Downside Risk to Royalty Revenue from Large-Scale Revenue-Sharing Projects
First written in FY2017-Q2. 6 of 14 entries say "Materialised", first in FY2017-Q2. Latest entry: 2026-10-26.
No other company in this theme has enough history to compare yet.
- FY2026-H1MaterialisedAnnual report
「Revenue sharing decreased from the same period of the previous year for both home video game console and PC-related products and smartphone-related products, although」
The Company stated that revenue sharing decreased from the same period of the previous year for both home video game console and PC-related products and smartphone-related products. However, segment profit increased because development of home video game console and PC-related products progressed and profitability was favorable. - FY2024MaterialisedAnnual report
「Although recovery of the consideration for this additional work is expected to remain limited to partial recovery through future revenue sharing, meaning success-based compensation linked to software sales, the substantial increase in development costs resulted in a significant loss.」
While recovery through revenue sharing is limited to partial recovery expected in the future, the substantial increase in development costs resulted in a significant actual loss. - FY2024-Q3MitigatedAnnual report
「Following negotiations with the customer, it was agreed that part of the additional work would be recovered through future revenue sharing.」
Following negotiations with the customer, it was agreed that part of the additional work resulting from the substantial increase in development requirements would be recovered through future revenue sharing. - FY2018-Q2MitigatedAnnual report
「In terms of profit, in addition to the increase in sales, gross profit rose significantly because, although there were projects in the same period of the previous year in which the Company bore part of the development costs and recovered those costs through royalty revenue, there were no such projects during the six-month period ended in the second quarter of the current fiscal year, resulting in operating profit of ¥91 million, compared with an operating loss of ¥54 million in the same period of the previous year」
During the six-month period ended in the second quarter of the current fiscal year, there were no projects in which the Company bore development costs and recovered them through royalty revenue, improving operating performance from an operating loss in the same period of the previous year to operating profit of ¥91 million. - FY2018-Q1MaterialisedAnnual report
「As a result, although net sales in this business were ¥667 million, up 36.1% year on year, the impact of lower royalty revenue, mainly related to game software, resulted in an operating loss of ¥7 million, compared with an operating loss of ¥5 million in the same period of the previous year.」
Royalty revenue, mainly related to game software, decreased, resulting in an operating loss of ¥7 million in the Digital Entertainment business. - FY2017-Q3RestatedAnnual report
「In terms of profit, royalty revenue from a large project for home video game consoles, which used a revenue-sharing model under which the Company bore part of the development costs and recovered those costs through royalty revenue, fell below expectations. As a result, operating profit was ¥39 million, down 70.9% year on year.」
The Company continues to report that royalty revenue remains below expectations for a large revenue-sharing project for home video game consoles. - FY2017-Q2MaterialisedAnnual report
「In terms of profit, royalty revenue from a large project for home video game consoles, which used a revenue-sharing model under which the Company bore part of the development costs and recovered those costs through royalty revenue, fell below expectations. As a result, the Company reported an operating loss of ¥54 million, compared with operating profit of ¥72 million in the same quarter of the previous year.」
In a large revenue-sharing project for home video game consoles, under which development costs were borne and recovered through royalty revenue, royalty revenue fell below expectations, resulting in an operating loss.