired?
It’s possible. If Square Enix remains undervalued and performance doesn’t improve, the company becomes an attractive acquisition target for larger gaming or entertainment companies who could unlock value through better management or integration.
What games has Square Enix cancelled recently?
Specific titles weren’t disclosed, but 3D Investment highlighted exceptionally large write-downs related to cancelled games as a major problem. Multiple unannounced Square Enix projects have reportedly been scrapped after consuming significant development resources.
Conclusion
3D Investment Partners’ 100-page attack on Square Enix management represents a watershed moment for one of gaming’s most iconic companies. With 14.36% ownership, the activist investor wields genuine influence that Square Enix cannot simply dismiss, especially if other shareholders rally to the cause as 3D Investment hopes. The criticisms about underperforming games, massive write-downs from cancelled projects, and vague strategic plans without concrete execution details resonate with observers who have watched Square Enix struggle despite owning beloved franchises like Final Fantasy and Dragon Quest. However, activist investor intervention in creative industries always raises concerns about short-term financial thinking overriding long-term vision necessary for developing groundbreaking games. The tension between maximizing quarterly profits and taking creative risks that might not pay off for years represents a fundamental conflict between Wall Street logic and artistic ambition. How this plays out will likely determine Square Enix’s future as an independent company. Management could engage constructively, produce detailed improvement plans with measurable goals, and satisfy investor concerns while maintaining creative control. Or they could resist, argue gaming industry expertise matters more than generic financial optimization, and bet that performance will improve without fundamental strategic changes. The worst outcome would be prolonged conflict that distracts leadership, demoralizes employees, and ultimately forces a distressed sale to a larger company at unfavorable terms. For fans of Square Enix games, the hope is that whatever emerges from this shareholder battle results in better games delivered more consistently rather than franchises being gutted for short-term profit extraction before inevitable decline.