Nippon Ichi Software, Inc.
3851・Standard Market・Information & Communication
Business
Nippon Ichi Software, Inc. is a game software manufacturer founded in 1993 and headquartered in Kakamigahara City, Gifu Prefecture. The company comprises two segments: the Entertainment Business (approximately 97% of consolidated sales), centered on the development and sale of software for home video game consoles such as PlayStation and Nintendo Switch, and a university student dormitory business in Gifu Prefecture operated by consolidated subsidiary Tanoshimi Team. In addition to domestic package sales, the company handles digital distribution via PlayStation Network, Steam, and the Nintendo eShop, while its subsidiary, Overseas Localization & Sales (NIS America, Inc.), is responsible for localized sales in North America, Europe, and Asia. The company listed on JASDAQ in 2007 and transitioned to the TSE Standard Market in 2022. With six consolidated subsidiaries, the group handles game development, manufacturing, and sales on an integrated basis.
Business Model
The company plans and develops its own game titles in-house, generating revenue through domestic package sales and digital platform distribution. For overseas expansion, Overseas Localization & Sales (NIS America, Inc.) handles localization and sales for the North American and European markets, with repeat sales of past titles also serving as an ongoing revenue source. In addition, Licensing Out & Contract Development and operation of the Card Game Shop "Prinny Club" contribute to revenue. Working capital is primarily funded through internal resources, with a financial policy of minimizing borrowing from financial institutions.
Company Strengths
NIS America, Inc., established in 2003, is solely responsible for localization and sales in North America and Europe. In FY2026 (ending March 2026), sales to SONY INTERACTIVE ENTERTAINMENT AMERICA accounted for 11.4% of net sales. The company has also moved quickly to support new hardware, including the North American and European release of the Nintendo Switch2 version of "Disgaea7 Complete".
In addition to a trademark licensing agreement with Sony Interactive Entertainment (with an automatic renewal clause) and an agreement with Nintendo for Nintendo Switch (also with an automatic renewal clause), the company entered into a new licensing agreement for Nintendo Switch2 in October 2025, valid through March 2029. This secures stable access to major platforms.
As of the end of FY2026 (ending March 2026), the company held ¥4,183 million in cash and cash equivalents, substantially exceeding its interest-bearing debt balance of ¥1,672 million. Even amid a phase of consecutive losses, the company has maintained a working capital funding policy centered on its own funds, ensuring financial stability.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥5,717 million in FY2022 and has continued to decline since, falling 31.9% year on year to ¥3,606 million in FY2026 (ending March 2026). The operating loss widened to ¥409 million from ¥274 million in the prior period, marking two consecutive years of losses. In the Entertainment Business, revenue fell sharply to ¥3,486 million (down 33.0% year on year), and segment operating profit deteriorated significantly to ¥38 million (down 81.6% year on year). The Student Dormitory & Other Businesses posted revenue growth to ¥121 million (up 24.4% year on year), but the operating loss of ¥22 million persisted. As an external factor, the continued depreciation of the yen generated a foreign exchange gain of ¥168 million and an increase in the foreign currency translation adjustment account of ¥334 million, providing financial support. A return to profitability is projected for FY2027 (ending March 2027), but this is contingent on the realization of planned title launches.
Growth Strategy
Integrated strengthening of development capability, sales capability, and productivity, together with accelerated overseas expansion
In FY2026 (ending March 2026), four domestic titles were released ("Fuurai no Ki 5," "Renju," "Kyouran Makaizumu," and "Curse Warrior"). The company is promoting the use of generative AI to improve game development efficiency, aiming to achieve both suppression of development costs and improvement of quality. To achieve the FY2027 (ending March 2027) forecast of net sales of ¥4,784 million, enriching the title lineup is essential.
The company continues localization and sales for North America, Europe, and Asia through Overseas Localization & Sales (NIS America, Inc.). In FY2026 (ending March 2026), the Nintendo Switch2 version of "Disgaea7 Complete" was released for North America and Europe. The company is pursuing a strategy to capture growing title demand accompanying the spread of new hardware.
The company continues to strengthen digital distribution through PlayStation Network, the Nintendo eShop, Steam, and other platforms, aiming to build a stable revenue base not dependent on package sales. Operation of the Card Game Shop "Prinny Club" also continues, with efforts to diversify IP-related revenue.
Selling, general and administrative expenses decreased to ¥1,948 million in FY2026 (ending March 2026) from ¥2,227 million in the previous fiscal year, but the sharp decline in net sales led to an expanded operating loss. Excluding one-time expenses such as the ¥151 million provision for retirement benefits for directors, continuing structural cost reductions remains a challenge. The company is also promoting human resource development and internal organizational preparation in anticipation of future IFRS adoption.
Last updated: July 19, 2026