Dependence on the Gaming Industry and Market Volatility Risk
First written in FY2021. 4 of 11 entries say "Worsened", first in FY2026-H1. Latest entry: 2026-08-12.
The whole theme swung hardest in 2020: 29 of 92 companies on the "Worse" side.
- 2026-08-12WorsenedEarnings
「Our core existing businesses, including personnel dispatch services for game companies, were significantly affected by the trend toward a slowdown in the mobile games market.」
The slowdown in the mobile games market has concretely emerged as a factor behind lower earnings in the existing personnel dispatch business serving game companies. - FY2026RestatedAnnual report
「It is also a fact that many domestic developers continue to struggle in both mobile-focused social games and console games, owing to soaring development costs, longer development periods, and the growing presence of overseas companies in the Japanese market.」
It continues to recognize the risk of sluggish customer performance in the gaming industry, citing development costs, development periods, and the growing presence of overseas companies as factors. - FY2026-H1WorsenedAnnual report
「It is also a fact that many domestic developers continue to struggle in both mobile-focused social games and console games, owing to soaring development costs, longer development periods, and the growing presence of overseas companies in the Japanese market.」
Regarding market volatility risk in the gaming industry, it cites rising development costs, longer development periods, and the growing presence of overseas companies as factors, and states that domestic developers continue to struggle in both mobile and console games. - FY2025-H1MaterialisedAnnual report
「Although the performance of gaming companies remains sluggish, the Company continues efforts to increase the number of personnel assigned to its core staffing business serving gaming companies, not only by developing new clients but also by further deepening relationships with existing clients.」
Previously, the potential impact of deteriorating gaming industry market trends was described as a possibility. This time, the sluggish performance of gaming companies and the decline in the number of the Company's creators assigned to clients are described as the actual business environment. - FY2024ReframedAnnual report
「The domestic employment environment, which underpins the overall Group's human resources business, remained generally steady in February 2024. The seasonally adjusted unemployment rate was 2.6% (2.6% in the same month of the previous year and 2.4% in the previous month), the seasonally adjusted active job openings-to-applicants ratio was 1.26 (1.34 in the same month of the previous year and 1.27 in the previous month), and the seasonally adjusted ratio of new job openings to applicants was 2.26 (2.32 in the same month of the previous year and 2.28 in the previous month).」
In addition to the previously disclosed risk of dependence on the gaming industry, the Company now describes the employment environment underlying the overall human resources business, including recruitment services and job media, following the merger. - FY2023RestatedAnnual report
「However, if significant changes occur in gaming industry market trends and the performance of the Company's clients deteriorates, the Group's business and performance may be affected. Accordingly, the Company intends to respond by expanding the scope of its staffing business into adjacent fields of the gaming industry, including IT and web services, video distribution, live streaming, AR and VR, and metaverse-related businesses.」
It reconfirms the risk of dependence on the gaming industry and the response of expanding into IT and web services, video distribution, live streaming, AR and VR, metaverse-related businesses, and other fields. - FY2022RestatedAnnual report
「The Group's core staffing business mainly serves companies in the entertainment industry, particularly the gaming industry, as clients, and sales have been expanding steadily, supported by the recent growth of the online gaming industry. However, if significant changes occur in gaming industry market trends and the performance of the Company's clients deteriorates, the Group's business and performance may be affected.」
It reconfirms the structure in which the gaming industry is the main customer base and the risk of an impact on performance when market conditions fluctuate. - FY2021First statedAnnual report
「The Group's core staffing business mainly serves companies in the entertainment industry, particularly the gaming industry, as clients, and sales have been expanding steadily, supported by the recent growth of the online gaming industry. However, if significant changes occur in gaming industry market trends and the performance of the Company's clients deteriorates, the Group's business and performance may be affected.」
It identifies the concentration of major customers in the gaming industry and the potential impact on performance if that market deteriorates as risks.