Release risk from rising game costs and longer development periods
First written in FY2016. 3 of 6 entries say "Materialised", first in FY2017-Q3. Latest entry: FY2020.
Silicon Studio Corp. moved to the "Worse" side of this theme in 2017, 7 years before the typical company in this theme (2024).
The whole theme swung hardest in 2026: 4 of 9 companies on the "Worse" side.
0 other companies' latest entry also says "Dropped".
- FY2020DroppedAnnual reportThe current year’s business and other risk disclosures do not explicitly state an individual risk relating to rising game costs and longer development periods.
- FY2018WorsenedAnnual report
「Given the scale of our business, these business risks have a significant impact on our performance, and we determined that it would be difficult to continue this business independently. We therefore decided to transfer part of the business.」
The risks of longer game development periods, rising costs and intensifying competition led to the decision that it would be difficult to continue the content business independently and to the transfer of part of the business. - FY2018-Q2MaterialisedAnnual report
「In recent years, the smartphone game market has seen longer development periods and rising development costs as game content becomes more extensive and complex and graphics become more sophisticated, while competition with other companies has also intensified. As these business risks have a significant impact on the Group’s performance, the Group determined that it would be difficult to continue the content business independently.」
The traditional risks of longer development periods, rising development costs and intensifying competition led to the specific conclusion that it would be difficult to continue the content business independently. - FY2017MaterialisedAnnual report
「Results fell substantially below the initial full-year plan due to longer development periods, failure to close contract development projects despite demand, intensifying competition from products offered by other companies with lower implementation costs, and reductions in project scale.」
Risks relating to the profitability and failure to meet plans for development projects, including longer development periods and reductions in project scale, actually emerged in full-year performance. - FY2017-Q3MaterialisedAnnual report
「The results fell short of plan because the release of several pieces of content scheduled for the third quarter was postponed to the fourth quarter or later to improve quality.」
Delays in the release of new content actually occurred, resulting in failure to meet the plan. - FY2016First statedAnnual report
「Production and development costs in the game content market are increasing year by year as game content becomes more extensive and complex and graphics become more sophisticated. In addition, as the period from planning to release tends to grow longer, users’ preferences may change before release, and if a game released by the Group is less well received than anticipated, this may affect the Group’s business operations and performance.」
The risk that user preferences may diverge from the market at the time of release due to rising development costs and longer development periods was identified.