Definitely on the upswing, partially because of them bottoming out not too long ago, but also due to their relationships with other companies. I'm talking about 1) the Eidos acquisition and 2) their publishing model in Japan.

OP is correct in that they had a critical and commercial darling last year (Deus Ex), another big hit this year (Sleeping Dogs) and two more on the very-near horizon (Tomb Raider and Hitman: Absolution). These are games that resonate strongly with mainstream gaming consumers and I would only expect this to continue. I've interviewed the Director of Deus Ex, he's a bright up-and-coming creator, and from what he's said, the Japanese are fully behind him 100%.

The second plus I mentioned is that Square Enix publishes the Batman Arkham games and Call of Duty in Japan. These games actually do surprisingly well in Japan, so this is something Square Enix makes a lot of money off of, using almost none of their internal development resources.

And this is all without mentioning the fact that they're Square Enix. Their back catalogue is full of evergreen IP constantly being republished, Dragon Quest and Final Fantasy are always guaranteed money-makers because of the name alone. And could you imagine if they actually managed to make another AAA RPG classic? That would put them back on top, and they have the in-house personnel, as well as relationships with the most acclaimed freelancers, to do it.