CRI Middleware Co., Ltd.
3698・Standard Market・Information & Communication
Game Business
Revenue base segment centered on audio and video middleware for the gaming industry
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (cumulative interim period) | ¥937 million | ¥949 million | ↓ |
| Segment profit (cumulative interim period) | ¥87 million | ¥129 million | ↓ |
| Segment profit margin (cumulative interim period) | 9.3% | 13.6% | ↓ |
Business Details
The segment mainly licenses audio/video-related middleware "CRIWARE" and image optimization solution "OPTPiX" to the gaming industry, and also conducts audio production (voice recording, etc.) through its subsidiary Two Five Inc. The core business model accumulates licensing revenue across three regions—Japan, China, and Europe/US—and functions as a source of technology and funding for the group as a whole. R&D investment in the online communication middleware "CRI TeleXus" is also continuously carried out within this segment.
Recent Overview
Both revenue and profit declined year on year due to upfront overseas investment and weakness in Europe/US
In the interim period of FY2026 (ending September 2026), Game Business revenue was ¥937 million (down 1.2% year on year), and segment profit was ¥87 million (down 32.6% year on year). Domestic licensing revenue declined slightly as the impact of the decrease in Q1 remained, despite securing several bulk license contracts in Q2. In China, licensing revenue increased as the results of the account sales strategy began to materialize, while in Europe and the US, revenue declined as the acquisition of adopted titles did not proceed as planned. Audio production at Two Five Inc. saw revenue growth driven by strong large-scale projects from China. On the profit side, upfront investment for strengthening overseas expansion (such as increased sales staff) weighed heavily, resulting in a significant profit decline.
Key Products
Growth Drivers
- Securing multiple bulk license contracts in Japan through strengthened proposal-based sales (several contracts secured in Q2)
- Increase in licensing revenue as the results of the account sales strategy in the Chinese market materialize
- Continued receipt of large-scale voice recording orders for Chinese companies by Two Five Inc. and steady repeat orders from existing clients
- Mid- to long-term market development in Europe and the US through a combination of direct sales and distributor sales
- Creation of new revenue sources through commercialization of "CRI TeleXus" (expansion into the online communication market)
- Mid- to long-term market development through strengthened sales of video-related middleware domestically and overseas and increased overseas sales staff
Risks
- Risk that the acquisition of adopted titles in the Europe/US market does not proceed as planned (materialized in the current interim period)
- Risk of upfront investment and profit pressure in the short term due to increased costs such as additional sales staff for strengthening overseas expansion
- Uncertainty regarding the continuity of new adoption deals in the Chinese market
- Large fluctuations in revenue between periods due to concentration of large worldwide title contracts in specific periods
- Cost burden risk in case of delayed commercialization, as R&D investment in "CRI TeleXus" and other projects is recorded in this segment
- Impact on overseas revenue from trade policy and foreign exchange fluctuations in various countries
Last updated: December 15, 2025