2015 Fiscal Year Full-Year Financial Results Q&A Summary

The 2015 fiscal year financial results Q&A summary outlines the strategic outlook for a mobile gaming company navigating a maturing smartphone market. The primary thesis centers on transitioning from aggressive user acquisition via mass-market television advertising to a more sustainable, efficiency-focused model. While the flagship title, Logres, is expected to maintain a steady performance through content updates and the introduction of competitive features, the company acknowledges that the era of rapid, broad-based market growth has shifted toward a landscape where success requires high-quality, differentiated titles that foster long-term community engagement.

Key findings indicate that the company plans to reduce advertising expenditure as a percentage of revenue, focusing instead on optimized, data-driven marketing. Operational costs remain a priority, with a shift toward utilizing the company’s Taiwan studio for labor-intensive graphic production to manage development expenses. Regarding the product pipeline, the company is prioritizing "core-lite" RPGs that offer accessible entry points but deep community-driven retention mechanics. Management notes that development cycles have lengthened because modern market standards require higher initial content volume and polished user experiences at launch, making precise release scheduling more challenging.

The analysis reflects a broader industry trend where hit titles are increasingly difficult to produce due to high user acquisition costs and the technical maturity of mobile graphics. Consequently, the company is shifting its focus toward securing consistent revenue from a smaller, highly engaged user base rather than chasing mass-market scale. By leveraging expertise in MMORPG operations and carefully selecting licensed titles, the company aims to maintain profitability within a competitive environment where top-tier market positioning is essential for long-term viability.