Becoming loss-making due to weak game title sales and release delays
First written in FY2017-Q3. 14 of 27 entries say "Worsened", first in FY2017. Latest entry: FY2024.
Systena moved to the "Worse" side of this theme in 2019, 3 years after the typical company in this theme (2016).
1 other company's latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「As a result, sales in this business were ¥187 million, down 39.5% year on year, and operating profit was ¥33 million, compared with an operating loss of ¥0 million in the previous fiscal year.」
Although the Investment and Development Business, including the games business, posted lower revenue, it turned from an operating loss in the previous fiscal year to operating profit, improving the risk of falling into the red. - FY2024-Q3MitigatedAnnual report
「As a result, sales in this business were ¥143 million, down 44.5% year on year, and operating profit was ¥27 million, compared with an operating loss of ¥2 million in the same period of the previous year.」
Although the Investment and Development Business, including the games business, posted lower revenue, it turned from an operating loss in the same period of the previous year to operating profit, improving the risk of falling into the red. - FY2024-Q2MitigatedAnnual report
「As a result, sales in this business were ¥94 million, down 47.0% year on year, and operating profit was ¥12 million, compared with an operating loss of ¥19 million in the same period of the previous year.」
Although the Investment and Development Business, including the games business, posted lower revenue, it turned from an operating loss of ¥19 million in the same period of the previous year to operating profit of ¥12 million, improving the risk of falling into the red. - FY2024-Q1MitigatedAnnual report
「As a result, sales in this business were ¥48 million, up 44.9% year on year, and operating profit was ¥2 million, compared with an operating loss of ¥45 million in the same period of the previous year.」
The Investment and Development Business, including the games business, turned from an operating loss of ¥45 million in the same period of the previous year to operating profit of ¥2 million, as the company advanced a review and optimization of its game operations structure and received orders for commissioned development. - FY2023MitigatedAnnual report
「As a result, sales in this business were ¥309 million, up 80.2% year on year, and the operating loss was ¥0 million, compared with an operating loss of ¥72 million in the previous fiscal year.」
While the company advanced operation of the new game and commissioned development of business applications, the Investment and Development Business posted an operating loss of ¥0 million, narrowing from ¥72 million in the previous year. - FY2023-Q3MitigatedAnnual report
「As a result, sales in this business were ¥258 million, up 92.4% year on year, and the operating loss was ¥2 million, compared with an operating loss of ¥35 million in the same period of the previous year.」
While the company advanced operation of the new game, held events, and undertook commissioned development, the operating loss of the Investment and Development Business narrowed from ¥35 million to ¥2 million. - FY2023-Q2WorsenedAnnual report
「As a result, sales in this business were ¥177 million, up 103.4% year on year, and the operating loss was ¥19 million, compared with an operating loss of ¥15 million in the same period of the previous year.」
Although the release of a new game and its download performance were reported, the operating loss of the Investment and Development Business as a whole widened year on year. - FY2023-Q1WorsenedAnnual report
「As a result, sales in this business were ¥33 million, down 18.4% year on year, and the operating loss was ¥45 million, compared with an operating loss of ¥12 million in the same period of the previous year.」
Although a new game was released and advertising expenses were incurred, the Investment and Development Business as a whole posted lower revenue, and its operating loss widened from ¥12 million to ¥45 million. - FY2022WorsenedAnnual report
「As a result, sales in this business were ¥171 million, down 3.6% year on year, and the operating loss was ¥72 million, compared with an operating loss of ¥71 million in the previous fiscal year.」
While the company advanced development of new games and the rollout of business applications, the Investment and Development Business posted lower revenue, and its operating loss widened slightly from the previous fiscal year. - FY2022-Q3MitigatedAnnual report
「As a result, sales in this business were ¥134 million, up 4.0% year on year, and the operating loss was ¥35 million, compared with an operating loss of ¥62 million in the same period of the previous year.」
The Investment and Development Business, including the games business, remained loss-making, but its operating loss narrowed year on year. - FY2022-Q2MitigatedAnnual report
「As a result, sales in this business were ¥87 million, up 0.5% year on year, and the operating loss was ¥15 million, compared with an operating loss of ¥35 million in the same period of the previous year.」
The Investment and Development Business, including the games business, remained loss-making, but its operating loss narrowed year on year. - FY2022-Q1MitigatedAnnual report
「In the first quarter, while operating existing content and appropriately managing projects in which the company participates, the company began developing new game content as planned, targeting release in the following fiscal year. As a result, revenue from this business was ¥40 million, down 10.1% year on year, and the business posted an operating loss of ¥12 million, compared with an operating loss of ¥15 million in the same period of the previous year.」
The company began developing a new game as planned. Although the operating loss from upfront investment narrowed year on year, the business remained loss-making and revenue continued to decline. - FY2021WorsenedAnnual report
「In the games business, the company released 2 new titles as planned, but sales of both titles failed to grow. In addition, higher production costs, including for 3D graphics, caused expenses to precede revenue. As a result, revenue from this business was ¥178 million, down 16.5% from the previous fiscal year, and the business posted an operating loss of ¥71 million, compared with an operating loss of ¥33 million in the previous fiscal year.」
Although 2 new titles were released, sales failed to grow, and higher production costs also contributed to a widening operating loss in the Investment and Development Business. - FY2021-Q3WorsenedAnnual report
「In the third quarter, the company refined the smartphone game app 『競馬伝説NextBlood!』, released in the second quarter, while developing a commissioned title scheduled for release in the fourth quarter. Despite pursuing these initiatives, revenue from this business was ¥129 million, down 18.3% year on year, and the business posted an operating loss of ¥62 million, compared with an operating loss of ¥21 million in the same period of the previous year.」
Although the company advanced refinement of the new title and development of the commissioned title, the Investment and Development Business posted lower revenue year on year, and its operating loss widened from ¥21 million to ¥62 million. - FY2021-Q2WorsenedAnnual report
「In the second quarter, we released the smartphone game app “Horse Racing Legend NextBlood!”. We will continue additional development to expand the in-game content.」
Although a new game was released, the Investment and Development Business as a whole posted an operating loss of ¥35 million, deteriorating from an operating loss of ¥8 million in the same period of the previous year. - FY2021-Q1WorsenedAnnual report
「In the first quarter, the company incurred upfront investment by announcing, conducting beta testing for, and promoting the smartphone game app 『競馬伝説NextBlood!』, scheduled for release this summer. As a result, revenue from this business was ¥45 million, down 28.3% year on year, and the business posted an operating loss of ¥15 million, compared with operating profit of ¥1 million in the same period of the previous year.」
Upfront investment in a new game resulted in lower revenue and a shift from operating profit of ¥1 million in the same period of the previous year to an operating loss of ¥15 million. - FY2020WorsenedAnnual report
「In the content business, the company advanced development of new titles for the following fiscal year, resulting in upfront investment. As a result, revenue from this business was ¥213 million, down 43.4% from the previous fiscal year, and the business posted an operating loss of ¥33 million, compared with operating profit of ¥4 million in the previous fiscal year.」
As development of new titles constituted upfront investment, the Investment and Development Business recorded lower revenue and an operating loss. - FY2020-Q1WorsenedAnnual report
「In the first quarter, amid the overlapping completion of commissioned titles in service and commissioned development projects, the company held new events for existing titles to stimulate in-game activity. As a result, revenue from this business was ¥63 million, down 43.1% year on year, and operating profit was ¥1 million, down 77.1% year on year.」
The overlapping completion of commissioned titles and commissioned development projects led to lower revenue and operating profit year on year in the Investment and Development Business following the change in reporting segments. - FY2019WorsenedAnnual report
「Following the poor performance of a new title released at the end of the previous fiscal year through the provision of its game engine, the company sought a turnaround with existing titles and released 1 new title. However, this did not make up for the underperforming title. As a result, revenue from this business was ¥397 million, down 20.6% from the previous fiscal year, and operating profit was ¥8 million, down 86.5%.」
The poor performance of new titles continued, and 1 new title and 2 commissioned projects were insufficient to offset the decline, resulting in lower revenue and operating profit. - FY2019-Q3WorsenedAnnual report
「In the third quarter, the company continued to concentrate resources on new content and released it ahead of schedule. Although the initial response was in line with expectations, the revenue contribution was limited to December alone, and the company did not recover its upfront investment. As a result, revenue from this business was ¥283 million, down 28.0% year on year, and the business posted an operating loss of ¥23 million, compared with operating profit of ¥91 million in the same period of the previous year.」
Although new content was released ahead of schedule, its revenue contribution was limited to December, resulting in a shift from operating profit of ¥91 million in the same period of the previous year to an operating loss of ¥23 million. - FY2019-Q2WorsenedAnnual report
「As a result, revenue from this business was ¥205 million, down 22.5% year on year, and the business posted an operating loss of ¥6 million, compared with operating profit of ¥83 million in the same period of the previous year.」
Declining revenue from existing content and upfront investment in new content resulted in a deterioration from operating profit of ¥83 million in the same period of the previous year to an operating loss of ¥6 million. - FY2019-Q1WorsenedAnnual report
「As a result, revenue from this business was ¥116 million, down 10.3% year on year, and operating profit was ¥7 million, down 81.9% year on year.」
While the company increased exposure to and investment in existing content, revenue and operating profit in the consumer services business declined year on year. - FY2018MitigatedAnnual report
「As a result, revenue from this business was ¥501 million, up 48.6% from the previous fiscal year, and operating profit was ¥65 million, compared with an operating loss of ¥7 million in the previous fiscal year.」
Revenue in the games business increased 48.6%, and the business turned from an operating loss of ¥7 million in the previous fiscal year to operating profit of ¥65 million. - FY2018-Q3MitigatedAnnual report
「As a result, revenue from this business was ¥392 million, up 79.4% year on year, and operating profit was ¥91 million, compared with an operating loss of ¥47 million in the same period of the previous year.」
The games business turned from an operating loss of ¥47 million in the same period of the previous year to operating profit of ¥91 million, while revenue increased 79.4% year on year. - FY2018-Q2MitigatedAnnual report
「As a result, revenue from this business was ¥265 million, up 91.3% year on year, and operating profit was ¥83 million, compared with an operating loss of ¥31 million in the same period of the previous year.」
In the games business, promotion of co-developed titles and other initiatives resulted in a turnaround from an operating loss of ¥31 million in the same period of the previous year to operating profit of ¥83 million, while revenue also increased. - FY2017WorsenedAnnual report
「However, in addition to weak sales of the 2 titles released in the previous fiscal year and a substantial delay in the launch of “Alteil Chronicle,” production costs for titles using the game engine increased. As a result, sales in this business were ¥337 million, down 13.2% year on year, and the operating loss was ¥7 million, compared with operating profit of ¥13 million in the previous fiscal year.」
Weak sales of existing titles, delays in launching titles and higher production costs caused sales to decline 13.2% and the business to shift from operating profit in the previous fiscal year to an operating loss. - FY2017-Q3MaterialisedAnnual report
「However, in addition to weak sales of the 2 titles released in the previous fiscal year, the launch of “Alteil Chronicle” was substantially delayed. As a result, sales in this business were ¥219 million, down 22.5% year on year, and the operating loss was ¥47 million, compared with operating profit of ¥1 million in the same period of the previous year.」
Weak sales of existing titles and delays in launching new titles caused the Consumer Services business to shift from operating profit in the same period of the previous year to an operating loss.