Worth reading
63In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
30
¥ millions (operating profit forecast for the fiscal year ending August 2027)Wording
Avoiding a definitive answer
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+3.7%
基準 2,026Target2,100Millions of yen
Operating profit+0.1%
基準 2,026Target2,029Millions of yen
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planOperating profitability (numerical target not disclosed) → Operating loss of ▲162 (actual results for the fiscal year ended August 2026)
Investment amount by sectorField Reduction in existing development costs / Amount +¥573 million / Timing Factors affecting the change in operating profit for the fiscal year ending August 2027, Field Development investment in new titles / Amount ▲¥709 million / Timing Factors affecting the change in operating profit for the fiscal year ending August 2027
Key initiatives
01Expansion of collaboration on leading IP
02Restarting new development of original titles
03Refinement of the SEED platform
04Company-wide use of AI
05Transition to AI-driven development
06A leaner, more selective workforce and higher productivity
Plan assumptionsBased on the SEED platform and the use of AI, Global distribution and multilingual support are premises of the company's business strategy
Non-financial targetsIndicator name Company-wide generative AI adoption rate / Target value 100％ / Timing Utilization policy as of the time of disclosure, Indicator name Number of Employees / Target value 120 people / Timing Expected at the end of the first quarter of the fiscal year ending August 2027
Size of the Target MarketOverseas market size for Japanese content: ¥6.00 trillion in 2024, up from ¥1.56 trillion in 2013. Source: Human Media, "Database of the Japanese and Global Media and Content Markets 2025", Global mobile game market: ¥12.6 trillion in 2024, including ¥1.66 trillion in Japan. Source: Kadokawa ASCII Research Laboratories, "Fami通 Mobile Game White Paper 2025", Overseas sales of content originating in Japan: ¥6.1 trillion in 2024; the government's target is ¥20 trillion in 2033. Source: Ministry of Economy, Trade and Industry, 2026
Risks identified by the company
Competition
Platform operators
Collaboration Partners
International expansion
Recovery of development and advertising costs
Reason for revision or withdrawal
Sales of the key live-service titles stagnated, and the company failed to achieve operating profitability for the full year. The company took this result seriously and addressed profitability issues at some live-service titles. Investment decisions will follow a discipline of assessing profitability first.
| Item | Details |
|---|---|
| Plan name | New Medium-Term Management Policy |
| Plan period | Next 3 years (fiscal years ending August 2027 to August 2029) |
| Progress against the plan | Formulated |
| Sales Target | 1,944 (actual results for the fiscal year ended August 2026) → 2,100 (earnings forecast for the fiscal year ending August 2027; numerical targets for the final fiscal year ending August 2029 have not been disclosed)（＋8.0％） |
| Operating profit target | ▲162 (actual results for the fiscal year ended August 2026) → 30 (earnings forecast for the fiscal year ending August 2027; numerical targets for the final fiscal year ending August 2029 have not been disclosed)（Return to profitability） |
| Investment amount by sector | Field Reduction in existing development costs / Amount +¥573 million / Timing Factors affecting the change in operating profit for the fiscal year ending August 2027, Field Development investment in new titles / Amount ▲¥709 million / Timing Factors affecting the change in operating profit for the fiscal year ending August 2027 |
| Non-financial targets | Indicator name Company-wide generative AI adoption rate / Target value 100％ / Timing Utilization policy as of the time of disclosure, Indicator name Number of Employees / Target value 120 people / Timing Expected at the end of the first quarter of the fiscal year ending August 2027 |
| Plan assumptions | Based on the SEED platform and the use of AI, Global distribution and multilingual support are premises of the company's business strategy |
| Key initiatives | Expansion of collaboration on leading IP, Restarting new development of original titles, Refinement of the SEED platform, Company-wide use of AI, Transition to AI-driven development, A leaner, more selective workforce and higher productivity |
| Results under the previous plan | Operating profitability (numerical target not disclosed) → Operating loss of ▲162 (actual results for the fiscal year ended August 2026) |
| Reason for revision or withdrawal | Sales of the key live-service titles stagnated, and the company failed to achieve operating profitability for the full year. The company took this result seriously and addressed profitability issues at some live-service titles. Investment decisions will follow a discipline of assessing profitability first. |
| Size of the Target Market | Overseas market size for Japanese content: ¥6.00 trillion in 2024, up from ¥1.56 trillion in 2013. Source: Human Media, "Database of the Japanese and Global Media and Content Markets 2025", Global mobile game market: ¥12.6 trillion in 2024, including ¥1.66 trillion in Japan. Source: Kadokawa ASCII Research Laboratories, "Fami通 Mobile Game White Paper 2025", Overseas sales of content originating in Japan: ¥6.1 trillion in 2024; the government's target is ¥20 trillion in 2033. Source: Ministry of Economy, Trade and Industry, 2026 |
| Risks identified | Competition, Platform operators, Collaboration Partners, International expansion, Recovery of development and advertising costs |
| Publication date | 13 October 2026 |
Items this document does not state (11)
Operating profit margin targetNet income targetROE targetROIC targetPayout ratio / DOE policyTreasury share acquisition policyCost of capitalSelf-assessment of PBR and share priceTotal investment planSegment targetDate of board resolution
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Sales of the key live-service titles stagnated, and the company failed to achieve full-year operating profitability for the fiscal year ended August 2026. To address profitability issues at some live-service titles, it reviewed its cost structure, focusing primarily on fixed costs. For the fiscal year ending August 2027, the company expects full-year contributions from collaboration titles, improved profitability at existing titles, and a full-year contribution from the revised fixed-cost structure.
How to read this page
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.