Worth reading
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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
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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&AFiscal year ending August 20267 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Full-year earnings forecastThe direction of revenue and operating profit for the fiscal year ending August 2027 is indicated, but the forecast amounts are Not disclosed
What the company explained in this material
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Questions Reasons for the significant decline in operating profit in the fiscal year ended August 2026 / Answer The decline in revenue-sharing income, increased outsourcing and spare capacity resulting from the suspension of a large-scale overseas project had an impact
- Questions Prospects for the resumption of suspended projects and their inclusion in the forecast for the fiscal year ending August 2027 / Answer There are currently no prospects for resumption, and it has not been included in the forecast. The reallocation of development capacity is largely complete
- Questions Scale and development period of the 3 new projects / Answer Each project is expected to generate cumulative revenue of at least ¥500 million by completion of development, with a development period of more than 2 years to approximately 4 years
- Questions Reasons operating profit is expected to improve despite lower revenue in the fiscal year ending August 2027 / Answer The gross profit margin is expected to improve as spare capacity is eliminated and outsourcing decreases
- Questions Outlook for revenue-sharing income / Answer No significant revenue-sharing income is expected in the fiscal year ending August 2027
- Questions Initiatives in new businesses, AI and the new office / Answer The company is moving forward with the VSP system, the use of AI, new businesses and the consolidation of its operating locations
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Increase in additional orders and outsourcing
- Decrease in revenue-sharing income
- Spare development capacity resulting from the temporary suspension of a large-scale project for an overseas client
The company identifies the factors but does not state the amount attributable to each one.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Elimination of spare development capacity, reduced outsourcing, completion of major projects and launch of new projectsNew initiatives
- Sales and rollout of the VSP system for pharmacy students
- AI-based prototyping, coding, asset management, automated playtesting and back-office process improvements
- An attempt to pursue in-house publishing
- New businesses outside gaming, including education, intellectual property and music
- IP-related collaboration with a major company from another industry
- Consolidation of operating locations at a new office building in Nagaokakyo, Kyoto Prefecture
- New project wins E through G
Market Size / Share
The smartphone game market is highly competitive, while the market for console and PC game software is described only qualitatively as buoyantOrders received and order backlog
The 3 new projects are expected to generate cumulative revenue of at least ¥500 million by completion of development. The amounts disclosed as order intake and order backlog are Not disclosedCapital expenditures
Approximately ¥5.0 billion
| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Fiscal year ending August 2026 |
| Full-year earnings forecast | The direction of revenue and operating profit for the fiscal year ending August 2027 is indicated, but the forecast amounts are Not disclosed |
| Breakdown of Factors Affecting the Change | Factors Increase in additional orders and outsourcing / Amount Not disclosed, Factors Decrease in revenue-sharing income / Amount Not disclosed, Factors Spare development capacity resulting from the temporary suspension of a large-scale project for an overseas client / Amount Not disclosed |
| Assumptions Underlying the Business Outlook | Elimination of spare development capacity, reduced outsourcing, completion of major projects and launch of new projects |
| Capital expenditures | Approximately ¥5.0 billion |
| Orders received and order backlog | The 3 new projects are expected to generate cumulative revenue of at least ¥500 million by completion of development. The amounts disclosed as order intake and order backlog are Not disclosed |
| Market Size / Share | The smartphone game market is highly competitive, while the market for console and PC game software is described only qualitatively as buoyant |
| Key points of the Q&A | Questions Reasons for the significant decline in operating profit in the fiscal year ended August 2026 / Answer The decline in revenue-sharing income, increased outsourcing and spare capacity resulting from the suspension of a large-scale overseas project had an impact, Questions Prospects for the resumption of suspended projects and their inclusion in the forecast for the fiscal year ending August 2027 / Answer There are currently no prospects for resumption, and it has not been included in the forecast. The reallocation of development capacity is largely complete, Questions Scale and development period of the 3 new projects / Answer Each project is expected to generate cumulative revenue of at least ¥500 million by completion of development, with a development period of more than 2 years to approximately 4 years, Questions Reasons operating profit is expected to improve despite lower revenue in the fiscal year ending August 2027 / Answer The gross profit margin is expected to improve as spare capacity is eliminated and outsourcing decreases, Questions Outlook for revenue-sharing income / Answer No significant revenue-sharing income is expected in the fiscal year ending August 2027, Questions Initiatives in new businesses, AI and the new office / Answer The company is moving forward with the VSP system, the use of AI, new businesses and the consolidation of its operating locations |
| New initiatives | Sales and rollout of the VSP system for pharmacy students, AI-based prototyping, coding, asset management, automated playtesting and back-office process improvements, An attempt to pursue in-house publishing, New businesses outside gaming, including education, intellectual property and music, IP-related collaboration with a major company from another industry, Consolidation of operating locations at a new office building in Nagaokakyo, Kyoto Prefecture, New project wins E through G |
Items this document does not state (21)
Net SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planSegment resultsKey KPIsUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury shares
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 company attributes the decline in operating profit to increased additional orders and outsourcing during the final stages of major development projects, lower revenue-sharing income and spare development capacity resulting from the suspension of a large-scale project for an overseas client. For the fiscal year ending August 2027, it expects the gross profit margin to improve as spare capacity is eliminated and outsourcing decreases.
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.
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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.