Increase in Game Software Revenue Following Completion of Large-Scale Home Console Projects

「Multiple major projects in the game business are entering the final stages of development. This is a demanding phase, requiring us to pursue quality within the limited time remaining while responding to unexpected additional requests, but operations progressed steadily under an appropriate management structure.」

「However, multiple development projects were discontinued or lost following changes in customers' policies and approaches to their game businesses.」

「In game software, development activities for multiple projects launched in the second half of the fiscal year ended August 2023 entered full scale, increasing their contribution to revenue and profit. However, multiple development projects were discontinued following changes in customers' policies and other factors.」

「In game software, we are working on multiple software development projects for home video game consoles, mainly large-scale multiplatform projects including PlayStation 5 and Steam. Some projects that made only a small contribution to revenue in the first quarter have gradually entered full-scale development. Meanwhile, in a project nearing the end of development, work increased sharply and the development period was extended because development requirements increased substantially while we were working with the customer to improve the game's quality.」

「In game software, we are progressing with multiple software development projects for home video game consoles. Several are large-scale projects scheduled to require several years and development costs of several billion yen. However, during the first-quarter cumulative consolidated accounting period, development revenue remained at a low level because projects still in the early development stages, where production efficiency had not yet improved sufficiently, accounted for a higher proportion than usual.」

「We progressed with multiple large-scale development projects, including development of “DRAGON QUEST MONSTERS: The Dark Prince” and “The Elusive Elf” and software development for VR game consoles.」

「As a result, revenue amounted to ¥2,828 million, up 26.1% year on year.」

「In game software, our development capacity was largely occupied by multiple software development projects for home video game consoles, while we continued to receive multiple inquiries, mainly for large-scale projects. However, allocating development resources was difficult, making it challenging to accept orders. Current projects include a large-scale project being developed for multiple platforms, a project for Nintendo Switch nearing completion, and a project for VR game consoles. They have generally progressed without any major deviations from the levels initially expected. As a result, revenue amounted to ¥1,952 million, up 30.2% year on year.」

「In game software, we are progressing with multiple software development projects for home video game consoles. Projects requiring high-end development expertise and projects with novel elements are included, and progress has generally remained in line with the levels initially expected, without any major deviations. As a result, revenue amounted to ¥1,092 million, up 37.7% year on year.」

「We steadily advanced multiple major development projects for home-console games that had continued from the previous consolidated fiscal year. Several of these titles are scheduled for release by customers in December 2022.」

「As stated in (1) above, revenue related to game software amounted to ¥2,242 million, up 7.6% year on year, as multiple major home video game software development projects were in progress.」

「As stated in (1) above, revenue related to game software amounted to ¥1,499 million, up 261.9% year on year, as multiple major home video game software development projects were in progress.」

「As stated above, sales related to game software amounted to ¥3,195 million, up 73.2% from the previous consolidated fiscal year, due to the completion of a major home video game software project compatible with a new game console and requests from customers for additional specifications to enhance entertainment value in multiple major home video game software projects.」

「As stated in (1) above, revenue related to game software amounted to ¥2,085 million, up 311.3% year on year, following the completion of a major home video game software development project.」