Sluggish game software sales and dependence on hit titles

「Meanwhile, the latest title in the 『DAEMON X MACHINA』 series, 『DAEMON X MACHINA TITANIC SCION』（デモンエクスマキナ タイタニックサイオン）, released in September of the same year, performed poorly, falling substantially below the initial sales plan. …As sales of the new smartphone app game 『ブラウザ三国志 天』 released during the period fell below plan, we wrote off the game asset balance in full after taking into account its future recoverability.」

「However, in addition to the poor sales of 『LOOP8』, sales of multiple new titles were substantially below expectations, and we were unable to recover the development costs, resulting in a loss.」

「However, in terms of profit, the increase in development costs and the poor performance of the all-new juvenile RPG 『LOOP8（ループエイト）』, released in the first quarter, could not be offset, resulting in higher revenue but lower profit.」

「The all-new juvenile RPG 『LOOP8（ループエイト）』 was released in Japan and Asia on 1 June 2023, in North America and Europe on 6 June, and on Steam® on 7 June. However, its sales performance fell below target.」

「The new smartphone game 『サクライグノラムス』, launched on 27 February 2023, performed substantially below expectations, and we wrote off the game asset balance in full.」

「Meanwhile, the Company determined that certain existing titles were unlikely to generate the expected earnings and carried out impairment losses.」

「Our subsidiary 株式会社ジー・モード began distributing the smartphone game app 『デジプラコレクション まるごと鉄道！』 on 10 August 2022, but it did not perform as expected.」

「We simultaneously released the all-new multiplatform game 『DEADCRAFT（デッドクラフト）』 worldwide as a download-only title on 19 May 2022. However, its sales performance fell below target.」

「As a new title, we began distributing the smartphone game app 『千銃士:Rhodoknight(ロードナイト)』 on 24 November 2021, but its contribution to revenue was limited. For existing titles, we conducted collaboration initiatives and anniversary events for long-running titles such as 『シノビマスター 閃乱カグラ NEW LINK』, 『剣と魔法のログレス いにしえの女神』 and 『ブラウザ三国志』, but sales declined due to the ageing of the titles and intensifying competition in the online market.」

「In this business, we conducted collaboration initiatives and anniversary events for long-running titles such as 『シノビマスター 閃乱カグラ NEW LINK』, 『剣と魔法のログレス いにしえの女神』 and 『ブラウザ三国志』, but sales declined due to the ageing of the titles and intensifying competition in the online market.」

「Sales of 『シノビマスター 閃乱カグラ NEW LINK』, now in its fourth year, and 『ブラウザ三国志』, now in its 13th year, also declined due to the ageing of the titles and intensifying competition in the online market.」

「The smartphone game app 『一騎当千エクストラバースト』, launched in May 2020, performed poorly, and we impaired the software assets after revising the future revenue outlook.」

「The smartphone game app 『一騎当千エクストラバースト』, launched in May, performed poorly despite an increase in new users driven by promotional effects and other factors, because the retention rate did not improve.」

「While many new titles have been released, popularity has continued to concentrate in certain hit titles, and the competitive environment has become even more intense.」

「We release a large number of game software titles, but popularity tends to be concentrated in certain titles. Series titles have less volatile sales and contribute to stabilising business performance, but if these popular titles develop defects or the market environment changes, users may leave, potentially materially affecting our group's business performance.」

「We began distributing 『ログレス物語（ストーリーズ）』 on 18 September and the China-origin bullet-hell shooting RPG 『ガール・カフェ・ガン』 on 20 September, but they failed to generate the expected revenue. In addition, after revising the future revenue outlook for some titles, we impaired the capitalised development costs.」

「In this business, 『シノビマスター 閃乱カグラ NEW LINK』, in its second year since release, continued to perform well, but sales of long-running titles, including 『剣と魔法のログレス いにしえの女神』, declined.」

「In this business, sales of major long-running titles, including 『剣と魔法のログレス いにしえの女神』, declined. Among the titles released in the previous fiscal year, 『シノビマスター 閃乱カグラ NEW LINK』 performed well, but the other new titles failed to make a sufficient contribution to revenue. For some titles, operations were transferred to other companies, and the development costs recognised by our company were written off in full.」

「Sales of major long-running titles, including 『剣と魔法のログレス いにしえの女神』, continue to decline. Among the titles released in the previous fiscal year, 『シノビマスター 閃乱カグラ NEW LINK』 performed well. However, the other new titles failed to make a sufficient contribution to revenue.」

「Sales of long-running titles, including 『剣と魔法のログレス いにしえの女神』, remained sluggish. Among the titles released in the previous fiscal year, 『シノビマスター 閃乱カグラ NEW LINK』 performed well, but the other new titles failed to contribute sufficient revenue.」

「Meanwhile, we decided to discontinue services for some unprofitable titles and to halt development of some titles that had been under development for release during the current fiscal year, expensing the respective development costs in full. Although the fourth-anniversary event for the existing flagship title 『剣と魔法のログレスいにしえの女神』 performed well, the title's overall performance was weak compared with the previous fiscal year.」

「Meanwhile, we decided to discontinue services for some unprofitable titles and expensed their development costs in full. The existing flagship title 『剣と魔法のログレス いにしえの女神』 performed poorly compared with the previous fiscal year, and advertising and promotion expenses increased due to a new television advertising campaign, although new-user acquisition remained strong.」

「The PC browser game 『天歌統一ぷろじぇくと』, launched on 17 April 2017, failed to generate revenue sufficient to put it on a stable footing. We decided to discontinue the service and expensed its development costs in full.」

「If we fail to accurately identify the needs of our increasingly diverse user base and supply software that users accept, sales may be sluggish and we may be placed at a competitive disadvantage against competitors.」

「In expanding the title into China, we determined that the service should be discontinued because we could not expect the revenue originally anticipated.」

「Sales of the new title released in April were sluggish, so we discontinued the service. We also discontinued development of some titles in development and expensed their development costs in full.」

「We launched the iOS/Android app 『スマッシュドラグーン』 on 28 April 2016, but its performance remained weak, below plan.」

「If we fail to accurately identify the needs of our increasingly diverse user base and supply software that users accept, sales may be sluggish and we may be placed at a competitive disadvantage against competitors.」