GungHo Business Report Vol. 27

GungHo Online Entertainment’s business strategy focuses on the global expansion of its gaming portfolio and the long-term maximization of its intellectual property. The company aims to transition from a Japan-centric development model to a global distribution strategy, leveraging emerging technologies like VR and AI to create new market opportunities. Central to this approach is the continued development of the Puzzle & Dragons franchise, which serves as a cornerstone of the company’s growth through cross-media expansion, including anime, comics, and e-Sports integration.

The company’s performance reflects a maturing domestic smartphone market, with net sales and operating income showing a downward trend between 2015 and 2017. Specifically, net sales declined from 154.3 billion yen in 2015 to 92.3 billion yen in 2017, while operating income fell from 72.4 billion yen to 34.4 billion yen over the same period. Despite these figures, the company maintains a strong focus on its four core growth pillars: maximizing existing values, creating new values, partner publishing, and exploring new fields. Key milestones include the 6th anniversary of Puzzle & Dragons, which reached 47 million downloads in Japan by late 2017, and the global expansion of titles like LET IT DIE, which surpassed 4 million downloads by February 2018.

Geographically, the company is shifting its focus toward international markets, particularly North America and Europe, while continuing to support its established Japanese user base. The operational scope spans smartphone, console, and PC online gaming segments. Future initiatives include the launch of the card game CHRONO MA:GIA and the soccer simulation title CALCIO FANTASISTA, both scheduled for 2018. By diversifying its service offerings and embracing e-Sports, the company seeks to revitalize its growth trajectory and provide sustainable, long-term entertainment experiences for a global audience.