I feel like Atlus filled the space Square left after the merge, and it is living the golden age similar to what Square enjoyed in the 90s early 2000s. A bunch of quality titles coming each year in the most diverse genres (I think just missing something like Ehrgeiz, maybe they pull it out with the Sega merge).
Not really sure what is different between the management of Atlus and Square Enix, but I feel like a bunch of Japanese companies are banking more on diluting their IPs and counting on the goodwill of people's nostalgia. At least Square Enix did not drop everything to pursue the pachinko business (I hope).
It seems that this article as based on this investor release, it has way more details omitted by the gamespot author https://www.hd.square-enix.com/eng/news/pdf/20250514_01_en.pdf
Some good takes there:
But some arguments and conclusions are a bit weak:
Cleary it is not the marginalized fault, downtown's declined has a lot to do with how the city is managed. And there are plenty of functional downtowns around the world where people buy online, Ikea and malls - so it is not their fault either.