Development costs for new game titles, failure to meet sales targets, and release delays
First written in FY2021. 3 of 5 entries say "Materialised", first in FY2022-Q2. Latest entry: FY2026.
Appirits moved to the "Worse" side of this theme in 2021, 3 years before the typical company in this theme (2024).
The whole theme swung hardest in 2026: 4 of 9 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Regarding future business development, the Company is shifting from developing new products through its own investment to a prudent development policy centred on commissioned development projects, with an emphasis on reducing development risk and generating revenue at an early stage.」
The disclosure states that the Company shifted its policy towards commissioned development in order to reduce the risks associated with its own investment in and development of new games. - FY2023MaterialisedAnnual report
「Although game development involves substantial upfront investment, there is no guarantee that newly developed game titles will achieve the expected sales due to the release of new titles by competitors and changes in user preferences, and the Company may decide to freeze development or discontinue services.」
In connection with the risks of upfront investment in new games and failure to generate revenue, the Company failed to recover its investment in a title whose operation had been transferred to it and recorded an impairment loss of ¥40.821 million. - FY2022-Q3MaterialisedAnnual report
「Services for the Company's proprietary titles Unknown Bride and Over Eclipse ended on 28 October 2021, after which management resources were redirected and reallocated to the development of new game titles and other initiatives.」
The disclosure states that, with respect to the risk of failure to generate revenue from a new game title, the specific outcome of service termination occurred. - FY2022-Q2MaterialisedAnnual report
「Because the number of users of Over Eclipse fell significantly below expectations, we determined that the expected revenue could no longer be generated and recognized an impairment loss of ¥36.445 million on development costs recorded as software, as an extraordinary loss.」
For a new game title, the shortfall in users and revenue and the impairment of development costs actually occurred. - FY2021First statedAnnual report
「However, although game development involves substantial costs, there is no guarantee that newly developed game titles will achieve the expected sales due to changes in user preferences, and development may be frozen or the service may be discontinued. In addition, the release date of a new game title may be changed if the development period is extended due to additional development to improve the game's quality or the occurrence of defects or other issues.」
Development costs, sales, development freezes and service discontinuations, and release timing are presented as an integrated set of risks.