Changes in Major Management Indicators, etc.


Summary of Results by Segment

Game Segment

In the gaming business, existing long-term operational titles performed well throughout the year and contributed to our revenue. In this segment, we aim to layer revenues not only from operational titles but also through the release of new titles. However, the performance of the newly released titles fell short of expectations, leading us to review our operational and development portfolio. As a result, we decided to close two new titles released at the end of the previous fiscal year and in the first quarter of the current fiscal year, and to discontinue the development of one title that was in the unpublished/prototype stage.

Regarding net sales, although our main IP titles performed well, other operational titles performed below the previous year's levels, resulting in a decrease compared to the previous fiscal year.

As for profits, in addition to the aforementioned decrease in sales, there were increased expenses associated with the release of two new self-published titles at the end of the previous fiscal year and in the first quarter of the current fiscal year, leading to a decrease compared to the previous fiscal year.
As a result, segment sales amounted to 9,349,181 thousand yen (down 11.1% from the previous fiscal year), and segment profit amounted to 1,896,650 thousand yen (down 34.7%). In this segment, our core business, we will continue to strive to maintain stable revenue from existing operational titles and aim to increase sales and profits through contributions from new titles to be released in the future.


Media Segment

In the media business, we are engaged in publishing and video production with the aim of owning, nurturing, and monetizing IP. We publish monthly from our light novel label "DRE Novels" and comic label "DRE Comics." Additionally, leveraging our expertise in internet services and advanced technologies, we offer new business developments in the Web3 domain, as well as fan marketing support services Rooot and Fanflu using social media, and the load testing service Mx.Load.

Regarding net sales, there was an increase compared to the previous fiscal year due to the start of publications from "DRE Novels" and "DRE Comics," as well as the sale of NFT collections for the blockchain game Eternal Crypt - Wizardry BC -, which is co-developed with another company.

As for profits, new business areas such as publishing, video, and Web3 are steadily progressing, but losses increased from the previous fiscal year due to the ongoing cost pressures.

As a result, segment sales were 433,517 thousand yen (up 52.2% from the previous year) and segment loss was 993,611 thousand yen (segment loss of 621,957 thousand yen in the previous year). In this segment, we will continue to invest in achieving our medium-term goals.