Shortage of Market-Driving Hit Products and Investment Losses on In-House Works
First written in FY2017-Q1. 14 of 37 entries say "Mitigated", first in FY2018-Q1. Latest entry: 2026-09-28.
0 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「In addition to the strong performance of the Toys and Amusement businesses, substantial growth in the Video Games business driven by hit products resulted in significant increases in both net sales and profit from the previous fiscal year.」
Strong performance in Toys, Amusement and Video Games mitigated the impact of the shortage of hit products on company-wide results for the full year. - FY2026-H1MitigatedAnnual report
「The Video Games business grew on the strength of hit products, resulting in substantial year-on-year increases in both net sales and profit.」
Hit products drove results in the Video Games business, mitigating the risk of weaker performance due to a shortage of hit products during the interim period. - FY2025WorsenedAnnual report
「Although there were hit products such as Snow Man's album "THE BEST 2020-2025," they did not become market-driving hits, and net sales fell below the previous fiscal year.」
Although the Visual and Music business had hit products, they were not enough to drive the market, while software sales struggled in Video Games. By contrast, hit products and market expansion in Toys and Amusement boosted results, resulting in mixed performance across the businesses. - FY2025-H1Mixed performance across businesses amid a shortage of hit productsAnnual report
「In the Video Games business, net sales fell below the same period of the previous year because sales of game hardware remained weak and there were no hit software products capable of driving the market.」
While strong products in Toys and Amusement drove results, Video Games had no hit products capable of driving the market, resulting in mixed performance across the businesses. - FY2024-Q3MitigatedAnnual report
「The Toys and Amusement businesses continued to perform well by capitalizing on hit products and market expansion, resulting in substantial year-on-year increases in both net sales and profit.」
Hit products and market expansion in the Toys and Amusement businesses drove results, mitigating the company-wide impact of the shortage of hit products on cumulative results for the quarter. - FY2024-Q2MitigatedAnnual report
「In addition to the continued strong performance of the Toys and Amusement businesses, hit products in the Video Games business resulted in substantial year-on-year increases in both net sales and profit.」
Strong performance in Toys and Amusement and hit products in Video Games mitigated the impact of the shortage of hit products on company-wide results during the quarter. - FY2024-Q1MitigatedAnnual report
「Sales of lottery products, including BANDAI SPIRITS' "Ichiban Kuji," and trading cards such as the "Pokémon Trading Card Game" continued to perform well. Sales of hobby products, including "Gundam series" plastic models, also increased, resulting in substantial year-on-year increases in both net sales and profit. In addition, hit products such as "The Legend of Zelda: Tears of the Kingdom" and "Final Fantasy XVI" resulted in substantial year-on-year increases in both net sales and profit.」
Multiple hit products in the Toys and Video Games businesses drove results, mitigating the risk of weaker performance in both businesses due to a shortage of hit products. - FY2023Two businesses performed well while Visual and Music and Video Games struggledAnnual report
「Against this backdrop, although the Visual and Music business incurred a loss, the Group's results exceeded the previous fiscal year in both net sales and profit, as the Toys and Amusement businesses continued to perform well.」
For the full year, the Toys and Amusement businesses performed well, while the Visual and Music business posted a loss and the Video Games business also recorded lower net sales and profit, resulting in mixed performance across the businesses. - FY2023-Q3Strong performance in 3 businesses coexisting with a lack of hits and investment losses in the visual and music businessAnnual report
「Against this backdrop, the Group's results exceeded the same period of the previous year in both net sales and profit, as the Toys, Video Games and Amusement businesses continued to perform well. In the Visual and Music business, net sales fell below the same period of the previous year because there were no major hit products, and sales of packaged visual media in particular struggled. Profit also fell significantly below the previous year due to valuation losses on slow-moving inventory and investment losses on visual content in which the Company had invested.」
The Toys, Video Games and Amusement businesses continued to perform well, while the Visual and Music business faced a shortage of major hit products, weak packaged visual media sales, valuation losses on slow-moving inventory and content investment losses. - FY2023-Q2WorsenedAnnual report
「In the visual and music business, revenue and profit both fell below the levels of the same period of the previous year due to the lack of major hit products compared with that period, valuation losses on slow-moving inventory, and investment losses on works resulting from the weak theatrical performance of visual works financed by the company.」
In the visual and music business, revenue fell 2.6% and segment profit fell 61.4% due to the lack of major hit products, together with valuation losses on slow-moving inventory and investment losses on works. The business shifted from a situation in which revenue growth coexisted with losses to one in which both revenue and profit fell below the levels of the same period of the previous year. - FY2023-Q1Visual and music revenue growth coexisting with lossesAnnual report
「In the visual and music business, revenue exceeded the level of the same period of the previous year due to strong sales of new packaged releases such as "Snow Man LIVE TOUR 2021 Mania" and growth in overseas sales of animation works financed by the company in the visual manufacturing division. Profit fell below the level of the same period of the previous year because valuation losses were recognized on slow-moving inventory and investment losses were recognized on visual works financed by the company.」
Revenue in the visual and music business increased due to sales of new releases and overseas sales of animation works financed by the company, while valuation losses on slow-moving inventory and investment losses on visual works were recognized, resulting in profit falling below the level of the same period of the previous year. - FY2022Strong performance in some businesses coexisting with visual investment lossesAnnual report
「Revenue and profit both significantly exceeded the previous fiscal year due to strong performance in the toy and amusement businesses and hit products in the video game business. In the visual and music business, sales of new packaged releases performed well, but the business was affected by the decline from the previous fiscal year's strong sales of older releases, which had benefited from stay-at-home demand, and by investment losses on visual works financed by the company resulting from theater seating restrictions」
While the impact of hits was evident in toys, amusement and video games, the visual and music business saw strong sales of new releases coexist with a decline from the previous year's strong sales of older releases and investment losses on visual works financed by the company. - FY2022-Q3Strong performance in some businesses coexisting with visual investment lossesAnnual report
「In the visual and music business, revenue exceeded the level of the same period of the previous year due to recovery from the impact of the COVID-19 pandemic in that period and strong performance by packaged works under the company's exclusive distribution, including the anime Uma Yon Blu-ray BOX. Profit, however, fell below the level of the same period of the previous year because investment losses were recognized on visual works financed by the company.」
Revenue in the visual and music business recovered on strong performance by packaged works under exclusive distribution, while investment losses were recognized on visual works financed by the company, resulting in divergent performance by business area and in terms of profit. - FY2022-Q2Differentiation in the impact of hits by business areaAnnual report
「Revenue and profit both significantly exceeded the levels of the same period of the previous year due to hit products in the toy business and strong sales of capsule toys in the amusement business. / In the video game business, demand for hardware such as PlayStation 5 remained strong, but revenue and profit both fell below the levels of the same period of the previous year because the market lacked hit products capable of driving the overall market compared with the previous year, when both game hardware and software performed well on stay-at-home demand.」
Hit products and capsule toys lifted results in the toy and amusement businesses, while the video game business had no hit products capable of driving the overall market, with differences by business area continuing. - FY2022-Q1Differentiation in the impact of hits by business areaAnnual report
「In the toy business, revenue and profit both significantly exceeded the levels of the same period of the previous year, reflecting recovery from the impact of commercial facility closures and reduced operating hours in the same period of the previous year, as well as strong performance by BANDAI SPIRITS' Ichiban Kuji-related products, convenience-store products such as Pokémon Card Game, and products related to Demon Slayer: Kimetsu no Yaiba and Jujutsu Kaisen.」
The toy business posted significant revenue and profit growth on multiple hit products, easing the downward pressure on results from a lack of hit products in that area. Meanwhile, hardware and software were soft in the video game business, resulting in divergent conditions by business area. - FY2021MaterialisedAnnual report
「Although the company worked to control selling, general and administrative expenses, profit fell below the previous fiscal year because investment losses on visual works financed by the company were recognized after their theatrical performance deteriorated due to theater closures and seating restrictions.」
The risk of poor recovery of investments in proprietary and financed works materialized, with investment losses on visual works resulting from theater closures and seating restrictions weighing on segment profit in the visual and music business. - FY2021-Q3MitigatedAnnual report
「Net sales and profit significantly exceeded those of the same period of the previous year, owing in part to hit products in the toy and video game businesses and a reduction in inventory valuation losses resulting from the maintenance of appropriate inventory levels.」
Hit products in toys and video games eased the situation in which a lack of hit products was weighing on company-wide results, with revenue and profit both significantly exceeding the levels of the same period of the previous year. - FY2021-Q2Differentiation in the impact of hits by business areaAnnual report
「In the video game business, Nintendo Switch-related hardware and related software such as Animal Crossing: New Horizons continued to perform strongly on stay-at-home demand. Sales of the company's original game accessories also grew, resulting in revenue and profit both significantly exceeding the levels of the same period of the previous year.」
The video game business posted significant revenue and profit growth on stay-at-home demand and multiple hit products, while some hits in the visual and music business were not enough to offset its previous decline, making the differences by business area more pronounced. - FY2021-Q1MitigatedAnnual report
「In the video game business, the overall market remained strong on stay-at-home demand. In addition to hits among Nintendo Switch-related hardware and related software such as Animal Crossing: New Horizons, PlayStation 4-related software also remained solid, resulting in revenue and profit both significantly exceeding the levels of the same period of the previous year. As a result, revenue was ¥16.856 billion, up 125.9% year on year, and segment profit was ¥236 million, up 1,168.4%.」
Hits among Nintendo Switch-related products and titles such as Animal Crossing: New Horizons eased the downward pressure on results from a lack of hit products in the video game area, resulting in significant revenue and profit growth. - FY2020-Q3WorsenedAnnual report
「In the visual and music business, revenue and profit fell below the levels of the same period of the previous year because the company had no major hit products, the overall packaged market remained in a difficult environment compared with the strong performance in the same period of the previous year, and works financed by the company in the manufacturing division performed poorly.」
The visual and music business had no major hit products, while works financed by the manufacturing division also performed poorly, resulting in revenue and profit falling below the levels of the same period of the previous year. The impact of a lack of hit products is evident across multiple areas. - FY2020-Q2RestatedAnnual report
「Although the packaged version of the exclusively distributed drama Tonbo performed well, the company lacked a major hit product capable of driving the market, and revenue and profit remained sluggish compared with the strong performance in the same period of the previous year.」
While the exclusively distributed title Tonbo performed well, the visual and music business had no major hit products capable of driving the market, resulting in lower revenue and profit year on year. The lack of hit products has continued. - FY2020-Q1WorsenedAnnual report
「Revenue and profit both fell below the levels of the same period of the previous year because there were no hit products capable of driving results and selling, general and administrative expenses, including logistics costs, increased.」
Company-wide, the lack of hit products capable of driving results was explicitly identified as a factor behind lower revenue and profit. Meanwhile, several toy products and albums and anime productions in the visual and music business performed well, with strong and weak performance coexisting across business areas. - FY2019Hit products and underperforming products coexistingAnnual report
「Although Nintendo Switch hardware and related software such as Super Smash Bros. Ultimate, as well as PlayStation 4-related software under the company's exclusive distribution, performed well, they were not enough to offset the decline in portable game console hardware and software, resulting in revenue and profit falling below the previous fiscal year.」
For the year, hit products such as Nintendo Switch and products under exclusive distribution performed well, while the decline in portable game consoles persisted, with strong and weak performance coexisting across business areas. - FY2019-Q3Hit products and underperforming products coexistingAnnual report
「In the visual and music business, revenue and profit significantly exceeded the levels of the same period of the previous year, reflecting the acquisition of Seikodo Co., Ltd.'s wholesale business for packaged music and video products and the resulting expansion of the company's share of intermediate distribution, as well as hit products such as Namie Amuro's "namie amuro Final Tour 2018 ～Finally～" and operational improvements at a subsidiary.」
The visual and music business improved on hit products and operational improvements following the acquisition of the Seikodo business, while the video game business posted lower revenue and profit due to weak performance by portable game consoles, resulting in divergent conditions across business areas. - FY2019-Q2WorsenedAnnual report
「In the video game business, Nintendo Switch hardware and software remained solid, but revenue and profit were sluggish because the company did not have major hit products comparable to those of the same period of the previous year.」
Nintendo Switch remained solid, but the shortage of major hit products compared with the same period of the previous year resulted in weak revenue and profit in the video game business. This contrasts with the improvement in the visual and music business driven by hit products. - FY2019-Q1MitigatedAnnual report
「Although the video game market has remained strong, driven by some hit products」
Some hit products have driven the video game market, which has remained strong, and the situation in which a lack of hit products was weighing on results has continued to ease in the video game area. - FY2018-Q3MitigatedAnnual report
「Under these conditions, the group's revenue and profit both significantly exceeded the levels of the same period of the previous year, as Nintendo Switch hardware and related software performed well in the video game business and there were some hit products in the visual and music business.」
Nintendo Switch hardware and related software, together with hit visual and music products, continued to ease the situation in which a lack of hit products was weighing on company-wide results, resulting in significant year-on-year revenue and profit growth. - FY2018-Q2MitigatedAnnual report
「Under these conditions, the group's revenue and profit both significantly exceeded the levels of the same period of the previous year, as Nintendo's Nintendo Switch and related software performed well in the video game business and there were some hit products in the visual and music business.」
The company explained that hit products including Nintendo Switch and related software, as well as visual and music products, further eased the situation in which a lack of hit products was weighing on company-wide results. - FY2018-Q1MitigatedAnnual report
「The group's revenue and profit both exceeded the levels of the same period of the previous year, due to strong performance in the video game business and a hit among proprietary productions handled by the company in the visual and music business.」
The strong video game business and a hit among the company's proprietary productions handled in the visual and music business partly eased the situation in which a lack of hit products was weighing on company-wide results. Meanwhile, toys and amusement had not yet reached the point of driving the overall market. - FY2017Reassessment of full-year earnings factorsAnnual report
「The company struggled in revenue because it had no major hit products. In terms of profit, operating profit exceeded the previous fiscal year as reduced inventory disposal resulting from efforts to maintain appropriate inventory levels, together with increased sales of high-margin works under exclusive distribution agreements, helped earnings. However, ordinary profit and net income attributable to owners of the parent fell below the previous fiscal year due to the recognition of equity-method investment losses and other factors.」
For the full year, the lack of hit products weighed on revenue, while lower inventory disposal and works under exclusive distribution agreements lifted operating profit. The downward pressure on profit from investment losses on proprietary works and equity-method investment losses also continued. - FY2017-Q3Improvement in earnings factors and recognition of equity-method lossesAnnual report
「Although revenue remained below the level of the same period of the previous year, profit improved as efforts to reduce inventories lowered inventory disposal losses. In addition, strong performance by high-margin works under exclusive distribution agreements and proprietary works resulted in operating profit exceeding the level of the same period of the previous year. Ordinary profit and quarterly net income attributable to owners of the parent fell below the level of the same period of the previous year due to the recognition of equity-method investment losses and other factors.」
In contrast to the previous lack of hits and weak performance by proprietary works, works under exclusive distribution agreements and proprietary works performed well, while inventory disposal also declined. Meanwhile, equity-method investment losses were recognized, weighing on ordinary profit and quarterly net income. - FY2017-Q2Changes in conditions by business areaAnnual report
「Although earnings in the manufacturing division were on an improving trend, the distribution division struggled in both revenue and profit because it lacked notable hit products capable of driving the market. / Profit exceeded the level of the same period of the previous year because high-margin proprietary works, mainly anime productions, performed well.」
While the distribution division continued to lack hit products capable of driving the market, high-margin proprietary works performed well in the visual and music business, with the former situation of a lack of hits and weak performance by proprietary works becoming differentiated by business area. - FY2017-Q1First statedAnnual report
「Revenue and profit remained sluggish because the distribution division had no products capable of driving the market, while the content division had no notable hits among its high-margin original products. In addition, profit fell below the level of the same period of the previous year because investment losses were recognized on certain proprietary works.」
The company attributes the weak results for the quarter to the lack of hits among products capable of driving the market and original products, as well as investment losses on certain proprietary works.