Difficulty acquiring game titles for secondary operation transfers
First written in FY2017. 4 of 9 entries say "Materialised", first in FY2018-Q1. Latest entry: FY2020.
Media Kobo moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
1 other company's latest entry also says "Worsened".
- FY2020WorsenedAnnual report
「During the current consolidated fiscal year, as profitability in the secondary business declined, we focused on producing and distributing the new title 「コスプリ！」. However, sales for this new title were weak immediately after its release, and although we attempted to improve earnings through modifications, we were forced to conclude that reaching the target figures would be difficult.」
In addition to declining profitability in the secondary market, the company's own new title did not lead to improved earnings, and the company moved toward downsizing the game business in response to the difficulty of acquiring titles. - FY2019ReframedAnnual report
「In response, we are changing our policy by scaling back the secondary business and producing our own titles at an appropriate cost balance.」
In response to the difficulty of acquiring titles transferred for secondary operations, the game business changed its policy toward downsizing the business and producing its own titles. - FY2019-Q2WorsenedAnnual report
「At ルイスファクトリー, the company continued to be unable to acquire new titles transferred for operation due to the impact of intensifying competition in the secondary market.」
Against a backdrop of intensifying competition in the secondary market, the inability to acquire new titles transferred for operation has continued. - FY2019-Q1WorsenedAnnual report
「Results declined in both revenue and profit because the company was unable to acquire new titles transferred for operation amid intensifying competition in the secondary market and rising production costs, and because it sold some existing titles operated by the company.」
In addition to the continued inability to acquire new titles transferred for operation, the company explicitly identified intensifying competition in the secondary market and rising production costs as factors, which also led to lower revenue and profit. - FY2018MaterialisedAnnual report
「Sales declined year on year because ルイスファクトリー was unable to acquire new titles transferred for operation and because fees and other costs have been deducted from sales when recording revenue since the current consolidated fiscal year.」
The inability to acquire new titles transferred for operation in the secondary business continued through the full fiscal year, leading to lower sales in the game business. - FY2018-Q3MaterialisedAnnual report
「During the nine-month period of the current consolidated fiscal year, fees and other costs were deducted from sales when recording revenue, as had been the case since the first quarter, and the company was unable to acquire new titles transferred for operation. As a result, sales declined, but the game content business as a whole finished in the black.」
The inability to acquire new titles transferred for operation continued, and the associated risk continued to materialize in the form of lower sales. - FY2018-Q2MaterialisedAnnual report
「Sales declined because some content was closed, no new titles transferred for operation were acquired, and fees were deducted from sales when recording revenue. On an earnings basis, however, results increased due to the expansion of existing titles transferred for operation across platforms.」
The inability to acquire new titles transferred for operation continued, and the risk continued to emerge in the form of lower sales. However, earnings on an earnings basis increased through the expansion of existing titles across platforms. - FY2018-Q1MaterialisedAnnual report
「However, sales did not grow because no new titles transferred for operation were acquired, although」
The company was unable to acquire a new title transferred for operation, which would have been central to the secondary business, during the quarter, and sales therefore did not grow. - FY2017First statedAnnual report
「Going forward, we plan to focus on the secondary business at our subsidiary ルイスファクトリー and promote the business under a stable earnings model. However, if acquiring titles transferred for operation becomes difficult, issues including a change in policy, a review of the business, or withdrawal from the business may continue to arise.」
While making the secondary business its main focus going forward, the company has disclosed for the first time the risks of reviewing or withdrawing from the business if it cannot acquire titles transferred for operation.