Aiming FY2015 Q3 Financial Results Q&A Summary

Key insights

6 takeaways

01
The company is targeting a monthly turnover of 50 million to 100 million yen per new title by maintaining top 100 to 150 rankings on major app stores.See it on page 3
02
Management is shifting to an investment-heavy strategy for the next fiscal year, with five new titles currently in development to mitigate potential stagnation of older products.See it on page 3
03
Marketing investments for titles like Logres and Lost Regalia face a three-month lag between initial user acquisition and peak revenue contribution.See it on page 2
04
Logres remains resilient against external competitive pressures due to a current market scarcity of competing MMORPG titles.See it on page 2
05
Despite rising active user counts, the company is maintaining a cautious short-term outlook while navigating challenges in fully monetizing existing and new customer segments.See it on page 2
06
Development cycles for new projects have lengthened due to increased technical complexity, though the company expects to capitalize on current smartphone gaming demographics through effective promotion.See it on page 3

Summary

The fiscal year 2015 third-quarter financial results Q&A session outlines the strategic outlook for a mobile gaming company, focusing on the performance of its flagship title, Logres, and the roadmap for upcoming releases. The primary objective is to balance aggressive user acquisition through advertising with the long-term goal of stabilizing revenue through a diversified portfolio of MMORPG titles. Management anticipates that while the fourth quarter will see moderate growth, the full impact of recent marketing investments will materialize toward the end of the year, as historical data suggests a three-month lag between user acquisition and peak revenue contribution.

Key findings indicate that while active user counts are rising, the company is currently navigating challenges in capturing the full potential of both existing and new customer segments. Despite increased advertising expenditures—specifically for the new title Lost Regalia and sustained support for Logres—management maintains a cautious outlook for the immediate term. The company reports that external competitive pressures from other major titles have had a negligible impact on Logres, largely due to the scarcity of competing MMORPGs in the current market.

Looking toward the next fiscal year, the company is shifting toward an investment-heavy strategy. While revenue projections remain conservative, the development of five new titles is intended to offset any potential stagnation in older products. Management aims for each new release to achieve a monthly turnover of 50 million to 100 million yen by securing consistent rankings within the top 100 to 150 positions on major app stores. Although development cycles have lengthened due to the increasing complexity of large-scale projects, the company remains confident that effective promotional strategies can successfully capture the current peak in smartphone gaming demographics.