Aiming Fiscal Year 2018 Financial Results Q&A Summary

Key insights

5 takeaways

01
Aiming is shifting its revenue reliance away from new releases, which are expected to contribute only marginally, toward established core properties like Logres and Caravan Stories.
02
The company is targeting improved profitability by reducing development costs previously covered by external partners, with financial impacts exceeding the 10 to 20 million yen range.
03
A strategic capital and business alliance with Delightworks has been established to combine Aiming’s large-scale graphic and online development capabilities with Delightworks’ expertise in conceptual planning.
04
The partnership with Delightworks is positioned as a primary driver for future development efforts and long-term fiscal stability.
05
The 2018 fiscal strategy focuses on structural cost optimization and a transition toward collaborative development models to mitigate the modest performance of recent software launches.

Summary

Aiming’s fiscal year 2018 financial outlook emphasizes a strategic shift in revenue composition and development cost management. The company anticipates that recent title releases will contribute only marginally to overall sales compared to established core properties such as Logres and Caravan Stories. To improve profitability, the firm expects a notable reduction in cost of goods sold, driven by a decrease in development expenses previously covered by external partners. This adjustment represents a significant financial impact, exceeding the 10 to 20 million yen range, reflecting the scale of the projects involved.

A central component of the company’s growth strategy involves a capital and business alliance with Delightworks. This partnership is built on a mutual exchange of core competencies, where Aiming provides high-quality, large-scale graphic production and robust online game development capabilities. In return, the company leverages Delightworks’ expertise in game production and conceptual planning to enhance the marketability of joint projects. While the specific financial obligations of this partnership remain confidential, the collaboration is positioned as a key driver for future development efforts.

These insights reflect the company’s operational focus during the 2018 fiscal period, specifically addressing investor concerns regarding revenue diversification and the structural optimization of development costs. By balancing internal production strengths with strategic external alliances, the company aims to sustain its market position despite the modest initial performance of its newest software releases. The analysis underscores a transition toward more efficient cost structures and collaborative development models to support long-term fiscal stability.