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Financial Results for the Q3 of the Fiscal Year Ending March 2025

KT This document was created by machine translating the Japanese version. of the Fiscal Year Ending March 2025 1. Financial Results and Forecast 1. KT Financial Results and Forecast -Expense Level up your happiness FY23 Q3 YTD FY24 Q3 YTD Vs Previous Year Amount Profit Ratio Amount Profit Ratio Amount Percent Sales 61,136 - 52,570 ...

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Koei Tecmo

Report

FY2024 Annual Data Appendix

The FY2024 Annual Data Appendix presents a comprehensive financial and operational snapshot of Koei Tecmo’s performance across fiscal years 2022–2025, with detailed quarterly and full‑year figures for sales, cost of sales, gross profit, SG&A, operating profit, ordinary profit, and net profit. Sales peaked in FY22 Q4 at ¥28,978 million before declining to ¥17,590 million in FY23 Q4 and rebounding to ¥23,448 million in FY24 Q4. Gross profit margins fell from 62% in FY22 Q1 to 25% in FY24 Q4, reflecting rising cost of sales and SG&A. Operating profit followed a similar trend, with FY24 Q4 at ¥8,178 million versus ¥16,139 million in FY22 Q4. Net profit swung from ¥17,458 million in FY22 Q4 to a loss of ¥171 million in FY24 Q3, before recovering to ¥9,509 million in FY24 Q4. Return on equity rose from 20.7% in FY22 to 22.1% in FY24, while the weighted average cost of capital increased from 2.6% to 3.0%. Segment analysis shows the Entertainment division dominates revenue, contributing ¥73,917 million in FY24 and accounting for 94% of total sales. Amusement and real‑estate segments remain small, each under ¥5 billion annually. Geographic revenue distribution highlights Japan as the largest market (¥38,437 million FY24), followed by Asia excluding Japan (¥25,010 million) and North America (¥11,609 million). Overseas sales consistently exceed 40% of total revenue, peaking at 55.4% in FY24 Q4. Cost breakdowns reveal SG&A expenses rising from ¥3,626 million in FY22 Q1 to ¥8,301 million in FY24 Q3, driven largely by advertising and other variable costs. Employment costs increased modestly from ¥5,110 million to ¥6,500 million over the period. Capital expenditures remained modest, with FY24 cumulative investment at ¥1,967 million. Headcount grew from 2,413 employees in FY22 Q1 to 2,736 by FY24 Q4, a 9% YoY increase. Digital sales dominate the Entertainment segment, with digital download and DLC revenue accounting for over 60% of total entertainment sales in FY24. New title launches remain steady, with 2,370 units sold in FY24. The appendix also outlines the FY24 title line‑up, featuring high‑profile releases such as “Romance of the Three Kingdoms 8 Remake” and “Fairy Tail 2,” targeting global markets across console, PC, and mobile platforms. These releases are positioned to support the company’s strategy of expanding digital and overseas sales while maintaining strong domestic performance.

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Koei Tecmo

Whitepaper

IP Rights Whitepaper

The intellectual property landscape of 2003 reflects a critical period of transition for the video game industry, characterized by a fundamental tension between creative developers and the publishing entities that provide capital. The primary objective of this analysis is to educate developers on the long-term strategic value of intellectual property ownership and the contractual mechanisms used to secure these rights. At the turn of the millennium, the industry standard favored a model where publishers retained full ownership of game titles, characters, and underlying technologies in exchange for funding and distribution. This dynamic often left independent studios vulnerable to financial instability once a project concluded, as they lacked the residual income and brand equity necessary to sustain growth between development cycles. Key findings suggest that the most successful and sustainable development studios are those that prioritize the retention of specific intellectual property components, such as proprietary engines, tools, and unique gameplay mechanics. While publishers typically insist on owning the trademark and copyright of a specific franchise to mitigate financial risk, developers can negotiate for "carve-outs" that allow them to reuse their underlying software architecture for future projects. Data indicates that studios possessing their own technology are significantly more likely to secure favorable terms in subsequent negotiations and maintain higher valuation during acquisitions. The scope of this analysis covers the global interactive entertainment market during the early 2000s, focusing specifically on the contractual relationship between independent third-party developers and major publishing houses. The methodology involves a comprehensive review of standard industry work-for-hire agreements and licensing structures prevalent during the era. It concludes that developers must adopt a more sophisticated legal posture, treating intellectual property not just as a creative output, but as a primary business asset. By understanding the nuances of derivative rights, sequels, and cross-media licensing, developers can better protect their creative legacy and ensure the long-term viability of their studios in an increasingly competitive global market. The shift toward developer-owned IP is presented as a necessary evolution for the industry to foster innovation and financial independence.

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International Game Developers’ Association

Report

Financial Results Briefing Session of Fiscal Year Ended December 31, 2025 [17,284KB]

GungHo Online Entertainment’s FY 2025 financial briefing outlines a strategic pivot from Japan‑centric mobile development toward global expansion, emphasizing action titles on consoles and PCs. The company reports a 64.1 % overseas net‑sales ratio in FY 2025, up from 47.7 % in 2019 and 56.2 % in 2020, reflecting intensified sales in North America and Europe through new releases such as “Let It Die: Inferno” on PlayStation 5, Steam, and Nintendo Switch. The launch of nine global titles in 2025, including the “Ragnarok” series and “Puzzle & Dragons,” is highlighted as a key growth driver, with the latter celebrating its 5 000‑day anniversary and hosting cross‑platform events to boost user activity. Financially, consolidated net sales fell by 1.3 % YoY to ¥125.3 billion, driven mainly by declines in mobile titles and “Ragnarok”‑related revenue under subsidiary Gravity. Operating profit contracted by 9.3 % YoY to ¥276 million, as SG&A expenses rose due to increased advertising spend and personnel costs following the full acquisition of Alim in December 2024. Non‑consolidated results remained flat, but mobile sales slipped and Gravity’s “Ragnarok” titles underperformed, contributing to the consolidated loss. The briefing covers a global geographic scope—North America, Europe, Latin America, and Asia—with a 2025 focus on launching titles in over 150 countries. Methodologically, data derive from consolidated financial statements and quarterly performance metrics, with a clear emphasis on aligning product development with international market demand.

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GungHo Online Entertainment

Whitepaper

Competence-Based Open Badges for the Gaming Industry

The gaming industry is increasingly adopting competence-based open badges as a standardized method for verifying professional skills and facilitating talent mobility across the global market. These digital credentials serve as verifiable evidence of specific technical and soft skills, addressing the growing need for a transparent framework that bridges the gap between formal education and the rapidly evolving requirements of game development studios. By utilizing metadata-rich badges, employers can more accurately assess the practical capabilities of candidates in areas such as game design, programming, and project management, while professionals gain a portable means of showcasing their expertise throughout their careers. The implementation of this system relies on a structured taxonomy of competencies tailored specifically to the nuances of the gaming sector. This framework categorizes skills into distinct levels of proficiency, allowing for a granular understanding of a worker's strengths. Data suggests that this approach reduces recruitment friction and helps organizations identify internal skill gaps more effectively. The scope of this initiative is international, reflecting the borderless nature of game development, and it encompasses various industry segments including indie studios, AAA developers, and educational institutions. Methodologically, the development of these badge standards involves collaboration between industry stakeholders and academic experts to ensure that the criteria for earning a badge remain relevant to current technological trends. By aligning digital recognition with real-world performance, the industry establishes a more meritocratic ecosystem. This shift toward micro-credentials supports lifelong learning and provides a scalable solution for professional development in a field where traditional degrees may not always keep pace with the speed of innovation. Ultimately, the integration of open badges fosters a more agile workforce capable of meeting the complex demands of modern interactive entertainment.

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International Game Developers’ Association

Whitepaper

Best Practices in Finance

The International Game Developers Association outlines essential financial management strategies for game development studios, emphasizing the transition from creative passion to sustainable business operations. Effective financial planning centers on the creation of detailed, realistic budgets that account for the high volatility and long development cycles inherent in the interactive entertainment industry. Developers must maintain rigorous cash flow management to survive the "gap" between milestone payments, ensuring that overhead costs do not outpace incoming revenue from publishers or investors. Successful studios prioritize transparency and accountability by implementing standardized accounting practices and regular financial audits. These internal controls allow leadership to identify potential budget overruns early in the production cycle, facilitating proactive adjustments rather than reactive crisis management. Furthermore, diversifying revenue streams and maintaining a significant cash reserve are identified as critical safeguards against project cancellations or delayed launches. By treating financial health as a core pillar of the development process, studios can better negotiate with publishers and retain greater creative independence. Strategic investment in human capital and infrastructure must be balanced against the necessity of maintaining a low burn rate during pre-production phases. The industry standard suggests that financial literacy among studio founders is just as vital as technical or artistic expertise for long-term viability. Ultimately, the integration of disciplined fiscal reporting with agile project management enables developers to mitigate risks, secure follow-on funding, and build a stable foundation for multi-project growth in a competitive global market.

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International Game Developers’ Association

Whitepaper

Best Practices in Resource Management and Scheduling

Effective resource management in game development requires a shift from viewing personnel as interchangeable units to recognizing them as specialized assets with unique skill sets and varying levels of productivity. Successful scheduling hinges on the integration of granular task estimation with a high-level understanding of project milestones. By utilizing historical data from previous projects, leads can more accurately predict the time required for specific assets and code modules, though they must remain flexible enough to account for the inherent unpredictability of creative software development. The industry standard for scheduling involves a tiered approach where macro-level goals are established by producers while micro-level task lists are generated by the individual contributors performing the work. This bottom-up estimation strategy increases developer buy-in and accuracy. Data suggests that over-allocation—scheduling staff at more than eighty percent of their theoretical capacity—leads to diminishing returns due to burnout and the loss of "buffer time" needed for bug fixing and iteration. Effective managers prioritize the elimination of bottlenecks, particularly in cross-disciplinary dependencies where art and engineering pipelines intersect. Geographically focused on the global development community during the early 2000s, these practices emphasize the necessity of specialized software tools for tracking progress rather than relying on static spreadsheets. The methodology relies on qualitative analysis of successful studio workflows and quantitative tracking of man-months versus actual output. Ultimately, the most efficient projects are those that maintain a living schedule, updated weekly to reflect current velocity, ensuring that resource reallocation happens in real-time rather than as a reactive measure during a crisis or crunch period.

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International Game Developers’ Association

Report

Financial Results for the First Quarter: Fiscal Year Ending March 2025

Financial results for the first quarter of fiscal year ending March 2025 show a modest decline in consolidated sales to ¥17.6 billion, down 3.8 % YoY and 24.9 % QoQ, driven by weaker console sales after a strong launch in the prior quarter and declining online/mobile revenue from titles introduced in 2023. Operating profit fell ¥1.78 billion, a 23.8 % YoY drop and 30 % QoQ decline, largely due to higher variable costs from an expanded mobile portfolio and reduced partner‑covered development expenses. Ordinary profit rose ¥4.02 billion (27.3 % YoY) and net profit increased to ¥13.64 billion (29.2 % YoY), supported by higher non‑operating income amid a volatile financial environment. Segment analysis indicates the entertainment division—comprising console and mobile businesses—experienced a 3.1 % sales decline, with physical console units falling 7.4 % and digital downloads dropping 5.9 pp. The amusement segment saw a modest sales drop, while real‑estate sales decreased due to property disposals but profit rose from lower repair costs. Regional performance shows Japan sales down 6.9 %, overseas up 0.5 %, North America up 5.3 %, Europe up 101.7 % (though still small in volume), and Asia down 11.3 %. Methodologically, the report aggregates quarterly data from all operating segments, with expense breakdowns by employment, outsourcing, and advertising costs. No change to FY 2024 guidance is announced; the company maintains a conservative plan of ¥90 billion sales and ¥30 billion operating profit for the full year, with a focus on repeat console titles, steady online/mobile revenue, and incremental royalty income.

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Koei Tecmo

Report

Strong Sales Growth in the Second Quarter of 2024/25: Nacon

Nacon reported a 38.5 % surge in second‑quarter sales, reaching €44.7 million for the July‑September 2024 period and confirming its full‑year growth targets. Total first‑half sales for the fiscal year rose 13.6 % to €77.0 million, driven largely by a 65.4 % increase in gaming revenue (€27.9 million). Within gaming, catalogue sales doubled (+98.5 %) to €14.9 million, propelled by the launch of Test Drive Unlimited: Solar Crown™ and the strong reception of Ravenswatch™, while back‑catalogue sales grew 38.8 % to €13.0 million thanks to recent titles such as Robocop: Rogue City™ and Taxi Life™. Accessories sales expanded 8.7 % to €15.7 million, with headsets and controllers maintaining momentum in the U.S. and Australia. The company highlighted a robust release schedule for the second half of 2024/25, including new titles across sport, racing, adventure, and simulation genres, as well as several premium accessories such as a REVOSIM steering wheel and a COBRA chair. Nacon’s integrated publishing and peripherals model is positioned to sustain growth and enhance operating income. Geographically, Nacon operates through 23 subsidiaries with a distribution network covering 100 countries. The financial data are presented under IFRS, and the company’s workforce exceeds 1,000 employees. The press release was issued on 28 October 2024 and follows the company’s 2023/24 sales of €167.7 million and operating income of €20.9 million.

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Nacon

Report

Integrated Report 2023

The Integrated Report 2023 outlines Square Enix Group’s strategic vision of “Creating New Worlds With Boundless Imagination,” emphasizing the company’s commitment to delivering unforgettable experiences that enrich customers’ lives. The report highlights financial performance, operational reviews, and a special feature section that collectively illustrate how creative innovation drives business results. Key financial highlights are summarized on page 3, while stakeholder messages and operational insights appear in subsequent sections. The report also dedicates a portion to Environment, Social and Governance (ESG) values, underscoring the group’s focus on sustainability, social responsibility, and corporate governance. Executive leadership details are provided on page 34, offering transparency into the organization’s governance structure. Geographically, the report covers Square Enix Group’s global operations, with data drawn from its worldwide subsidiaries and affiliates. The time frame spans the fiscal year 2023, with comparative figures from prior periods to contextualize growth trends. Industry segments represented include video game development and publishing, digital entertainment services, and related technology platforms. Methodologically, the report aggregates financial statements, operational metrics, and ESG disclosures sourced from internal accounting systems, market research, and third‑party sustainability assessments. While specific survey sizes are not disclosed, the data reflect comprehensive corporate reporting standards and adherence to international financial reporting frameworks. The integrated approach demonstrates how creative ambition, robust governance, and responsible stewardship converge to support Square Enix Group’s long‑term value creation.

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Square Enix

Financial Results for the Q3 of the Fiscal Year Ending March 2025

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Annual Report 2017: Shaping the Future of Entertainment

IP Rights Whitepaper

Financial Results Briefing Session of Fiscal Year Ended December 31, 2025 [17,284KB]

Competence-Based Open Badges for the Gaming Industry

Best Practices in Finance

Best Practices in Resource Management and Scheduling

Annual Report and Consolidated Financial Statements 2022

Annual Report 2010: Bandai Namco Holdings Inc.

Financial Results for the First Quarter: Fiscal Year Ending March 2025

Strong Sales Growth in the Second Quarter of 2024/25: Nacon

Annual Financial and Corporate Social Responsibility Report: 2020/21

Integrated Report 2025

FY24 Financial Results: Reset and Back on Track

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