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Market Forecast

Newzoo’s Global Games Market Report 2021

This analysis explores the trajectory of the global games, esports, and mobile markets for 2021, forecasting a year of sustained engagement despite the easing of pandemic-related lockdowns. The primary thesis suggests that while the explosive growth of 2020 will normalize, gaming habits have become deeply ingrained, positioning the global market to reach 2.8 billion players and $189.3 billion in revenue. Growth is expected to be particularly robust in emerging markets such as Southeast Asia and the Middle East. Key findings highlight a significant shift toward platform agnosticism and the "metaverse." Cloud gaming is projected to surpass $1 billion in annual revenue for the first time, driven by high-fidelity experiences like Cyberpunk 2077 that bypass expensive hardware requirements. Simultaneously, games are evolving into social platforms for non-gaming events, exemplified by virtual concerts in Fortnite and Roblox. In the hardware sector, supply chain disruptions will continue to limit next-generation console availability, while AAA software delays are expected as the long-term impacts of remote development manifest. The mobile segment faces a pivotal transition due to Apple’s removal of the Identifier for Advertisers (IDFA), which is expected to disrupt traditional user acquisition and push publishers toward IP-based games and creative marketing. Despite these hurdles, 5G penetration is set to triple, with 16% of active smartphones becoming 5G-ready by year-end. Additionally, Chinese developers are increasingly exporting high-budget, immersive mobile experiences like Genshin Impact to Western markets. In the esports and streaming sectors, mobile titles are beginning to outperform traditional PC giants in viewership. Organizations are diversifying into lifestyle brands and content-creator collectives to mitigate risk. Furthermore, the industry is placing a heightened focus on social responsibility, with major stakeholders collaborating to reduce toxicity and improve diversity and inclusion in response to growing consumer demand for representative content.

market-analysis market-forecast player-behavior

NewzooJan 2021

Report

Next-Gen Mobile Games: The Arrival of Cross-Platform and Evolution of High-Fidelity Mobile Games

Mobile gaming has emerged as the dominant force in the global games industry, projected to generate $90.7 billion in 2021 and represent over half of all global gaming revenue. This growth is underpinned by a massive player base of 2.8 billion people, which is expected to expand to 3.2 billion by 2023. The industry is currently undergoing a fundamental transformation as it shifts toward high-fidelity experiences characterized by complex mechanics, 3D graphics, and AAA-quality production. While Western markets still lean toward casual titles, mobile-first regions like China are leading this evolution, with high-fidelity games accounting for nearly 70% of the top-grossing iOS titles in that region. The convergence of mobile hardware and traditional console capabilities is a primary driver of this trend. Advancements in 5G connectivity, cloud computing, and AI-powered procedural storytelling are enabling developers to port flagship PC and console franchises to mobile devices without sacrificing depth. This technological leap has positioned mobile as a first-class platform where cross-platform play and social connectivity are now essential requirements. Furthermore, the rise of dedicated gaming smartphones and premium 5G-ready devices reflects a growing consumer demand for competitive, mid-core, and immersive experiences that were previously restricted to high-end hardware. Industry leaders anticipate that mobile gaming will achieve technical parity with high-end PCs and consoles within the next five to ten years. As major publishers increasingly prioritize platform-agnostic development, the gap between Western and Eastern market compositions is expected to narrow. The future of the medium lies in its ability to provide sophisticated, snackable, yet deeply immersive content to a mobile-native generation, solidifying the smartphone as the primary gateway for global gaming engagement.

market-analysis market-forecast global+1

NewzooJan 2021

Report

Beyond 2021: Where Does Gaming Go Next?

The global games market experienced unprecedented acceleration between February 2020 and May 2021, driven by the unique social and economic conditions of the COVID-19 pandemic. This period saw the addition of 173 million new or returning players, bringing the global total to nearly 3 billion. While veteran players—those active before the pandemic—accounted for the majority of market growth by increasing their playtime by 42%, new and returning players represent a significant demographic shift, with 53% of this group being female. The industry reached $175.8$ billion in revenue in 2021, with mobile gaming accounting for 52% of the total. Projections indicate a compound annual growth rate of 8.7%, with the market expected to surpass $218 billion by 2024. Key drivers for this continued expansion include the rise of gaming subscription services, which provide low-barrier entry points for new players, and the evolution of games into social hubs or "metaverses." These persistent virtual worlds facilitate non-gaming experiences such as virtual concerts and identity expression through avatars, effectively competing with traditional social media. Engagement is increasingly defined by content consumption beyond active play. Live-streaming audiences are expected to reach 920 million by 2024, and players report a higher intent to continue watching gaming content than to increase their spending or playtime. Furthermore, the industry is moving toward a platform-agnostic future. Cross-platform play and cloud gaming are dissolving traditional hardware barriers, a trend reinforced by global semiconductor shortages and game development delays that have hampered the console and PC segments more than mobile. This analysis is based on a Newzoo study commissioned by Google, utilizing market sizing models and a survey of over 16,900 respondents across 16 countries in North America, Latin America, Europe, the Middle East, Africa, and Asia-Pacific. The findings suggest that while new players may be less "sticky" than veterans, long-term retention will depend on fostering a holistic gaming culture that integrates social interaction, viewership, and multi-platform accessibility.

market-analysis market-forecast player-behavior+1

Google & NewzooJan 2021

Report

Análisis del Impacto del COVID‑19 y Mejores Prácticas de Teletrabajo en el Sector de los Videojuegos: Dec 2020

## Resumen Ejecutivo **Documento:** *Análisis del Impacto del COVID‑19 y Mejores Prácticas de Teletrabajo en el Sector de los Videojuegos – Diciembre 2020* El informe examina cómo la pandemia de COVID‑19 transformó los mercados financieros, la producción, el consumo y la organización de la industria de los videojuegos. A partir de datos de mercado, encuestas a desarrolladores y análisis de herramientas de trabajo remoto, se extraen lecciones y recomendaciones que siguen siendo relevantes para 2024‑2025. --- ### 1. Mercados y comportamiento del consumidor | Aspecto | Observaciones clave | Implicaciones | |---|---|---| | **Acciones** | Los índices globales cayeron al inicio de la pandemia, pero los valores vinculados a videojuegos (Tencent, Ubisoft, etc.) superaron a los índices generales, que permanecen por debajo de los niveles pre‑COVID. | Los videojuegos se consolidan como “refugio defensivo” y sector de crecimiento. | | **Actividad de juego** | Picos de usuarios concurrentes en Steam dejaron de seguir patrones semanales; ventas de hardware (Nintendo Switch) y de software digital se dispararon en marzo‑mayo 2020. Las ventas físicas cayeron drásticamente. | La demanda se desplazó a canales digitales; los fabricantes de hardware que ofrecieron portátiles (Switch, Switch Lite) se beneficiaron. | | **Móvil** | (Resumen incompleto en el texto) – se indica un aumento de la actividad en plataformas móviles, reforzando la tendencia “play‑anywhere”. | Los estudios con presencia móvil ganaron cuota de mercado y deben reforzar sus pipelines cross‑platform. | --- ### 2. Impacto en la fuerza laboral de los estudios - **IGDA Survey (2 500 devs)** - 18,5 % detuvieron contrataciones. - 13,3 % cancelaron pasantías. - 8,6 % (dato incompleto) redujeron equipos o pospusieron proyectos. - **Consecuencias** - Reducción de la capacidad de escalar proyectos a medio plazo. - Aumento de la incertidumbre laboral y de la carga de trabajo para los equipos existentes. --- ### 3. Cambios en los hábitos de consumo de juegos - **Servicios de suscripción** (e.g., Xbox Game Pass, PlayStation Now) mostraron resiliencia y crecimiento sostenido. - **Nuevas suscripciones** aumentaron rápidamente al inicio de la pandemia, pero su ritmo se estabilizó por debajo del crecimiento de los usuarios activos de juegos tradicionales. - **Implicación**: Los modelos basados en suscripción son ahora una pieza central de la estrategia de ingresos y requieren inversión en contenido continuo (LiveOps, DLCs). --- ### 4. Esports y eventos competitivos - Los torneos migraron totalmente a entornos online. - **League

market-analysis employment market-forecast+1

IDG ConsultingDec 2020

Presentation

FY2020 Presentation Material

CyberAgent achieved record-high financial performance in fiscal year 2020, reporting consolidated sales of 478.5 billion yen and an operating profit of 33.8 billion yen. These results represent year-over-year increases of 5.5% and 9.9% respectively, surpassing initial forecasts despite the operational challenges posed by the global pandemic. Growth was primarily catalyzed by the Game business, which generated 155.8 billion yen in sales. This segment benefited from the sustained performance of legacy titles and the successful launch of Project SEKAI, which acquired over two million users within its first three weeks. The Media business, centered on the ABEMA streaming platform, remains a critical pillar for long-term expansion. ABEMA experienced a 22.6% increase in annual sales to 57 billion yen, supported by a cumulative download base exceeding 59 million. While the segment continues to operate at a loss of 18.5 billion yen due to aggressive up-front investments, these losses are narrowing as new monetization streams mature. Specifically, the rapid adoption of Pay-Per-View services and a seventeen-fold increase in transaction volume for the WINTICKET cycling betting service have diversified the platform's revenue model beyond traditional advertising. Looking toward fiscal year 2021, the strategic focus shifts toward scaling consolidated sales to 500 billion yen while maintaining a robust financial position. To manage this growth, a new governance structure has been implemented to separate management oversight from execution. Although increased selling, general, and administrative expenses led to a quarterly dip in operating profit during the final months of 2020, the overall trajectory remains positive. The combination of a highly profitable gaming portfolio and the accelerating monetization of digital media assets positions the organization for sustained domestic leadership in the Japanese internet services market.

market-forecast marketing advertising+1

CyberAgentOct 2020

Financial

FY2021 First Quarter Financial Results

GREE’s financial results for the first quarter of fiscal year 2021, ending September 30, 2020, indicate a period of significant profitability driven by global expansion and optimized cost structures. The company reported net sales of ¥15.2 billion and an operating income of ¥1.6 billion, which surpassed internal forecasts. This financial recovery follows a loss in the previous quarter and was supported by a 9.4% reduction in total costs, falling to ¥13.6 billion. Key drivers for this improvement included a decrease in fixed costs due to business restructuring and lower advertising expenses following the conclusion of major anniversary events. The operational focus centered on the "Game engine, IP, and global" strategy. A primary highlight was the July 1 global launch of SINoALICE across 139 countries and territories, which significantly boosted overseas earning potential. The company also made strategic inroads into the Chinese market with the release of DanMachi in late September and preparations for the November launch of Another Eden. Beyond gaming, the company expanded its Live Entertainment segment through the REALITY virtual distribution app and strengthened its advertising and media reach, with the aumo platform exceeding 10 million monthly users. Looking ahead, the company maintains a robust development pipeline, planning to release two to three in-house titles annually, including upcoming projects like Heaven Burns Red and a Knights of Sidonia game. To enhance shareholder value, the company announced a significant stock repurchase program of up to 20 million shares, valued at approximately ¥12.0 billion, to be executed through September 2021. The overall outlook remains firm, predicated on the continued stabilization of coin consumption in existing titles and the scaling of global operations.

investment global market-forecast

GREEOct 2020

Financial

Sales for First Half of FY 2020/21

Nacon experienced significant financial growth during the first half of the 2020/2021 fiscal year, covering the period from April 1 to September 30, 2020. Total sales reached 86.6 M€, representing a 35.9% increase compared to the previous year. This growth accelerated in the second quarter, which saw a 46.4% rise in turnover to 48.6 M€. The primary driver of this performance was the accessories segment, which surged 118% to 51.6 M€ for the half-year. This expansion was fueled by strong demand for premium RIG headsets in the United States and steady sales of official PlayStation 4 controllers. The gaming software division reported mixed results, with total half-year sales down 13.1% to 32.8 M€ due to a high basis of comparison from major releases in the prior year. However, the second quarter showed signs of recovery with a 3.0% increase, supported by the launches of WRC 9 and Tennis World Tour 2. Digital sales now account for 72% of total game revenue, bolstered by a 242% increase in back-catalogue performance. Geographically, the company maintains a global presence with 17 subsidiaries and distribution across 100 countries, focusing on the AA video game market and premium peripherals. Looking forward, the outlook remains positive as the industry transitions to next-generation consoles like the PlayStation 5 and Xbox Series X|S. Nacon plans to release five new titles and a range of specialized controllers for cloud gaming and new hardware. Based on these trends, the company has upwardly revised its full-year sales target to between 150 M€ and 160 M€, maintaining a current operating income target of 18%. Long-term strategic goals for the 2023 Nacon Plan include reaching sales of 180 M€ to 200 M€ with operating margins exceeding 20%.

market-analysis market-forecast france+1

NaconOct 2020

Financial

Integrated Report 2020

Bandai Namco’s 2020 integrated report presents a unified strategy that positions the group as a leading global entertainment innovator through an “IP‑axis” model, which aligns its five business units around roughly 300 core intellectual properties such as Gundam, Dragon Ball, and Idolmaster. The thesis emphasizes that coordinated exploitation of these franchises across toys, games, visual‑music content, and animation drives both short‑term profitability and long‑term fan engagement, while digital transformation and a people‑first culture sustain competitive advantage. Financial results for the fiscal year ending March 2021 demonstrate the effectiveness of this approach. Net sales reached ¥723.9 billion and operating profit ¥78.7 billion, delivering a 10.9 % operating margin and a 13.1 % return on equity despite a COVID‑19‑related sales dip of about ¥14 billion and a ¥4 billion profit reduction. Gundam model shipments totaled 31 million units, with half of sales generated overseas—predominantly in Asia and growing in North America—while the PAC‑MAN 40‑year anniversary campaign expanded the brand into music, fashion, sports and AI. Total assets rose modestly to ¥619.8 billion, net assets to ¥4.18 trillion, and the effective tax rate fell to 26.5 %. Strategic initiatives reinforce the IP‑centric vision. A ¥25 billion mid‑term content fund and dedicated IP‑Strategy Division support new‑IP creation and global roll‑outs, while the Visual‑Music Production Unit delivered over 1,100 copyrighted works and targets ¥30 billion in sales for FY

market-forecast investment marketing+4

Bandai NamcoSept 2020

Presentation

3Q FY2020 Presentation Material

CyberAgent’s performance during the third quarter of fiscal year 2020 remained resilient despite the economic disruptions caused by the COVID-19 pandemic. Consolidated sales reached 112.8 billion yen, a marginal year-over-year decrease of 0.7%, while operating profit stood at 8.2 billion yen. By the end of this period, the company had already achieved between 89% and 102% of its full-year operating profit forecasts. This stability was largely driven by the Internet Advertisement segment, which successfully offset declining demand in certain sectors by pivoting toward advertisers benefiting from stay-at-home trends, and the Game business, which generated 36.7 billion yen in quarterly revenue following major title anniversaries. The media segment, centered on the streaming platform ABEMA, demonstrated significant growth with a 19.2% year-over-year increase in sales to 13.3 billion yen. This expansion was supported by a record 56 million downloads and a surge in the WINTICKET gambling transaction business, which doubled its volume to 7.2 billion yen. Strategic priorities for this segment include reaching one million ABEMA Premium subscribers by late 2020 and leveraging new virtual production technologies, such as Pay-Per-View systems, to enhance monetization. Looking forward, the corporate strategy focuses on establishing ABEMA as a long-term financial pillar while maintaining market share in the advertising sector through AI-driven efficiency. In the gaming division, the emphasis remains on the dual approach of developing new intellectual properties and extending the lifecycle of existing titles through robust operational management. These efforts are underpinned by a broader commitment to ESG initiatives and information security, ensuring sustainable value creation across the company’s diverse digital portfolio.

market-forecast investment advertising+1

CyberAgentJul 2020

Financial

FY2020 Third Quarter Financial Results

GREE’s financial results for the third quarter of fiscal year 2020 reflect a strategic shift toward first-party intellectual property (IP) and global expansion. Net sales reached ¥15.4 billion, a decrease from the previous year, yet operating income rose to ¥1.2 billion, surpassing internal forecasts. This profitability was driven by a significant reduction in total costs, which fell by ¥1.4 billion quarter-over-quarter due to more efficient advertising spend and lower variable costs. The operating income margin subsequently improved to 8.0%. The gaming segment remains the primary earnings pillar, characterized by strong overseas performance from titles like Another Eden, which expanded its distribution to 71 countries and territories. While coin consumption in app games saw a slight decline to ¥9.7 billion, the company is preparing for future growth through the global self-distribution of SINoALICE and the development of new titles such as Assault Lily: Last Bullet and Heaven Burns Red. However, some third-party IP launches originally slated for FY20 have been postponed to FY21 or later. Beyond core gaming, the company reported progress in its Live Entertainment and Advertising and Media segments. The REALITY virtual live distribution platform expanded its original content and interactive events, while media platforms like LIMIA and aumo focused on community engagement and restaurant support initiatives. Looking ahead, the company anticipates a potential one-time loss in the fourth quarter due to restructuring costs aimed at long-term earnings stability. Despite these adjustments, the financial position remains robust with ¥86 billion in cash and cash equivalents. Shareholder returns continue to be a priority, evidenced by a planned ¥10 per share dividend and an ongoing ¥2.5 billion stock repurchase program.

market-forecast investment global

GREEMay 2020

Financial

FY2020 Fourth Quarter Financial Results Briefing

GREE, Inc. reported its financial results for the fiscal year ending June 2020, highlighting a period of strategic restructuring and global expansion. Full-year net sales reached ¥62.7 billion with an operating income of ¥3.2 billion. While the fourth quarter saw a slight operating loss of ¥0.07 billion, this was primarily attributed to ¥0.83 billion in one-time restructuring costs, including office consolidations and employee work-from-home benefits. Adjusted for these factors, the profit generation base remained stable at approximately ¥0.8 billion for the quarter. The company’s operations are centered on three pillars: games, live entertainment, and advertising and media. The game business remains the primary driver, focusing on long-term title management and global distribution. Significant growth was noted in overseas sales, supported by the expansion of titles like Another Eden and the successful July 2020 launch of SINoALICE in 139 countries. Future growth is anticipated through a robust pipeline of new titles and a strategic push into the Chinese market via partnerships with local distributors such as bilibili. The live entertainment segment continues to invest in the REALITY platform, focusing on both consumer functionality and B2B support for virtual events. Meanwhile, the advertising and media business faced headwinds due to COVID-19, leading to a focus on making the segment leaner and more vertically integrated. Looking toward FY2021, the strategy emphasizes aggressive investment across all three pillars. Management expects the media business to return to profitability through restructuring, while the game segment is projected to see an immediate boost in operating income to over ¥1 billion in the first quarter. Shareholder returns remain a priority, evidenced by a ¥2.5 billion stock repurchase program and a commitment to a 20% consolidated dividend payout ratio.

market-analysis investment market-forecast

GREE Inc.Jan 2020

Financial

Financial Highlights for the 2nd Quarter of the Fiscal Year Ending March 2021 (FY2020)

Koei Tecmo Holdings reported significant financial growth for the second quarter of the fiscal year ending March 2021, characterized by a substantial increase in profitability and revenue compared to the same period in the previous year. Net sales rose by 39.7% to 23.1 billion yen, while operating income surged by 145.6% to 8.4 billion yen. This performance was driven primarily by the Entertainment segment, which saw a 45.8% increase in sales and a 176.3% jump in operating income. In contrast, the Amusement segment experienced a decline, with sales falling 13.8% and operating income dropping 88.8% year-over-year. The consolidated balance sheet as of September 30, 2020, shows total assets increasing to 160.4 billion yen, up from 147.8 billion yen at the end of the prior fiscal year. This growth was largely fueled by a rise in investment securities, which climbed from 71.4 billion yen to 87.4 billion yen. Net assets also saw a healthy increase to 137.5 billion yen, supported by higher retained earnings and a significant recovery in unrealized gains on securities, which moved from a negative position to a surplus of 7.5 billion yen. Based on these mid-year results, the full-year forecast for fiscal year 2020 anticipates continued growth. Net sales are projected to reach 51 billion yen, representing a 19.6% increase over the previous full year, while net income is expected to rise by 17.6% to 18 billion yen. These projections suggest a positive outlook for the remainder of the fiscal year, anchored by the strong momentum in the core entertainment and software business.

market-analysis market-forecast japan

Koei TecmoJan 2020

Report

Games Monitor: The Netherlands 2020 Update – COVID Impact

This update provides an analysis of the Dutch video game industry’s performance during 2020, specifically examining the operational and economic impacts of the COVID-19 pandemic. The findings are based on a survey of over 100 industry professionals conducted in late 2020, supplemented by desk research and database updates. The report tracks industry growth, employment trends, and the shift in business dynamics necessitated by global lockdowns. The Dutch games sector demonstrated resilience, growing from 575 companies in 2018 to 615 by the end of 2020, with total employment reaching approximately 4,000 jobs. While the industry largely transitioned to remote work with minimal impact on output quality, the pandemic created a divide between business-to-consumer (B2C) and business-to-business (B2B) entities. B2C entertainment companies generally benefited from increased consumer demand for home-based entertainment. Conversely, B2B and applied game developers faced significant challenges in the spring of 2020 as client projects were paused or canceled, though some firms in the healthcare sector identified new opportunities. Operational challenges were primarily centered on human resources and networking. While productivity remained stable for most, employee engagement declined due to the loss of informal office culture, and nearly half of respondents reported increased stress levels. The absence of physical industry events hindered the establishment of new business relationships, with one-third of respondents unable to pursue new business opportunities effectively. Despite these hurdles, the industry maintained its growth trajectory, supported by government labor cost subsidies that assisted approximately 85 companies during the initial lockdown phases. Overall, the sector proved adaptable, leveraging digital infrastructure to sustain operations while navigating a volatile market environment.

market-analysis employment europe+2

Dutch Game GardenJan 2020

Report

2020 Global Games Market Report

The 2020 Global Games Market Report provides a comprehensive analysis of the video game industry during a landmark year defined by the COVID-19 pandemic and the transition to next-generation consoles. The central thesis posits that gaming has evolved beyond simple entertainment to become a primary social network and a precursor to the "metaverse," with interactive virtual spaces increasingly replacing traditional social media for younger generations. Key findings indicate that the global games market was projected to generate $159.3 billion in 2020, representing a 9.3% year-on-year increase. Mobile gaming remained the largest segment, accounting for $77.2 billion (48% of the market), driven by low barriers to entry and the rise of hypercasual titles. Console and PC segments followed with $45.2 billion and $36.9 billion respectively. Geographically, the Asia-Pacific region dominated the landscape, generating $78.4 billion—nearly half of all global revenues—while the Middle East and Africa emerged as the fastest-growing region. By the end of 2020, the global player base was expected to reach 2.7 billion, with forecasts suggesting the market would surpass $200 billion and 3 billion players by 2023. The scope of the analysis covers 30 key markets representing over 90% of global revenues, with data segmented by region (Asia-Pacific, North America, Europe, Latin America, and Middle East/Africa) and platform. Methodology relies on a top-down predictive model integrating macroeconomic data, financial reports from over 100 public companies, and primary consumer research involving 62,500 respondents. The report concludes that while lockdown measures provided a short-term surge in engagement and revenue, the industry faces long-term shifts toward platform-agnostic cloud gaming and subscription models. Additionally, it highlights the successful globalization of Chinese gaming firms, which pivoted to international markets following domestic regulatory freezes, now leading the industry in mobile development and cross-border investment.

market-analysis market-forecast player-behavior+1

NewzooJan 2020

Financial

Summary of Main Supplementary Explanations Questions and Answers at the FY2020 First Quarter GREE Results Briefing

GREE’s financial performance for the first quarter of fiscal year 2020 reflects a transitional period characterized by strategic portfolio adjustments and a shift toward global distribution. The quarter experienced a sequential decline in sales, primarily attributed to a reactive drop following major anniversary events in the previous quarter and the strategic transfer of specific titles intended to streamline the game operation business. Despite these headwinds, the outlook for the second quarter remains cautiously optimistic, with projected operating income of approximately 0.5 billion yen. While browser game revenue continues to trend downward, mainstay titles are expected to perform strongly, supported by increased advertising investment in high-potential assets. The strategic focus has shifted toward improving profitability through cost-cutting measures and the expansion of the title lineup. This includes a robust commitment to international markets, supported by a newly developed system capable of simultaneous global releases. However, the timing for specific overseas launches, such as the distribution of SINoALICE, remains contingent on local partnerships and regulatory approvals, particularly in China. Challenges persist in media-mix strategies, as evidenced by the underperformance of AFTERLOST - Shoumetsu Toshi, which failed to meet expectations in attracting new users while maintaining the existing fan base. Future growth is increasingly tied to the development of the REALITY platform and the advancement of 5G technology. Rather than pursuing aggressive immediate growth, the current strategy emphasizes the steady expansion of the content portfolio and the enhancement of platform functionality to prepare for a more robust infrastructural environment. This long-term approach aims to increase product lifetime value while navigating the evolving landscape of mobile gaming and virtual platforms. Overall, the findings indicate a focus on operational efficiency and global readiness as the primary drivers for upcoming fiscal periods.

market-analysis market-forecast monetization+1

GREEOct 2019

Financial

Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2019

KLab Inc. reported a significant decline in financial performance for the first quarter of the fiscal year ending December 31, 2019, covering the period from January 1 to March 31, 2019. Consolidated revenue fell 18.4% year-over-year to 6.47 billion yen, primarily driven by declining revenue from the title Love Live! School Idol Festival. This contraction in the top line led to sharper decreases in profitability: operating income dropped 70.9% to 391 million yen, and profit attributable to owners of the parent fell 63.2% to 296 million yen. The company’s cost of sales and selling, general, and administrative expenses also decreased by 8.3% and 5.2% respectively, largely due to lower royalties, commissions, and reduced advertising spend. Despite the drop in quarterly earnings, total assets increased by 2.3 billion yen to 21.5 billion yen, fueled by higher operating investment securities and software in progress. Net assets rose to 16.0 billion yen, influenced by the inclusion of non-controlling interests from a newly consolidated subsidiary. Geographically focused on the Japanese market with global reach through its mobile titles, KLab’s operations are divided between its core Game Business and Other Businesses, which now includes a venture capital segment following the consolidation of KVP Inc. and its associated funds. Looking ahead, the company maintains a range-based forecast for the full fiscal year 2019, projecting revenue between 32 billion and 40 billion yen. Management noted that while financial forecasting has become more accurate, the inherent volatility of new game success remains a critical factor in achieving these targets.

investment market-forecast japan+1

KLabMay 2019

Financial

Financial Results Briefing for FY2019 First Quarter Transcript

This financial briefing outlines the performance and strategic direction of GREE, Inc. for the first quarter of fiscal year 2019. The company reported net sales of 18.2 billion yen and an operating income of 1.6 billion yen, which exceeded internal forecasts despite a slight quarter-on-quarter decline in sales. This decline was attributed to a high baseline in the previous quarter driven by major title anniversaries. Net income saw substantial growth due to the sale of investment securities and the absence of previous impairment losses. The strategic focus centers on three pillars: game business expansion, live entertainment, and advertising media. In the gaming sector, the company is prioritizing global distribution and multi-platform reach. Key activities include the North American, South Korean, and Taiwanese launches of DanMachi via self-distribution, which aims to improve profit margins compared to partner-led models. The company also released Wild Arms: Million Memories and expanded into messenger-based gaming via the LINE Quick Game platform. Future growth is supported by a pipeline of four titles in development and a push into the Nintendo Switch market. The live entertainment segment highlights the full launch of REALITY, a dedicated live-streaming platform for VTubers. This ecosystem is being bolstered by the VTuber Fund and strategic partnerships with King Records and Idea Factory to develop music projects and live events. In the advertising and media segment, the company is focusing on strengthening the community potential of its LIMIA and MINE platforms. Looking ahead to the second quarter, the company issued a range-based forecast of 1 to 1.5 billion yen in operating income to account for the inherent volatility of new overseas self-distribution efforts and fluctuating user transactions in existing titles like Another Eden.

market-forecast monetization japan+1

GREE Inc.Mar 2019

Financial

Fiscal Year 2019 Fourth Quarter Financial Results Briefing

GREE, Inc. reported its financial results for the fiscal year ending June 2019, achieving net sales of ¥70.9 billion and an operating income of ¥5.5 billion. The fourth quarter performed in line with forecasts, generating ¥17.4 billion in net sales and ¥1.3 billion in operating income. This performance was driven by the sustained success of existing game titles, particularly during anniversary events for SINoALICE, Another Eden, and SYMPHOGEAR, alongside strategic expansions into overseas markets. The strategic framework for the period focused on three core pillars: gaming, live entertainment, and advertising and media. In the gaming segment, the company utilized an "engine, IP, global" strategy to improve profitability. This involved transitioning toward self-distribution and first-party IPs to capture higher margins, while expanding onto multiplatform environments including Nintendo Switch and Facebook Games. Geographically, the company successfully launched titles in North America, Europe, and parts of Asia, with plans to enter the Chinese market pending regulatory approval. Looking toward fiscal year 2020, the company is prioritizing long-term operational stability and aggressive investment in emerging sectors. The live entertainment division is centered on the REALITY platform, a VTuber distribution service, where investments will focus on production, platform functionality, and business solutions. While the advertising and media segment remains in an upfront investment phase, losses are expected to narrow as vertical media portfolios expand. For the upcoming fiscal year, the company plans to launch two new titles and has four to six additional projects in development for 2021 and beyond. To ensure shareholder returns, a new dividend policy based on a 2% Dividend on Equity (DOE) ratio has been established.

investment market-forecast japan

GREEJan 2019

Newzoo’s Global Games Market Report 2021

Next-Gen Mobile Games: The Arrival of Cross-Platform and Evolution of High-Fidelity Mobile Games

Beyond 2021: Where Does Gaming Go Next?

Libro Blanco del Desarrollo Español de Videojuegos 2021

Análisis del Impacto del COVID‑19 y Mejores Prácticas de Teletrabajo en el Sector de los Videojuegos: Dec 2020

FY2020 Presentation Material

FY2021 First Quarter Financial Results

Sales for First Half of FY 2020/21

Integrated Report 2020

Creative Industries Statistics: United Kingdom (August 2020)

3Q FY2020 Presentation Material

FY2020 Third Quarter Financial Results

FY2020 Fourth Quarter Financial Results Briefing

Financial Highlights for the 2nd Quarter of the Fiscal Year Ending March 2021 (FY2020)

Games Monitor: The Netherlands 2020 Update – COVID Impact

2020 Global Games Market Report

Summary of Main Supplementary Explanations Questions and Answers at the FY2020 First Quarter GREE Results Briefing

Consolidated Financial Results for the First Quarter of the Fiscal Year Ending December 31, 2019

Financial Results Briefing for FY2019 First Quarter Transcript

Fiscal Year 2019 Fourth Quarter Financial Results Briefing