Expansion of Mobile Development and Operations Driven by Demand for Smartphone Development

「Smartphone-related development revenue declined from the same period of the previous year because, amid intense market competition, new development is currently being prioritized for home video game consoles. Revenue from operations also remained below the level recorded in the same period of the previous year, partly because all of the operated titles had been available for more than 5 years.」

「In the smartphone-related business, the company continued to operate multiple smartphone games, and total operations remained slightly above the level recorded in the same period of the previous year. Meanwhile, competition in the smartphone game market remained intense, and new development requests were being prioritized for home video game consoles, resulting in lower development revenue than in the same period of the previous year. As a result, revenue was ¥672 million, down 3.0% year on year.」

「At a large ongoing project, the addition of stories and events and the implementation of measures to address substantial processing loads resulted in total operations revenue, including revenue sharing, exceeding the previous year's level. Meanwhile, a major upgrade to the server-side system became necessary during smartphone game development, resulting in rework on some tasks.」

「In the mobile content business, ongoing projects continued to perform above the level recorded in the same period of the previous year. Meanwhile, as reported in the second-quarter report, development revenue declined because a smartphone game development project that required a major server upgrade during development, along with related rework, was delayed beyond the initial schedule as development continued toward delivery during the current consolidated fiscal year. As a result, revenue was ¥1.1 billion, down 20.2% year on year.」

「In the mobile content business, the ongoing operations services remained solid, and operations and royalty revenue continued to exceed the level recorded in the same period of the previous year. Meanwhile, a smartphone game development project required a major server upgrade during development, which also resulted in rework, substantially increasing development costs and delaying the development schedule. As a result, revenue was ¥753 million, down 15.7% year on year.」

「In the mobile content business, the ongoing operations services remained solid, and operations revenue increased from the same period of the previous year. Meanwhile, although the company is also working on new smartphone game development projects, both the number and scale of projects were smaller than in the same period of the previous year, resulting in lower development revenue. As a result, revenue was ¥406 million, down 9.5% year on year.」

「Among the mobile content-related operations, the services we continue to provide remained solid as a result of strategic management, including the launch of products developed in collaboration with well-known IPs and new products, as well as anniversary events.」

「The outsourced operations services we continue to provide have remained solid, and multiple new development projects are also underway.」

「Outsourced operations continued to progress steadily, and multiple new development projects were also under way. However, development revenue declined because of the negative impact of the reversal from the previous year, when revenue from a large development project that was subsequently cancelled had been recognized. As a result, revenue was ¥894 million, down 5.0% year on year.」

「Operations provided on an outsourced basis continued to progress steadily. Meanwhile, the smartphone game market remains difficult for new games to enter because of the large number of titles available, and development revenue declined as negotiations for new development projects were pursued cautiously. As a result, revenue was ¥449 million, down 6.6% year on year.」

「Revenue from operations declined during the current consolidated fiscal year because operations for 2 large games ended during the previous consolidated fiscal year. As a result, revenue was ¥1,944 million, down 9.9% from the previous consolidated fiscal year.」

「Revenue related to mobile content was ¥1,466 million, as operating revenue declined from the same period of the previous year, down 9.9% year on year.」

「Revenue related to mobile content was ¥941 million, as operating revenue declined from the same period of the previous year, down 16.1% year on year.」

「Revenue related to mobile content was ¥481 million, as operating revenue declined from the same period of the previous year, when it was ¥510 million.」

「As described above, revenue related to mobile content was ¥2,159 million, down 24.9% from the previous consolidated fiscal year. Operating revenue from smartphone games remained solid, but customer consultations and inquiries regarding development work increased more in game software than in mobile content, and the number of development projects declined from the previous fiscal year.」

「Revenue related to mobile content was ¥1,627 million, down 12.4% year on year. Operating revenue progressed favorably as operations for a large smartphone game continued steadily, but consultations and inquiries from customers regarding development work declined in mobile content even as they increased in game software, and development project completions also decreased from the same period of the previous year.」

「Revenue related to mobile content was ¥1,122 million, down 9.7% year on year. Operating revenue progressed favorably as operations for a large smartphone game continued steadily, but development project completions declined from the same period of the previous year, partly because customers remained cautious about launching new titles, as described in (1) above.」

「Revenue related to mobile content was ¥510 million, down 0.4% year on year, as royalty revenue increased for some smartphone games and operations for a large smartphone game continued steadily.」

「As the scale of operations for smartphone games outsourced to the Group, primarily in the Digital Entertainment business, became larger than initially expected at customers’ request, operating revenue from smartphone games progressed favorably, and」

「As described in 2. (1) above, revenue related to mobile content was ¥1,857 million, as smartphone development revenue and operating revenue progressed favorably, up 36.7% year on year.」

「As described in 2. (1) above, revenue related to mobile content was ¥1,242 million, as smartphone development revenue and royalty revenue progressed favorably, up 25.8% year on year.」

「Revenue related to mobile content was ¥512 million, as smartphone development revenue progressed favorably, up 30.2% year on year.」

「Revenue related to mobile content was ¥2,264 million, up 3.5% from the previous consolidated fiscal year. In response to intensifying competition in Japan’s smartphone game market, operations ended or were scaled back in some projects at customers’ request, but this was offset by the generally smooth completion of large smartphone game projects.」

「Revenue related to mobile content was ¥1,358 million. Although royalty revenue increased, operating revenue was scaled back in some projects at customers’ request, among other factors, resulting in a 12.2% year-on-year decrease.」

「Revenue related to mobile content was ¥987 million. Although royalty revenue increased for some smartphone games, operating revenue declined from the same quarter of the previous year, resulting in a 7.5% year-on-year decrease.」

「Revenue related to mobile content was ¥393 million. Although operating revenue increased following the steady execution of operations for multiple smartphone games, development revenue decreased from the same quarter of the previous year, down 20.4% year on year.」

「Revenue related to mobile content was ¥2,188 million, as operating revenue increased substantially following the steady execution of operations for multiple smartphone games, up 7.7% from the previous consolidated fiscal year.」

「Revenue related to mobile content was ¥1,547 million, as operating revenue increased substantially following the steady execution of operations for multiple smartphone games, up 17.4% year on year.」

「Revenue related to mobile content was ¥1,067 million, as operating revenue increased substantially following the steady execution of operations for multiple smartphone games, up 71.9% year on year.」

「Revenue related to mobile content was ¥494 million, as operating revenue increased substantially following the steady execution of operations for smartphone games, up 58.1% year on year.」

「Revenue related to mobile content was ¥2,032 million, as development revenue increased after the completion of development on large titles using strong IP, including intellectual property, for smartphone game projects, up 30.1% from the previous consolidated fiscal year.」

「Revenue related to mobile content was ¥1,318 million, as development revenue increased against a backdrop of larger and more sophisticated smartphone games, up 43.2% year on year.」

「Revenue related to mobile content was ¥620 million, as development revenue increased against a backdrop of larger and more sophisticated smartphone games, up 10.8% year on year.」

「Revenue related to mobile content was ¥313 million, as development revenue increased against a backdrop of larger and more sophisticated smartphone games, up 26.1% year on year.」

「In the mobile development business, development revenue was ¥449 million. This reflected the successful completion as planned of a large smartphone project ordered in the previous consolidated fiscal year and an increase from the initial development budget for additional development projects involving some content completed in prior fiscal years, despite some new projects not leading to orders. Operating revenue was ¥552 million, reflecting the generally smooth progress of existing projects and the start of operations for a large smartphone project.」

「In the mobile development business, strong demand for smartphone content enabled us to complete on schedule a large smartphone project received in the previous fiscal year. In addition, development revenue reached ¥381 million because development costs for certain additional development projects involving content completed in prior fiscal years increased from the initial estimates. Operating revenue was ¥412 million, as existing projects progressed generally smoothly and a large smartphone project that began operations in the second quarter also performed well.」