Delays in Game Development and Slippage in Project Deliveries and Order Acquisition
First written in FY2016. 13 of 33 entries say "Materialised", first in FY2016-Q4. Latest entry: FY2026.
NJ Holdings moved to the "Worse" side of this theme in 2016, 8 years before the typical company in this theme (2024).
The whole theme swung hardest in 2026: 4 of 9 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Although the game business incurred factors reducing operating profit and ordinary profit, including higher costs in commissioned and internally developed projects and the termination of operated titles, profit increased because overseas support services expanded in the game operations support field.」
While the expansion of overseas-related services offset some of the impact on profit, higher costs in commissioned and internally developed projects and the termination of operated titles emerged as actual factors reducing profit, indicating continued project profitability and project continuation risks. - FY2026-H1WorsenedAnnual report
「In the game segment, profit declined because costs increased in development projects due to deviations from the planned timing of outsourcing costs and other factors, and because orders for new development projects were delayed, despite a contribution to profit from the expansion of overseas support operations during the game operation phase.」
Delays in orders for new development projects continued, and costs also increased due to deviations from the planned timing of outsourcing costs and other factors. Although the expansion of overseas support operations contributed to profit, order and cost risks in development projects have materialized as factors behind the decline in profit. - FY2024MaterialisedAnnual report
「In the game segment, although orders in the fourth-quarter consolidated accounting period became thinner and were delayed, the impact on earnings from revenue declines caused by the downsizing or termination of operated titles was contained through cost controls, including outsourcing costs. Profit was secured through the recognition of revenue associated with the transfer of rights to a game title developed in-house, among other factors.」
In the fourth quarter, thinner and delayed orders in the game segment actually occurred. The company explained that the impact on profit was contained through controls over outsourcing costs and income from rights transfers. - FY2024-Q3RestatedAnnual report
「It is not easy to secure new projects promptly after a cancellation becomes apparent, and sales activities must be pursued while taking into account the risk of development cancellations and other factors.」
The company continues to disclose the difficulty of moving to new projects after a project is cancelled during development and the need for sales activities that take development cancellation risk into account. - FY2024-Q2Formalization of the sales structure and project evaluationAnnual report
「Previously, our group had project leaders handle everything from securing projects through development management in an integrated manner. In light of these changes in the operating environment, and given that project leaders were devoting much of their time to development while also pursuing new projects in parallel, we established a structure from around the fourth quarter of the previous fiscal year, ended June 2023, under which additional personnel could focus exclusively on sales.」
In response to the risks of excess personnel and delivery delays caused by project cancellations during development or postponed order timing, the company has specified measures including securing dedicated sales staff, assessing order probability and timing, evaluating losses from idle personnel, and reallocating personnel. The risks themselves continue to persist. - FY2024-Q1WorsenedAnnual report
「However, it is not easy to secure new projects promptly after a cancellation becomes apparent, and sales activities must be pursued while taking into account the risk of development cancellations and other factors.」
The difficulty of moving promptly to new projects after a development cancellation and the need to conduct sales activities on the assumption that development cancellations may occur were explicitly stated. - FY2023-Q3No significant cost increase occurred, but margin pressure continuedAnnual report
「In the development business, profit declined due to lower margins accompanying an increase in total estimated costs and a gradual decline in operating revenue, although no significant cost increase like that in the previous fiscal year occurred.」
While no significant cost increase like that in the previous fiscal year occurred, margin pressure from higher total estimated costs continued, leaving earnings pressure in the development business. - FY2023-Q2WorsenedAnnual report
「In the development business, revenue declined due to the delayed recovery in personnel utilization linked to earnings, as many new development projects were small or short-term, and due to a lower progress rate resulting from an increase in total estimated costs.」
The increase in small and short-term projects, the delayed recovery in personnel utilization, and the lower progress rate resulting from higher total estimated costs have materialized as a decline in game segment earnings. - FY2022WorsenedAnnual report
「Revenue fell substantially short of plan and declined, as the expected order value could not be secured due to the cancellation or completion of development projects, development delays and other factors, while orders for new development projects also failed to progress.」
The cancellation or completion of development projects, development delays, the failure to secure expected order value, and sluggish orders for new projects occurred throughout the year. Game segment revenue declined 13.3%, and the segment loss was ¥609 million. - FY2022-Q3WorsenedAnnual report
「Revenue fell substantially short of plan and declined, as the expected order value could not be secured due to the cancellation or completion of development projects, development delays and other factors.」
The cancellation or completion of development projects, development delays, and the failure to secure expected order value occurred simultaneously, causing game segment revenue to fall substantially short of plan. The segment loss also widened to ¥421 million. - FY2022-Q2MaterialisedAnnual report
「Revenue fell substantially short of the original order forecast and declined, as the expected order value could not be secured due to the cancellation of a development project, revisions to and delays in the development plan, and other factors.」
The cancellation of a development project, revisions to and delays in the development plan, and the failure to secure expected order value actually occurred. The game segment recorded revenue of ¥4,480 million and a segment loss of ¥109 million. - FY2022-Q1MaterialisedAnnual report
「Revenue in the game segment was approximately unchanged from the most recent quarter, as progress on other projects already secured offset the cancellation of a development project.」
The cancellation of a development project actually occurred, materializing as an expected deterioration in gross profit margin and a factor behind the decline in game segment profit. - FY2021MitigatedAnnual report
「Revenue in the game segment progressed generally as planned, centered on development projects already secured.」
Progress was generally as planned, centered on projects already secured, and concerns over the timing of project deliveries and revenue recognition were explained to have eased for the current period. - FY2021-Q3MitigatedAnnual report
「Revenue in the game segment progressed generally as planned, centered on projects already secured.」
Progress was generally as planned, centered on projects already secured, and the risks of project delays and delivery slippage previously described were explained to have eased during the quarter. - FY2021-Q2MaterialisedAnnual report
「In outsourced development, the cost ratio increased from the initial expectation due to the impact of required specifications, the development schedule and other factors.」
A higher cost ratio due to the impact of requirements specifications and development schedules in contract development actually materialized, becoming a factor behind game segment profit falling below expectations. - FY2021-Q1RestatedAnnual report
「Revenue in the game business remained broadly steady, centered on projects already booked.」
The company explained that the game business remained broadly steady in the first quarter, centered on projects already booked, and that concerns regarding project progress and delivery delays had not changed significantly from before. - FY2020MitigatedAnnual report
「Operating profit and ordinary profit in the game business progressed steadily as titles under development advanced, but the pace of profit progress slowed as the difficulty of building the operating structure increased due to the impact of the novel coronavirus. … For the full fiscal year, results were broadly in line with the plan.」
Although difficulties in building the operating structure due to the infectious disease remain, the company explained that progress in titles under development and profit progress were broadly in line with the full-year plan. - FY2020-Q3MitigatedAnnual report
「Profit progress has improved because some projects generated profit recognition earlier than initially expected and utilization of human resources, which had declined due to the completion of small-scale and short-term development and operations support projects, has improved, although」
Some projects generated profit recognition earlier than initially expected, and utilization of development and operations support projects also improved. It was noted that some concerns regarding project progress and the timing of recognition had eased. - FY2020-Q2Cited as achievedAnnual report
「Revenue increased in the game business due to the contribution from the game operations support business transferred to Wit One Co., Ltd. on 1 October 2018, the recognition of projects whose deliveries had been deferred from the previous fiscal year, and the expansion of the development structure.」
The recognition during the current fiscal year of projects whose deliveries had been deferred from the previous fiscal year was cited as a factor behind higher revenue. There is no mention of any new delivery delays during the current quarter. - FY2020-Q1MaterialisedAnnual report
「Operating profit and ordinary profit declined in the game business because delays in development increased costs, royalty revenue decreased, selling, general and administrative expenses increased due to the development of the operating environment, and utilization fell below plan due to the impact of small-scale, short-term and completed projects.」
Development delays actually resulted in higher costs and became a factor behind lower profit in the game business. - FY2019-Q4MaterialisedAnnual report
「Revenue increased by ¥581 million, or 39.5%, year on year to ¥2,051 million, due to the contribution from the game operations support business transferred to (株)ウィットワン on 1 October 2018 and the recognition of revenue from projects whose delivery had been delayed into the current fiscal year.」
Projects whose deliveries had been delayed were recognized during the current fiscal year. The slippage in project delivery timing also materialized in the first quarter of the current fiscal year. - FY2019-Q1MaterialisedAnnual report
「Some project deliveries slipped into the second half, and some new development projects had their start dates pushed into the second half due to the timing of additional workspace.」
The delivery of some projects and the start of new development projects slipped into the second half, actually emerging as factors behind lower first-half revenue and profit. - FY2018-Q4MaterialisedAnnual report
「Although some new development projects have had their start dates pushed back from the schedule due to the timing of additional workspace and other factors,」
For new development projects, start dates were delayed from the schedule due to the timing of additional workspace and other factors. The project delay risk disclosed in the past has materialized specifically during the current quarter. - FY2018MitigatedAnnual report
「In the game business, while the development pipeline maintained a high utilization rate and development projects progressed smoothly, a certain amount of additional bookings not included in the plan were received throughout the year.」
The risk of past booking and delivery delays continues to be disclosed, but the company explained that the current fiscal year has seen a high utilization rate and smooth progress in development projects. - FY2018-Q2MitigatedAnnual report
「As a result of efforts to improve development progress management and maintain the utilization rate of the development pipeline, development projects progressed broadly as planned.」
The company explained that, as a result of improvements to its progress management system, development projects during the period progressed broadly as planned and maintained a high development pipeline utilization rate. - FY2018-Q1MitigatedAnnual report
「Development projects also progressed broadly as planned, maintaining a high development pipeline utilization rate.」
Although bookings and deliveries had been deferred in the past, development projects during the period progressed broadly as planned and the company explained that it maintained a high utilization rate. - FY2017-Q4MaterialisedAnnual report
「Although some bookings were delayed, development progressed broadly as planned and the development pipeline maintained a high utilization rate.」
Some booking delays continue to occur. Meanwhile, development progressed broadly as planned and the company explained that it maintained a high utilization rate. - FY2017-Q2MaterialisedAnnual report
「Unallocated costs significantly exceeded expectations because projects expected to be booked in the first half were cancelled or postponed. Although the company returned to profitability in the third quarter of the current consolidated fiscal period by working to control unallocated costs and develop new clients, the game business recorded a segment loss (operating loss) of ¥39 million due to the discontinuation of operated titles and delays in booking new projects.」
Project cancellations and postponements, the discontinuation of operated titles and delays in booking new projects occurred, resulting in a cumulative segment loss of ¥39 million in the game business. Meanwhile, the company explained that it returned to profitability in the third quarter. - FY2017-Q1MaterialisedAnnual report
「Unallocated costs significantly exceeded expectations because projects whose bookings were pushed back, as well as projects expected to be booked that were cancelled or postponed, overlapped.」
Bookings were deferred, and expected projects were actually cancelled or postponed. Unallocated costs significantly exceeded expectations and became a factor behind the game business loss. - FY2016-Q4MaterialisedAnnual report
「Some deliveries slipped into the second quarter of the consolidated fiscal period, and a major project expected to be booked in the first quarter of the current consolidated fiscal period was not booked.」
During the quarter, deliveries slipped into the following quarter and a major project was not booked. - FY2016First statedAnnual report
「Due to development delays, delivery of some projects expected in the current fiscal year slipped into the next fiscal year, and bookings for new projects scheduled for the current fiscal year also slipped into the next fiscal year.」
Development delays resulted in the deferral of current-period revenue recognition and new bookings, contributing to a segment loss of ¥143 million in the game business.