1st Half Financial Results: Fiscal Year Ending March 2019

The first‑half fiscal year ending March 2019 marked a record profit for the company, driven by strong performance in both console and mobile gaming segments. Total sales rose 16.7 % to ¥17,407 million, with operating profit increasing 26.9 % to ¥4,684 million and net income up 24.9 % to ¥6,290 million. The “Nioh” franchise and other licensed titles contributed significantly to revenue growth, while the mobile portfolio achieved a sales milestone of 1 billion yen per month and secured high rankings on the App Store and Google Play in Japan.

Geographically, domestic sales accounted for 66.3 % of the total, with overseas markets contributing 33.7 %. Within overseas sales, North America and Europe showed modest growth (0.2 % and –6.0 %, respectively), whereas Asia experienced a 46.1 % increase, reflecting successful expansion of mobile titles in the region. Unit sales declined overall by 6.6 % to 2,390 thousand units, largely due to a shift toward higher‑margin digital and licensed products.

The company’s strategic plan emphasizes continued development of global IPs, expansion into the smartphone market with a target of 5 million copies per title, and entry into new markets such as China. Capital expenditure is projected at ¥10 billion for real‑estate and ¥8 billion for development equipment, supporting the launch of AAA titles on PlayStation 4, Xbox One, and Steam. The mid‑term goal for FY2020 is to reach ¥51 billion in sales, ¥17 billion operating profit, and ¥21 billion ordinary profit, with a 10 % annual growth target across sales and profitability metrics.