Release of Multiple Game Titles and Monetization of New Services

「Because the blockchain game business has low profitability and its future outlook is uncertain, we have begun preparations for transferring the distribution rights for game titles and ending the services.」

「In addition to the NFT conversion function, the game’s key feature, we will expand the Free to Play and Earn experience through a substantial renewal of the offer function.」

「In the blockchain game business, the full version of “J.League Trading Soccer (abbreviated as “TRESACA J.LEAGUE”),” the first domestic J.League officially licensed game to use NFTs, was released on 26 January 2023. Under the concept of Free to Play and Earn (starting for free, enjoying the game and earning while playing), the NFT conversion function, the game’s key feature, was also implemented on 15 February 2023.」

「We released an open beta version for general users and worked on improvements toward the release of the full version under the concept of Free to Play and Earn (starting for free, enjoying the game and earning while playing). The full version was released on 26 January 2023.」

「The game is scheduled to be offered as a Free to Play and Earn blockchain game, and preparations for its release are continuing.」

「In the blockchain game business, we are jointly planning and developing with OneSports Co., Ltd., a subsidiary of AltPlusInc., “J.LEAGUE Trading Soccer (abbreviated as “TRESACA J.LEAGUE”),” the first domestic J.League officially licensed game to use NFTs. We are proceeding with planning and development toward its release this summer as a Free to Play and Earn blockchain game.」

「Accordingly, while promoting our business under the policies of “breaking away from a loss-making structure with a view to returning to profitability next fiscal year” and “transforming our business structure by replacing our core businesses,” we determined that transferring this business and related operations to another company would be optimal for both the Company and the stakeholders of this business, and decided to transfer them.」

「Revenue and profit declined year on year due to changes in the composition of game titles from the same period of the previous year and the review of the operating policy for the puzzle game “COLOR PIECEOUT” during the first quarter of the consolidated fiscal year, which caused performance to fall below the initial expectations, among other factors.」

「Revenue fell significantly below the initial expectations following a review of the operating policy for the puzzle game “COLOR PIECEOUT (カラー ピーソウト).”」

「The puzzle game “COLOR PIECEOUT,” which launched in May this year, began offering its English-language version in 105 countries worldwide on 26 September this year. In Japan, the Company gradually expanded promotion and pursued user acquisition as various metrics, including retention rates, remained strong.」

「The puzzle game “COLOR PIECEOUT,” currently in operation, launched on Android OS on 28 May and on iOS on 25 June. In addition to its core users in their 20s and 30s, it has gained strong support from users across a wide range of age groups, particularly women, and its various retention rates have remained above expectations.」

「Although “終幕彼女 (End Roll)” would require substantial funding for future development and promotional expenses, the Company decided to discontinue development of the game independently and pursue IP development in the and Experience business using its characters and scenarios, in light of an environment in which the core of JRPGs is shifting from original concepts to IP-based titles. For “COLOR PIECEOUT,” which was under development, the Company conducted a domestic open beta test from 19 March for final adjustments before the service launch, checked the game system, features and various KPIs based on user behaviour, and proceeded with final adjustments toward the service launch as KPIs remained above expectations and based on feedback regarding the features and system.」

「“幽☆遊☆白書 100％本気(マジ)バトル,” currently in operation, has been making a substantial contribution to sales since the current fiscal year」

「“幽☆遊☆白書 100％本気(マジ)バトル,” developed jointly with KLab Inc., began service on 28 August 2018 and contributed to sales, reaching a high of 16th place in the App Store game sales rankings, according to App Annie.」

「The Company proceeded with development toward the launch of new game titles. For the project code name “PP,” it adjusted the in-game balance and other elements based on the results of user tests conducted in 3 overseas countries. For “終幕彼女 (End Roll),” it successively announced new characters and their voice actors on the official website and elsewhere.」

「“PP,” whose core game was being developed in the alpha phase, moved into the beta phase, and the Company proceeded with further development of its features.」

「The Company launched the online lottery service “Kujikore” and held its first offering in October. It is preparing to provide special experiences and merchandise available only through “Kujikore” from the second offering onward.」

「For the fiscal year ending September 2018, multiple game titles under development in the Game business were approaching release. In the new business, the Company launched multiple services and pursued initiatives to monetise them sequentially.」