CAVE Interactive CO.,LTD.
3760・Standard Market・Information & Communication
Game Business
The flagship segment centered on smartphone game development and operation, accounting for approximately 92% of group revenue
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue | ¥11,021 million | ¥12,824 million | ↓ |
| Segment profit/loss | △¥626 million (loss) | ¥1,115 million (profit) | ↓ |
| Segment assets | ¥1,417 million | ¥4,089 million | ↓ |
| Depreciation | ¥128 million | ¥326 million | ↓ |
| Impairment loss | ¥2,653 million | ¥1,362 million | ↑ |
| Revenue from MIXI | ¥6,518 million | ¥7,262 million | ↓ |
| Revenue from Apple Inc. | ¥2,237 million | ¥3,478 million | ↓ |
| Revenue from Google LLC | ¥1,279 million | ¥1,672 million | ↓ |
Business Details
A game business segment operated by Cave Co., Ltd. and DeNGE Co., Ltd. In addition to the development, operation, and contract development of smartphone games, the segment also engages in the planning, production, sale, and licensing of derivative works. Key titles include "Gothic wa Mahou Otome ~Sassato Keiyaku Shinasai!~," "Touhou Gensou Eclipse," "Monster Strike" (operated by DeNGE), and "Kingdom Ran -Tenka Touitsu e no Michi-." Major customers are MIXI (54.3% of revenue), Apple Inc. (18.6%), and Google LLC (10.7%), with revenue from platform-based billing accounting for the majority of sales.
Recent Overview
Segment fell into a loss due to large-scale impairment charges, and software assets were substantially reduced
In the Game Business for FY2026 (ending March 2026), revenue was ¥11,021 million (down 14.1% year-on-year) and the segment posted a loss of ¥626 million (versus segment profit of ¥1,115 million in the prior period), a significant deterioration. An impairment loss of ¥2,653 million was recorded due to the impairment treatment of "OUTRANKERS" and other titles, and the balance of software and software in progress was sharply reduced from ¥2,201 million in the prior period to ¥30 million. "Monster Strike," operated by consolidated subsidiary DeNGE, continued to perform well and contributed to revenue. Development of the new Steam title "Shinyaku Dodonpachi Daifukkatsu" is underway, with revenue contribution expected from the next fiscal period onward.
Key Products
Growth Drivers
- Continued stable revenue through popular IP collaboration events for "Monster Strike" at consolidated subsidiary DeNGE
- Enhanced user engagement and retention of existing users through 11th anniversary initiatives and a fan meeting for "Gothic wa Mahou Otome"
- Increased brand awareness through the game system overhaul update and real-world event participation for "Touhou Gensou Eclipse"
- Strengthened user engagement and maintenance of a long-term revenue base through the 8th anniversary large-scale event for "Kingdom Ran -Tenka Touitsu e no Michi-"
- Acquisition of a new revenue source through the release of the new Steam title "Shinyaku Dodonpachi Daifukkatsu" (first title in the Refine Project)
- Limited additional impairment risk due to the substantial reduction of software assets, with normalization toward a profitable structure expected
- Cost reductions and operational efficiency improvements across the group through AI adoption
Risks
- High dependence on revenue from MIXI (54.3%), creating concentration risk on a single customer
- Uncertainty regarding the monetization of the new title "Shinyaku Dodonpachi Daifukkatsu" on the Steam platform
- Risk of intensifying competition in the smartphone game market and natural decline of existing titles
- Risk of additional valuation losses on remaining software in progress (¥29 million) and investment securities/capital contributions
- Foreign exchange risk in global expansion and uncertainty regarding penetration of overseas markets
- Group performance's dependence on the revenue trends of "Monster Strike," the flagship title of consolidated subsidiary DeNGE
Last updated: August 28, 2025