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Nippon Ichi Software: Second Quarter Business Report (FY2017)

Key insights

6 takeaways

01
Nippon Ichi Software reported a strong financial recovery in the first half of FY2017, achieving 1.99 billion yen in net sales, 335 million yen in operating profit, and 307 million yen in ordinary profit.See it on page 9
02
The PlayStation Vita title 'Labyrinth of Refrain: Coven of Dusk' served as a key performance driver, exceeding 70,000 units sold.See it on page 4
03
Growth was supported by steady package software sales, consistent PlayStation Store digital performance, and successful expansion onto the Steam platform via the subsidiary NIS America.See it on page 3
04
As of September 30, 2016, the company maintains a stable financial position with total assets of approximately 3.47 billion yen and a workforce of 177 employees.See it on page 11
05
Corporate strategy prioritizes the development of high-quality commercial products over artistic expression to maximize the value of its original intellectual property portfolio.See it on page 2
06
Future operations focus on strengthening existing franchises and leveraging core game development expertise to explore new industries and global entertainment platforms.See it on page 3

Summary

Nippon Ichi Software’s second-quarter business report for the fiscal year 2017 outlines the company’s strategic focus on creating original intellectual property (IP) and expanding its global entertainment footprint. Guided by a corporate philosophy that prioritizes the development of high-quality commercial products over artistic expression, the company emphasizes the importance of consumer satisfaction and continuous innovation. The report highlights a successful period for new IP development, specifically noting the strong market performance of the PlayStation Vita title "Labyrinth of Refrain: Coven of Dusk," which exceeded 70,000 units sold.

Financial results for the first half of the fiscal year show significant growth compared to the previous year. Net sales reached approximately 1.99 billion yen, with operating profit rising to 335 million yen and ordinary profit reaching 307 million yen. This performance reflects a robust recovery from the previous year's losses, driven by steady sales in the package software business, consistent performance in online distribution via the PlayStation Store, and successful expansion into the Steam platform through the company's North American subsidiary, NIS America.

The company’s operational scope spans domestic and international markets, encompassing package software development, online content, licensing, and diversified business ventures. Strategic initiatives include leveraging existing game development expertise to explore new industries, strengthening series-based franchises, and maintaining direct engagement with fans through live broadcasts and event participation. As of September 30, 2016, the company maintains a stable financial position with total assets of approximately 3.47 billion yen and a consolidated workforce of 177 employees. Future objectives center on maximizing the value of its IP portfolio and continuing to pursue global opportunities across various entertainment platforms.