Financial Results: Fiscal Year Ending March 2017

The financial overview for the fiscal year ending March 2017 highlights a strategic shift toward digital business, which has become a key driver of profitability. Total sales declined slightly from ¥38,332 million in FY2015 to ¥37,034 million in FY2016, a 3.4 % year‑over‑year drop; however, operating profit fell more sharply, decreasing 30 % to ¥8,781 million. Ordinary profit and net income also slipped by 3.5 % and 7.1 %, respectively, reflecting tighter margins amid a higher proportion of digital revenue.

Digital sales accounted for 31.4 % of total revenue in FY2016, up from 28.3 % the previous year, and contributed to a 10 % rise in net income relative to sales growth. Geographic analysis shows Japan’s share of sales contracted by 5.8 % (¥1,679 million), while overseas revenue grew modestly by 4.0 % (¥381 million). Within overseas markets, North America and Europe saw modest gains of 2.4 % and 5.8 %, respectively, whereas Asia experienced a decline of 16.7 % (¥677 million). Digital unit sales increased overall by 1013.5 %, driven largely by smartphone and downloadable titles.

The company’s consolidated plan for FY2018 projects a 13.4 % sales increase to ¥42,000 million and a 31.0 % rise in operating profit to ¥11,500 million, underscoring continued emphasis on digital expansion. Methodologically, figures derive from internal financial statements and segment reporting, with sales broken down by product type (Pachislot, entertainment, real estate) and platform (PS4, iOS/Android). The analysis reflects a deliberate pivot toward high‑margin digital offerings while managing declining traditional revenue streams.