Nippon Ichi Software, Inc.
3851・Standard Market・Information & Communication
Entertainment Business
Core business centered on the development and sale of home video game software, accounting for approximately 97% of consolidated group sales
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Sales | ¥3,486 million (FY2026, ending March 2026) | ¥5,203 million (FY2025, ended March 2025) | ↓ |
| Segment Operating Profit | ¥38 million (FY2026, ending March 2026) | ¥207 million (FY2025, ended March 2025) | ↓ |
| Segment Assets | ¥7,188 million (FY2026, ending March 2026) | ¥6,981 million (FY2025, ended March 2025) | ↑ |
| Depreciation Expense | ¥41 million (FY2026, ending March 2026) | ¥34 million (FY2025, ended March 2025) | ↑ |
| Increase in Tangible and Intangible Fixed Assets | ¥41 million (FY2026, ending March 2026) | ¥220 million (FY2025, ended March 2025) | ↓ |
Business Details
Handles home video game software, related merchandise, smartphone content, licensing revenue, and contract development for other companies' titles. In addition to domestic package sales, the business conducts digital distribution through PlayStation Network, Nintendo eShop, and Steam, as well as localization and sales for North America, Europe, and Asia. Subsidiary NIS America, Inc. is responsible for overseas sales. The company also operates the card game shop "Prinny Club." In FY2026 (ending March 2026), sales decreased 33.0% year-on-year to ¥3,486 million, and operating profit also contracted significantly to ¥38 million.
Recent Overview
In FY2026 (ending March 2026), sales declined 33.0% year-on-year and operating profit declined sharply by 81.6%
In FY2026 (ending March 2026), the Entertainment Business saw performance deteriorate significantly, with sales of ¥3,486 million (down 33.0% year-on-year) and operating profit of ¥38 million (down 81.6% year-on-year). Four titles were released domestically, and overseas, NIS America, Inc. released "Disgaea 7 Complete" for Nintendo Switch2, but the reduced title lineup appears to be the main cause of the sales decline. On the other hand, the consolidated earnings forecast for FY2027 (ending March 2027) anticipates a recovery, with sales of ¥4,784 million (up 32.6% year-on-year) and operating profit of ¥296 million.
Key Products
Growth Drivers
- Expansion of new title and back-catalog repeat sales in overseas markets (US and Europe)
- Continued sales contribution from digital distribution (PlayStation Network, Steam, Nintendo eShop)
- Acceleration of overseas expansion through simultaneous domestic and overseas release systems
- Strengthening domestic sales through investment in new IP creation and quality improvement
- Efficiency gains in game development through generative AI utilization and overall market growth
- Expansion of title demand accompanying the spread of new hardware such as Nintendo Switch2
Risks
- Risk of significant sales fluctuation due to a decrease in the number of package titles released (a 33.0% year-on-year decline was recorded in FY2026, ending March 2026)
- Risk of deteriorating profitability due to increased development costs and persistently high SG&A expenses (operating profit declined 81.6% year-on-year in FY2026, ending March 2026)
- Risk linked to sales trends of home video game consoles (major business partners are concentrated in home video game software-related industries)
- Risk of revenue dependence on specific customers
- Foreign exchange risk (more than half of sales are directed to the US and Europe, pressuring profitability during yen appreciation phases)
- Risk of recording extraordinary losses (in FY2026, ending March 2026, an impairment loss of ¥57 million and a provision for retirement benefits for directors of ¥151 million, among others, were recorded)
Last updated: June 26, 2026