Major Rework and Losses in the Development of a Large-Scale Smartphone Game
First written in FY2016-Q3. 6 of 14 entries say "Mitigated", first in FY2022-Q3. Latest entry: FY2025-H1.
Tose moved to the "Worse" side of this theme in 2016, 7 years before the typical company in this theme (2023).
The whole theme swung hardest in 2024: 17 of 55 companies on the "Worse" side.
23 other companies' latest entry also says "Mitigated".
- FY2025-H1MitigatedAnnual report
「Although substantial losses were incurred due to two development problems in the same period of the previous year, their impact did not affect the current interim consolidated accounting period at all. In addition, most of the major development projects have proceeded generally smoothly and are performing with profitability slightly above expectations.」
The Group explained that the losses caused by two development problems in the same period of the previous year had no impact on the current interim consolidated accounting period and that the major projects were generally progressing smoothly. - FY2024MaterialisedAnnual report
「During development of a smartphone game, a major expansion of the server-side system became necessary, resulting in associated rework on some tasks. Although delivery to the customer was almost complete as of the end of the current consolidated fiscal year, the substantial extension of the development schedule beyond the initial plan prevented work from starting on other projects and reduced development revenue.」
The server expansion, rework, and substantial extension of the development schedule actually occurred, leading to delays in starting other projects and a decline in development revenue. - FY2024-Q3RestatedAnnual report
「Meanwhile, as reported in the second-quarter report, development of the smartphone game project, in which a major server expansion and associated rework on some tasks became necessary during development, is continuing toward delivery during the current consolidated fiscal year. Because the development schedule is behind the initial plan, development revenue declined.」
Development of the smartphone game project affected by the server expansion and rework is continuing toward delivery, but the schedule is behind the initial plan, leading to a decline in development revenue. - FY2024-Q2MaterialisedAnnual report
「Meanwhile, in a smartphone game project under development, a major expansion of the server became necessary during development, resulting in associated rework. Development costs consequently increased substantially, and the development schedule has been delayed.」
A major server expansion and associated rework actually occurred in a smartphone game project, leading to higher development costs and schedule delays. The existing risk of extensive rework and cost overruns has materialized again. - FY2023MitigatedAnnual report
「The profitability of development operations improved as a result of measures including improvements to the structure of the development team that experienced development problems in the previous consolidated fiscal year.」
The Group explained that the profitability of development operations improved after the structure of the team that experienced development problems in the previous fiscal year was improved. - FY2023-Q3MitigatedAnnual report
「However, the positive impact of profit-enhancing factors, including improved profit margins resulting from higher consideration for game software-related projects and the prevention of cost increases caused by development problems, outweighed the negative factors,」
The Group explained that it has been able to prevent cost increases caused by development problems and continues to report the effectiveness of measures addressing the risk of cost overruns associated with such problems. - FY2023-Q2MitigatedAnnual report
「Although development defect remediation work for mobile content-related projects exceeded expectations in the same period of the previous year, increasing development costs, no major cost overruns caused by problems occurred during the cumulative second-quarter consolidated period as the Group had been strengthening project management.」
The Group explained that, unlike the defect remediation and higher costs incurred in the same period of the previous year, no major cost overruns caused by problems occurred during the current quarter. - FY2022MitigatedAnnual report
「In terms of profit, large-scale rework for a smartphone game was required in the previous consolidated fiscal year, but this declined in the current consolidated fiscal year.」
The large-scale rework for a smartphone game incurred in the previous fiscal year declined in the current fiscal year, contributing to improved profitability. - FY2022-Q3MitigatedAnnual report
「In terms of profit, large-scale rework costs were incurred for a smartphone game in the same period of the previous year, but those costs declined in the current period. In addition, improvements in transaction prices and development efficiency led to a recovery in the gross profit margin. Operating profit was ¥264 million, up 142.9% year on year; ordinary profit was ¥280 million, up 138.4%; and net income attributable to owners of the parent was ¥169 million, up 532.6%.」
Large-scale rework costs for a smartphone game incurred in the same period of the previous year declined in the current period, while improved transaction prices and more efficient development also contributed to a recovery in profitability. - FY2022-Q2WorsenedAnnual report
「The second-quarter earnings forecast announced on 13 October 2021 was not achieved, mainly because development costs increased during the current fiscal year as more development work than anticipated was required to correct development defects in the smartphone game project that had incurred cost overruns in the previous fiscal year.」
In the smartphone game project that had experienced cost overruns in the previous fiscal year, more defect-correction work than expected was required again during the current fiscal year, increasing development costs and resulting in the second-quarter earnings forecast being missed. - FY2021MaterialisedAnnual report
「In terms of profit, in a smartphone game development project, it became necessary to rework deliverables produced through the middle stage of development, and, in addition to the costs incurred in addressing the project and the completion date being pushed into the following fiscal year,」
Rework of deliverables, costs incurred to address the issue, and the project completion date being pushed into the following fiscal year all occurred in the fiscal year under review. - FY2021-Q3MaterialisedAnnual report
「In a smartphone game development project, it became necessary to substantially rework deliverables produced through the middle stage of development from the final stage onward, and, in addition to the costs incurred in addressing the project,」
In smartphone game development, it became necessary to substantially rework deliverables from the final stage onward, resulting in costs to address the issue. The risk of extensive rework in existing major game development projects has materialized again. - FY2016MaterialisedAnnual report
「The large-scale smartphone game development project described above became a loss-making project, and substantial costs were recorded. As a result, gross profit declined and operating profit was ¥259 million, down 50.0% from the previous consolidated fiscal year.」
The large-scale smartphone game project became loss-making, resulting in substantial cost recognition and a decline in profit. - FY2016-Q3First statedAnnual report
「In a large-scale smartphone game development project, it became necessary to substantially rework deliverables produced during the early stages of development after the midpoint of the project. The project required the deployment of a large number of additional personnel, among other factors,」
Substantial rework of early-stage deliverables and the deployment of additional personnel actually occurred, reducing profit through cost recognition and constraining the acceptance of new projects.