Increase in Development and Advertising Expenses and Investment Recovery Risk
First written in FY2016. 8 of 16 entries say "Materialised", first in FY2017-Q3. Latest entry: FY2026.
Akatsuki moved to the "Worse" side of this theme in 2017, 3 years before the typical company in this theme (2020).
The whole theme swung hardest in 2025: 4 of 15 companies on the "Worse" side.
1 other company's latest entry also says "Other".
- FY2026Lower R&D expenses and higher advertising expensesAnnual report
「R&D expenses ¥5,187 million ¥506 million」
R&D expenses declined from ¥5,187 million in the previous fiscal year to ¥506 million, while advertising expenses increased from ¥946 million to ¥1,276 million. Investment in new development has run its course, resulting in a change in the expense mix. - FY2026-H1Higher advertising expenses and lower R&D expensesAnnual report
「Advertising expenses ¥273 million ¥1,000 million R&D expenses ¥2,701 million ¥484 million」
Advertising expenses increased from ¥273 million in the interim period of the previous year to ¥1,000 million, owing to user acquisition initiatives for new titles and other factors. Meanwhile, R&D expenses declined from ¥2,701 million to ¥484 million. - FY2025WorsenedAnnual report
「In the games business, the company will continue to seek to maximize LTV from existing titles, while development costs and initial promotional expenses for new titles are expected to increase. Through the release of "Kaiju No. 8 THE GAME," the company aims to achieve medium- to long-term growth.」
The company explicitly indicated that development costs and initial promotional expenses for new titles are expected to increase. R&D expenses also increased from ¥4,746 million in the previous fiscal year to ¥5,187 million. - FY2025-H1WorsenedAnnual report
「R&D expenses during the current interim consolidated accounting period were ¥2,701 million.」
R&D expenses increased from ¥2,317 million in the same interim period of the previous year to ¥2,701 million. The expense burden associated with new development investment has increased on an interim-period basis. - FY2024MaterialisedAnnual report
「R&D expenses ¥4,746 million Advertising expenses ¥1,507 million」
The company recorded R&D expenses of ¥4,746 million and advertising expenses of ¥1,507 million in connection with investment in new titles and major projects. The investment burden has materialized as expenses. - FY2024-Q3MaterialisedAnnual report
「However, the review of the portfolio, including changes to the operating structure of the official Sakurazaka46 and Hinatazaka46 fan music app "UNI'S ON AIR (ユニゾンエアー)" in June of the previous year, together with higher promotional expenses for newly released titles and higher development costs for new titles, resulted in lower revenue and earnings year on year.」
Higher promotional and development expenses for newly released titles resulted in lower revenue and earnings year on year. The risk of recovering development and promotional investment continues to be reflected in performance. - FY2023-Q3MaterialisedAnnual report
「Impairment losses － 63」
The company recognized impairment losses of ¥63 million during the 9-month period, indicating that the risk of recovering investment and development costs continues to materialize. - FY2020MaterialisedAnnual report
「During the consolidated fiscal year, the Group recognized impairment losses on the following asset groups.」
The company recognized impairment losses totaling ¥821 million on operating assets in other businesses, including ¥708 million for buildings and structures and ¥79 million for tools, furniture and fixtures. The investment recovery risk continues to materialize. - FY2020-Q2MaterialisedAnnual report
「Impairment losses － 650」
The company recognized impairment losses of ¥650 million during the 6-month period of the current fiscal year, indicating that the risk of recovering development and investment costs continues to materialize. - FY2019-Q3MaterialisedAnnual report
「Extraordinary losses Loss on disposal of property, plant and equipment － 27 Impairment losses － 273 Total extraordinary losses － 300」
The company recognized impairment losses of ¥273 million during the 9-month period of the current fiscal year, indicating that the investment recovery risk continues to materialize. - FY2018MaterialisedAnnual report
「Because certain services in the mobile games business were no longer expected to generate the revenue originally forecast, the company recognized impairment losses on the asset group associated with that business.」
Revenue originally expected from certain services was no longer anticipated, and an impairment loss of ¥223.612 million was recognized on software. The investment recovery risk materialized again in the fiscal year. - FY2017RestatedAnnual report
「The Group is working to establish a stable financial structure by managing actual development costs against budget for each game content unit and carrying out advertising after assessing cost effectiveness. However, if unforeseen circumstances result in the investment failing to produce commensurate benefits, this may affect the Group's business and performance.」
The company continues to identify higher development and advertising expenses and investment recovery risk, while citing actual-versus-budget management and verification of advertising cost effectiveness as mitigation measures. - FY2017-Q3MaterialisedAnnual report
「Because certain services in the social games business were no longer expected to generate the revenue originally forecast, the company recognized impairment losses on the asset group associated with that business.」
Revenue originally expected from certain services was no longer anticipated, and impairment losses were recognized on the asset group. This is cited as an actual instance of the risk of failing to recover investments in development, advertising and related expenses. - FY2016First statedAnnual report
「In recent years, the improvement in the quality of native apps has tended to lengthen development periods and drive up development costs.」
The company identifies longer development periods, rising development costs, substantial television advertising investment, and the impact on performance if the investment does not produce the expected results as risks.