Silicon Studio Corporation
3907・Standard Market・Information & Communication
Business
Silicon Studio Inc. is a real-time graphics specialist company founded in 1999. It comprises two segments: the Development Promotion & Support Business, which develops and sells proprietary middleware such as YEBIS and Enlighten, provides contract development and digital twin construction support utilizing game engines, and offers Online Solutions; and the Human Resources Business, which provides recruitment and staffing services specialized in the game, video, and CG industries. Major customers include game makers such as Nintendo Co., Ltd. (17.1% of net sales), and the company is expanding its business domain into industries such as automotive, civil engineering/construction, and manufacturing. In December 2025, the company transitioned from the TSE Growth Market to the Standard Market.
Business Model
In the Development Promotion & Support Business (net sales of ¥2,661 million), the company earns revenue by providing, on a one-stop basis, middleware license sales and customization, contract development leveraging game engines, and Online Solutions operating 24 hours a day, 365 days a year. In the Human Resources Business (net sales of ¥1,641 million), revenue sources are recruitment fees and staffing fees generated by leveraging a registrant database of approximately 30,000 people. The company treats the operating margin on net sales as a key management indicator, with efficient, profitability-focused management as its basic policy.
Company Strengths
The company holds multiple proprietary middleware products—including YEBIS (post-effects), Enlighten (global illumination), and Bone Dynamics—developed by a team of programmers who present papers at Eurographics, the Information Processing Society of Japan, and other academic venues. In August 2025, the company released a fully renewed version of YEBIS, achieving continuous product enhancement.
Since launching staffing services in 2003, the company has built a Human Resources database specialized in the game, CG, film/video, and web production industries. As of the end of November 2025, the number of registrants stood at approximately 30,000, and the number of successful paid job placements for FY2025 (ending November 2025) was 277 (up 4.1% year on year). High-precision matching by RAs and CAs with specialized industry knowledge forms a competitive advantage.
The company applies real-time 3DCG and game engine technologies cultivated in the entertainment industry to industrial sectors such as automotive, civil engineering/construction, manufacturing, aerospace, defense, and healthcare. In FY2025 (ending November 2025), even after the completion of a large-scale game environment development project, industrial-related projects remained solid, securing segment profit of ¥369 million for the Development Promotion & Support Business.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal years, revenue moved sideways from ¥3,986 million (FY2021) to ¥4,554 million (FY2023) to ¥4,303 million (FY2025). Operating profit recovered from a loss in FY2021 to ¥381 million in FY2022, then stabilized at a low level in the ¥140-150 million range in FY2024 and FY2025. However, in the first half of FY2026 (ending November 2026) (December 2025 to May 2026), performance deteriorated sharply, with revenue of ¥1,909 million (down 13.8% year on year), an operating loss of ¥185 million, and a net loss for the interim period of ¥220 million. This resulted from a combination of factors: a provision for loss on orders (¥75 million) related to a 3DCG video production project, failure to fill the gap left after the completion of a large key project, and the termination of services for a major Online Solutions client. The full-year forecast now anticipates a swing into losses, with revenue of ¥4,231 million (down 1.7% year on year), an operating loss of ¥200 million, and a net loss of ¥228 million (loss per share of ¥83.33). Cash and cash equivalents stood at ¥1,177 million at the end of the interim period, down ¥407 million from the end of the previous fiscal year, indicating a shrinking financial cushion.
Growth Strategy
Revenue diversification through expanded technology transfer to non-entertainment industries and the launch of the new Physical AI business
Leveraging expertise in building virtual space simulation environments using game engines, the company has newly launched the Physical AI Simulation Platform Business in earnest. Against a backdrop of increasing inquiries from industries such as automotive, civil engineering/construction, and manufacturing, the company aims to establish a new revenue source.
Through enhancement of the website, data-analysis-based initiatives, and expansion of the inside sales structure, the company is promoting the acquisition of customers in industries outside the entertainment sector. It also aims to explore new industry sectors such as aerospace, defense, medical, and security.
In response to declining hiring appetite among game companies, the company is promoting client development in adjacent areas such as the streaming entertainment industry. It is also working to improve service quality to enhance satisfaction for both client companies and job seekers. While maintaining the mid-term segment profit margin of 17.5%, the company aims to recover its sales scale.
For the 3DCG video production project ordered last fiscal year, revenue is scheduled to be recognized in a lump sum in the second half of the fiscal year. A provision for loss on order receipt of ¥75 million has already been recorded, and the resolution of loss risk through project completion, along with its contribution to second-half results, is a precondition for achieving full-year profitability.
Last updated: July 17, 2026