Current Management Briefing 2018

Marvelous Inc.’s 2018 management briefing outlines the company’s strategic commitment to creating diverse entertainment content across multiple platforms, including online games, home consoles, arcade cabinets, and audio-visual media. The company’s core business model centers on a multi-content, multi-use strategy, leveraging original and prominent third-party intellectual property to provide global entertainment experiences.

Financial performance for the fiscal year ending in 2018 reflected a mixed landscape. Total sales reached 25.291 billion JPY, a decline from the 29.387 billion JPY reported in the previous fiscal year, while operating profit fell to 5.147 billion JPY from 5.754 billion JPY. This downturn was primarily driven by a significant slump in the online game segment, where sales dropped to 10.034 billion JPY due to the underperformance of new titles and a decline in flagship game revenue. Conversely, the audio-visual segment demonstrated strong growth, with sales rising to 6.396 billion JPY, bolstered by successful flagship programs and secondary-use revenue. The consumer segment, encompassing console and arcade operations, remained relatively stable at 8.891 billion JPY, supported by consistent performance from overseas branches and select software titles.

Looking ahead, the company aims to revitalize its online game division by recruiting high-profile external producers, expanding into non-game applications, and increasing its presence in Asian markets, particularly China. In the consumer sector, the strategy focuses on developing large-scale global console titles and exploring new opportunities within the amusement industry. The audio-visual segment will continue to prioritize the acquisition of robust intellectual property and the expansion of 2.5-dimensional stage performances into international markets. Despite the recent decline in profitability, the company maintains a stable dividend policy, with a planned payout of 33 JPY per share for the 2019 fiscal year.