Square Enix announced today updated earnings expectations for the first half of the fiscal year, covering April to September. Things look up for the company thanks in part to strong Dragon Quest V performance.

As originally announced on May 23, 2008, Square Enix was expecting total sales of 70,000 million yen, with operating income at 4,000 million yen. These have been changed to net sales of 68,000 million yen and operating income of 9,400 yen.

As reason for the increased forecasts, the company said it expects sales and income for offline games to increase both due to Dragon Quest V and to streamlining of costs. Online and mobile games will also exceed initial operating income expectations. The company also attributed the arcade card game Lord of Vermilion as leading to favorable results in its "other" segment.

The only dark side appears to be Taito. Due to a "severe business environment," as listed in the company's English language earnings report, Taito is expected to underperform in sales and operating income.

Outside of games, Square Enix also expects stronger performance for its publishing business due to increased sales for comics such as Soul Eater, Sekirei and Nabari no Ou.

Despite this update, the Square Enix does not expect any change to its earnings for fiscal 2009 as a whole.

Square Enix will hold its full quarterly briefing on the 7th.