CyberStep Holdings, Inc.
3810・Standard Market・Information & Communication
Online Game Business
Online Game Business centered on Toreba faces revenue decline and continued losses amid intensifying competition
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (external customers) | ¥2,080 million | ¥2,198 million | ↓ |
| Segment loss | △¥435 million | △¥604 million | ↑ |
| YoY revenue change | △5.4% | △21.6% | ↑ |
| Impairment loss | ¥720 million | ¥4 million | ↓ |
Business Details
The company operates self-operated online games domestically and internationally, centered on its flagship service, Online Crane Game Toreba. In the fiscal year under review, revenue declined due to intensifying user acquisition competition and a review of part of the operating structure, although the segment loss improved year on year due to continued company-wide cost reductions. It continues to be positioned as the core revenue segment even after the transition to a holding company structure.
Recent Overview
Revenue declined amid intensifying competition, but cost reductions improved the segment loss by ¥169 million year on year
In the Online Game Business for FY2026 (ending May 2026), revenue from external customers was ¥2,080 million (down 5.4% year on year) due to intensifying user acquisition competition and a review of part of the operating structure. Meanwhile, due to continued company-wide cost reductions, the segment loss improved by ¥169 million to ¥435 million, from ¥604 million in the prior period. On a consolidated basis, an impairment loss of ¥720 million and an allowance for doubtful accounts of ¥1,250 million related to the consideration for the acquisition of shares in 3rd Inc. were recorded, expanding net loss attributable to owners of the parent to ¥3,417 million.
Key Products
Growth Drivers
- Enhancing the ability to attract users to Toreba through expansion of the prize lineup and utilization of popular IP content
- Acquiring users through content expansion and influencer collaborations for existing titles such as Terabit
- Acquiring users in overseas markets by promoting global service expansion
- Improving profitability through company-wide cost reductions and review of the operational management structure
- Diversifying the revenue base through the development and release of new game titles
- Strengthening the independence of each Group company and accelerating decision-making through the transition to a holding company structure
Risks
- Growing difficulty in acquiring and retaining users due to intensifying new entrants among competitors in the online crane game market
- Existence of material uncertainty regarding the going concern assumption due to significant operating losses and ordinary losses recorded for six consecutive fiscal years
- Risk of increased development costs due to the prolonged development period for new titles
- Risk of decline in overseas revenue amid intensifying global competitive conditions
- Continued significant concern regarding cash flow, with operating cash flow at negative ¥3,127 million
Last updated: August 29, 2025