Drecom Co.,Ltd.
3793・Growth Market・Information & Communication
Game Business
Drecom's core segment. Centered on the development and operation of IP Games for smartphones and PCs.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Net Sales | ¥16,797 million | ¥11,924 million | ↑ |
| Segment Profit | ¥1,277 million | ¥976 million | ↑ |
| Segment Assets | ¥3,205 million | ¥8,102 million | ↓ |
| Depreciation and Amortization | ¥1,043 million | ¥498 million | ↑ |
| Impairment Loss | ¥2,040 million | ¥1,122 million | ↑ |
| Increase in Property, Plant and Equipment and Intangible Assets | ¥1,283 million | ¥1,787 million | ↓ |
| Share of Consolidated Net Sales | 95.7% | 94.2% | ↑ |
Business Details
The core business is the planning, development, and operation of games for smartphones and PCs & consoles. IP Games (for Smartphones), which leverage third-party IP, are positioned as the growth foundation, and are developed under three formats: (1) self-distribution, (2) formats where the IP partner handles distribution and marketing, and (3) revenue-sharing formats. At the end of FY2026 (ending March 2026), two consolidated subsidiaries (Studio Rex, Inc. and BlasTrain, Inc.) were sold, changing the scope of consolidation. This is the core segment, accounting for 95.7% of consolidated net sales.
Recent Overview
Net sales rose 40.9% on the strength of Wizardry Variants Daphne, but a large impairment loss of ¥2,040 million was recorded.
In FY2026 (ending March 2026), Game Business segment net sales were ¥16,797 million (up 40.9% year on year), and segment profit was ¥1,277 million (up 30.8% year on year). Strong performance of the self-distributed title Wizardry Variants Daphne around its first anniversary drove the increase in sales, while a total of ¥2,040 million in impairment losses was recorded, comprising impairment on a mobile game title released at the end of the prior period that fell short of sales expectations, and impairment resulting from a revised profitability outlook for a title under development for PC & consoles. In addition, at the end of FY2026 (ending March 2026), two consolidated subsidiaries (Studio Rex, Inc. and BlasTrain, Inc.) were sold, causing segment assets to decrease by ¥4,897 million year on year. Major customers were Apple, Inc. (¥4,742 million), Google LLC (¥4,394 million), and Bandai Namco Entertainment (¥2,702 million).
Key Products
Growth Drivers
- Revenue contribution from the continued strong performance of the self-distributed title Wizardry Variants Daphne
- Securing stable revenue by maintaining sales from the 9 game titles to continue operating in FY2027 (ending March 2027)
- Acquisition of new revenue sources through the rollout of pay-to-own PC & console game titles
- Diverse revenue sources with Apple, Inc., Bandai Namco Entertainment, and Google LLC as major customers
- Improved profit margins through narrowing losses on unprofitable titles and optimizing operating costs and advertising expenses
- Risk diversification in development and a revenue-sharing model through the use of third-party IP, centered on the IP Games strategy
Risks
- Risk that sales of new titles fall below expectations (an impairment was recorded due to a mobile title released at the end of the prior period falling short of expectations)
- Risk of impairment of software assets (an impairment loss of ¥2,040 million was recorded for the Game Business alone in FY2026, ending March 2026)
- Decrease in revenue attributable to the two consolidated subsidiaries sold at the end of FY2026 (ending March 2026)
- Risk of a shrinking revenue base due to weakness in existing operating titles (some titles performed below the prior period)
- Risk of increased costs, such as commissions paid and advertising expenses, associated with an increase in self-distributed titles
- Investment recovery risk in the development of new titles for PC & consoles
Last updated: June 22, 2026