Worth reading
57In focus
Scored from 5 of 6 sectionsDirection
Mixed performance
Direction inferred from the company’s description.Scale
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Displayed only when the document provides numerical figures.Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&AFY ending August 2026, third quarter5 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Results for the three months of the current quarterThird-quarter standalone revenue was ¥1.36 billion. An operating loss was reported, but the amount of the operating loss is Not disclosed.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Broadly within the expected rangeKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Factors behind the decline in profit in the Games business: higher fixed costs, idle capacity caused by the suspension of development, and the decline in revenue sharing following the previous year's increase.
- Response regarding development staff: assigning them to new projects in stages, reallocating them to existing work, and utilizing them for training and research and development.
- Coverage of lost revenue: a certain amount of coverage has been achieved, but the full amount has not been recovered.
- Likelihood of achieving the full-year forecast: progress is broadly within expectations, and results remain within a range that does not require a forecast revision.
- Outlook for the fiscal year ending August 2027: stable performance is expected, although profitability may be slow to build in the first half as late-stage development work overlaps with the launch of new projects.
- Overseas business and support for Nintendo Switch 2: small- and medium-sized overseas projects are under way, and many of the major titles support multiple platforms, including Nintendo Switch 2.
- Rebuilding of the Nagaokakyo TOSE Building: the project is currently within the planned scope, but inflation and rising construction material costs are being closely monitored.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Fixed costs increased by several percent year on year; revenue sharing in the previous year was higher than usual by several hundred million yen, resulting in a subsequent decline; and development for overseas clients was suspended, creating idle capacity. The individual impact on the current period is Not disclosed.
New initiatives
- Securing new development projects at an early stage and launching them promptly after receiving orders
- Strengthening the use of internal resources
- Improving skills and productivity through training and research and development
- Considering contractual provisions that would require a certain level of compensation in the event of a sudden cancellation of a development phase
Segment results
In the Games business, revenue increased year on year, while segment operating profit declined substantially. The figures are Not disclosed.| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | FY ending August 2026, third quarter |
| Results for the three months of the current quarter | Third-quarter standalone revenue was ¥1.36 billion. An operating loss was reported, but the amount of the operating loss is Not disclosed. |
| Self-assessment against the plan | Broadly within the expected range |
| Segment results | In the Games business, revenue increased year on year, while segment operating profit declined substantially. The figures are Not disclosed. |
| Breakdown of Factors Affecting the Change | Fixed costs increased by several percent year on year; revenue sharing in the previous year was higher than usual by several hundred million yen, resulting in a subsequent decline; and development for overseas clients was suspended, creating idle capacity. The individual impact on the current period is Not disclosed. |
| Key points of the Q&A | Factors behind the decline in profit in the Games business: higher fixed costs, idle capacity caused by the suspension of development, and the decline in revenue sharing following the previous year's increase., Response regarding development staff: assigning them to new projects in stages, reallocating them to existing work, and utilizing them for training and research and development., Coverage of lost revenue: a certain amount of coverage has been achieved, but the full amount has not been recovered., Likelihood of achieving the full-year forecast: progress is broadly within expectations, and results remain within a range that does not require a forecast revision., Outlook for the fiscal year ending August 2027: stable performance is expected, although profitability may be slow to build in the first half as late-stage development work overlaps with the launch of new projects., Overseas business and support for Nintendo Switch 2: small- and medium-sized overseas projects are under way, and many of the major titles support multiple platforms, including Nintendo Switch 2., Rebuilding of the Nagaokakyo TOSE Building: the project is currently within the planned scope, but inflation and rising construction material costs are being closely monitored. |
| New initiatives | Securing new development projects at an early stage and launching them promptly after receiving orders, Strengthening the use of internal resources, Improving skills and productivity through training and research and development, Considering contractual provisions that would require a certain level of compensation in the event of a sudden cancellation of a development phase |
Items this document does not state (23)
Net SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesFull-year earnings forecastProgress against full-year forecastKey KPIsUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share
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.The factors cited include higher fixed costs, such as personnel expenses resulting from continued base-pay increases; higher variable costs, including outsourcing expenses, for major development projects; idle capacity caused by the temporary suspension of development for overseas clients; and a year-on-year decline in revenue sharing following the unusually high level recorded in the same period of the previous year. Measures being implemented include securing and launching new projects at an early stage, using internal resources, and allocating resources to training and research and development.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.