Intensifying Competition in the Online Gaming Market and Declines in Users and Revenue
First written in FY2021. 4 of 10 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).
0 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「In the fields of smartphone online games and digital services for fans in which the Group operates, there are numerous competitors and user preferences and trends change rapidly, creating a constant need to plan, develop and operate attractive content.」
The traditional competitive risk in the online gaming market is reframed as a risk encompassing digital services for fans and the fan-culture sector. - FY2025WorsenedAnnual report
「In the online gaming industry, the market has entered a stable period and is remaining largely flat, while titles from overseas companies are gaining visibility, and the challenging competitive environment continues.」
Describes a challenging competitive environment in which the game market remains largely flat and titles from overseas companies are gaining greater visibility. - FY2024WorsenedAnnual report
「In the online gaming industry, the domestic game-app market showed a slight contraction as demand from people staying home in response to the spread of COVID-19 subsided.」
Describes a market environment in which the domestic game-app market is trending downward as demand from people staying home subsides. - FY2024-Q3WorsenedAnnual report
「For titles whose operations changed, anniversary events were held in September to mark the fourth anniversary of the launch of Kemono Friends 3 and UNI'S ON AIR (Unison Air), contributing to revenue, although revenue did not grow as much as planned. Meanwhile, costs declined as the Company continued to streamline the operating structure and bring outsourced functions in-house after the change in operations.」
Although events for titles whose operations changed contributed to revenue, revenue did not grow as much as planned. Across the online gaming business, revenue declined 4.6% year on year and segment profit declined 39.5%. - FY2024-Q2WorsenedAnnual report
「For UNI'S ON AIR (Unison Air), whose operations changed, we streamlined the operating structure and brought outsourced functions in-house after the change in operations, implementing measures to reduce costs. However, results fell below the projected earnings plan because certain content costs increased and revenue was unstable. As a result, revenue for the cumulative second quarter ended 1,489,895 thousand yen, up 5.9% year on year, and segment profit was 11,806 thousand yen, down 84.1% year on year.」
For titles whose operations changed, revenue remained unstable and results continued to fall short of the earnings plan, while segment profit in the online gaming business also declined 84.1% year on year. - FY2024-Q1MaterialisedAnnual report
「For titles whose operations changed, we implemented measures to reduce costs by streamlining the operating structure and bringing outsourced functions in-house after the change in operations, but results fell below the earnings plan.」
For online game titles whose operations changed, results actually fell below the earnings plan despite efforts to improve efficiency and bring outsourced functions in-house. - FY2023MaterialisedAnnual report
「In the online gaming business, we recognized an impairment loss of ¥40.821 million on Kemono Friends 3, for which operations changed in August 2021, and Arca Last, for which operations changed in June 2022, because we determined that recovering the investment within the initially planned two-year period would be difficult.」
For the 2 titles whose operations changed, it was determined that recovering the investment within the planned period would be difficult, and impairment losses were recognized. - 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.」
Regarding the risk of insufficient support and revenue for game titles, the disclosure adds the termination of services for existing titles and the reallocation of management resources. - 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.」
The risk of game-title users and revenue falling below expectations actually materialized for Over Eclipse. - FY2021First statedAnnual report
「However, if game titles provided by the Company fail to gain user support, or if the number of users and revenue from those titles decline significantly due to intensifying competition with other companies, this could affect the Company's business and other operations.」
Risk relating to gaining support for game titles and differentiating them from competitors.