Continued Losses in the VR Business and Uncertainty Regarding Technological and Customer Acceptance
First written in FY2019. 11 of 25 entries say "Mitigated", first in FY2022-Q3. Latest entry: 2026-08-07.
PBsystems moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2023: 4 of 7 companies on the "Worse" side.
6 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「Sales in the Emotional System business were ¥81.117 million, up 70.4% from the previous fiscal year, and operating loss was ¥5.165 million, compared with an operating loss of ¥16.853 million in the previous fiscal year.」
As sales increased and operating loss narrowed, the risks of continuing losses and customer acceptance in the VR business were partially reduced. However, the operating loss continued. - FY2025-H1WorsenedAnnual report
「As a result, revenue from the Emotional Systems business was ¥38.564 million, down 1.9% year on year, and the segment loss was ¥4.017 million, compared with a segment profit of ¥1.014 million in the same period of the previous year.」
The Emotional System business, which had posted a profit in the previous interim period, again posted a segment loss in the current interim period, with uncertainty over the sustainability of profitability materializing in actual results. - FY2024MaterialisedAnnual report
「Sales in the Emotional System business were ¥47.595 million, down 46.7% from the previous fiscal year, and operating loss was ¥16.853 million, compared with operating profit of ¥16.544 million in the previous fiscal year.」
After turning profitable on a full-year basis in the previous fiscal year, the business posted an operating loss in the current fiscal year, with uncertainty over its ability to remain profitable materializing as an actual deterioration in performance. - FY2024-Q2Profit maintained but earnings declinedAnnual report
「However, revenue growth stalled due to a decline following the end of the initial surge in event demand for MetaWalkersⓇ from telecommunications operators. Revenue from the Emotional Systems business was ¥39.317 million, down 15.0% year on year, and the segment profit was ¥1.014 million, down 89.3% year on year.」
The Emotional System business remained profitable rather than returning to a loss, but profit declined substantially due to a reactionary drop in event demand, demonstrating earnings volatility. - FY2023MitigatedAnnual report
「Revenue from the Emotional Systems business was ¥89.360 million, up 73.1% from the previous fiscal year, and operating income was ¥16.544 million, compared with an operating loss of ¥3.561 million in the previous fiscal year.」
The Emotional System business turned profitable on a full-year basis through MetaWalkers event and leisure projects and the adoption of corporate metaverse solutions, reducing the risk of continuing losses. However, the risks associated with VR/AR technological innovation, consumer acceptance and development investment continue to be disclosed. - FY2023-Q3MitigatedAnnual report
「As a result, sales in the Emotional System business were ¥69.554 million, up 364.1% year on year, and segment profit was ¥12.850 million, compared with segment loss of ¥10.661 million in the same quarter of the previous year.」
Progress in domestic leisure projects and corporate metaverse projects enabled the Emotional System business to turn from a loss in the same period of the previous year to a profit, reducing the risk of continuing losses. - FY2023-Q2MitigatedAnnual report
「As a result, sales in the Emotional System business were ¥46.273 million, up 1493.1% year on year, and segment profit was ¥9.491 million, compared with segment loss of ¥9.868 million in the same quarter of the previous year.」
Progress in event projects and corporate metaverse projects enabled the Emotional System business to turn from a loss in the same period of the previous year to a profit, further reducing the risk of continuing losses. - FY2023-Q1MitigatedAnnual report
「Multiple orders for MetaWalkers event applications from a major telecommunications operator with sales channels to large companies, together with the initial contribution to revenue from corporate metaverse development projects, resulted in revenue of ¥20.488 million, up 1651.8% year on year, and a segment profit of ¥5.306 million, compared with a segment loss of ¥4.956 million in the same quarter of the previous year. The business returned to profitability for the first time in 14 quarters since the cumulative third-quarter period of 2019, and for the first time since its separate listing on the Fukuoka Stock Exchange.」
The Emotional System business returned to profitability through new project orders, temporarily reducing the risk of continuing losses. However, the disclosure does not establish sustainable earnings power, as this was based on quarterly results. - FY2022MitigatedAnnual report
「As a result of actively promoting event operation services using 4DOH, sales in the Emotional System business were ¥51.608 million, compared with ¥13.402 million in the previous fiscal year, and operating loss was ¥3.561 million, compared with an operating loss of ¥29.693 million in the previous fiscal year.」
Promotion of event operation services increased sales, and operating loss narrowed from ¥29.693 million to ¥3.561 million. However, the business remained loss-making. - FY2022-Q3MitigatedAnnual report
「As sales of event operation projects using 4DOH and other services progressed smoothly, revenue from the Emotional Systems business was ¥14.986 million, compared with ¥6.744 million in the same quarter of the previous year, and the segment loss was ¥10.661 million, compared with a loss of ¥24.310 million in the same quarter of the previous year.」
Sales increased through event operation projects and other activities, and segment loss narrowed, partially reducing the risk of continuing losses. However, the business remains loss-making. - FY2022-Q2Narrowing losses alongside failure to secure new ordersAnnual report
「As no orders were received during the second quarter for 4DOH, the core product, sales consisted of accumulated small projects such as 4DOH maintenance at existing facilities and website production for educational institutions. As a result, sales in the Emotional System business were ¥2.904 million, compared with ¥5.749 million in the same quarter of the previous year, and segment loss was ¥9.868 million, compared with a loss of ¥16.581 million in the same quarter of the previous year.」
While the failure to secure new orders and the decline in sales continued, segment loss narrowed from the same period of the previous year, representing a change contrary to the risk of continuing losses. - FY2022-Q1WorsenedAnnual report
「As no orders were received during the first quarter for 4DOH, the core product, sales consisted of accumulated small projects such as 4DOH maintenance at existing facilities. As a result, sales in the Emotional System business were ¥1.169 million, compared with ¥2.690 million in the same quarter of the previous year, and segment loss was ¥4.956 million, compared with a loss of ¥9.139 million in the same quarter of the previous year.」
Although segment loss narrowed, no new orders for 4DOH were secured and sales declined year on year, while the business remained loss-making and uncertainty over customer acceptance continued. - FY2021WorsenedAnnual report
「As no orders were received during the fiscal year for 4DOH, the core product, sales consisted of accumulated small projects such as 4DOH maintenance at existing facilities. As a result, sales in the Emotional System business were ¥13.402 million, down 66.5% from the previous fiscal year, and operating loss was ¥29.693 million」
No new orders for 4DOH were secured, sales fell substantially, and the operating loss continued. - FY2021-Q3WorsenedAnnual report
「Although the company pursued orders to develop the disaster-prevention and industrial fields, it did not secure any orders for 4DOH during the third quarter. As a result, it accumulated small projects, including 4DOH maintenance at existing facilities, and revenue from the Emotional Systems business was ¥6.744 million, down 82.3% year on year, while the segment loss was ¥24.310 million, compared with a segment loss of ¥23.040 million in the same period of the previous year.」
No new orders for 4DOH were secured, sales in the VR business fell 82.3% year on year, and segment loss widened to ¥24.310 million. - FY2021-Q2WorsenedAnnual report
「As we did not receive any orders for 4DOH during the second quarter, sales consisted of accumulated small projects, including 4DOH maintenance at existing facilities. As a result, sales in the Emotional System business were ¥5.749 million, down 84.7% year on year, and segment loss was ¥16.581 million, compared with a segment loss of ¥10.468 million in the same period of the previous year.」
No new orders for 4DOH were secured, sales fell 84.7% year on year, and segment loss widened from ¥10.468 million to ¥16.581 million. - FY2021-Q1WorsenedAnnual report
「As a result of efforts to improve i4DOH and develop demand to adapt to the new normal, revenue from the Emotional Systems business was ¥2.690 million, down 89.4% year on year, and the segment loss was ¥9.139 million, compared with a segment loss of ¥991 thousand in the same quarter of the previous year.」
Losses continued in the VR business, with sales down 89.4% year on year and segment loss widening from ¥991 thousand in the same period of the previous year to ¥9.139 million. - FY2020WorsenedAnnual report
「Since launching the Emotional System business in earnest, we have continued to post an operating loss.」
The business remained loss-making in the current fiscal year, and the operating loss widened to ¥31.863 million. Risks of lower profitability from adapting to new technologies, consumer acceptance and additional investment also continue. - FY2020-Q3WorsenedAnnual report
「Due to the cancellation of various 4DOH events and delays in orders resulting from the spread of COVID-19, sales in the Emotional System business were ¥38.042 million, down 64.9% year on year, and segment loss was ¥23.040 million, compared with segment profit of ¥12.796 million in the same quarter of the previous year.」
Event cancellations and order delays resulting from the spread of COVID-19 occurred, worsening the Emotional System business from segment profit in the same period of the previous year to a loss of ¥23.040 million. - FY2020-Q2WorsenedAnnual report
「As orders for 4D王, the core strategic product, were delayed due to the spread of COVID-19, revenue from the Emotional Systems business was ¥37.678 million and the segment loss was ¥10.468 million.」
An external factor, delays in orders for 4D King, actually occurred. In addition to the continuing loss in the Emotional System business, cumulative segment loss reached ¥10.468 million. - FY2020-Q1RestatedAnnual report
「As sales of 4D王, the core strategic product, progressed as planned, revenue from the Emotional Systems business was ¥25.473 million and the segment loss was ¥991 thousand.」
Although sales of 4D King progressed as planned, the Emotional System business remained loss-making. - FY2019First statedAnnual report
「Since launching the Emotional System business in earnest, we have continued to post an operating loss.」
The operating loss narrowed to ¥1.195 million in the current fiscal year, but the business remains loss-making, with technological innovation, consumer acceptance and additional investment disclosed as risks.