Aiming Inc.

Business Details

Aiming Inc. operates under the mission of "Aiming fans around the world," primarily developing, distributing, and operating free-to-play online games for smartphones. The business consists of two segments: the "Online Game Distribution Service," which is mainly driven by in-app purchase revenue, and the "Online Game Development/Operation Contracting Service," which involves planning, development, and operation contracted by other companies. The company's strength lies in advanced communication technology for the MMO genre, and it operates primarily on the App Store and Google Play platforms. Major customers include Apple Inc. (32.8% of net sales), Google LLC (22.1%), and SB Payment Service Co., Ltd. (10.6%).

Recent Overview

In Q1 FY2026, both net sales and operating profit declined significantly year on year

In the first quarter of FY2026 (ending March 2026) (January to March 2026), net sales were ¥3,249 million (down 37.1% year on year), and operating profit fell sharply to ¥241 million (down 82.2% year on year). Investment loss under the equity method was ¥91 million (significantly reduced from ¥938 million in the same period last year), resulting in ordinary profit of ¥191 million (down 61.9% year on year). As a new title, a live-action romance simulation game co-produced with TV Asahi began distribution on March 4, 2026. As a subsequent event, an additional investment (¥261 million, with the equity stake remaining unchanged at 42.85%) was completed on April 28, 2026, in Betimo Co., Ltd., an equity-method affiliate. The cumulative earnings forecast for the second quarter remains challenging, with net sales projected at ¥6,745 million (down 25.0% year on year) and operating profit at ¥327 million (down 82.2% year on year).

Key Products

Growth Drivers

• Revenue maintenance through anniversary and seasonal events and new character additions for titles in service (Dragon Quest Tact, Kage no Jitsuryokusha ni Naritakute! Master of Garden, etc.)
• Securing a stable revenue base through the Online Game Development/Operation Contracting Service
• Expansion of new titles through IP acquisition and joint business schemes (a title co-produced with TV Asahi began distribution in March 2026)
• Expected sales contribution from new titles scheduled for distribution from the following quarter onward
• Maximization of group profit through enhanced marketing and expanded app functionality via additional investment (¥261 million) in Betimo Co., Ltd., an equity-method affiliate

Risks

• Intensifying competition in the domestic smartphone online game market (increasing entry of high-quality overseas titles into the domestic market)
• Increasing cost pressure due to prolonged game development periods and rising development costs
• Dependence on major platforms (Apple Inc. and Google LLC) for revenue (a combined 54.9% of net sales)
• Risk of natural KPI decline due to the prolonged operation of existing flagship titles (Ken to Mahou no Logres continues to be operated long-term)
• Risk of continued investment losses under the equity method (¥91 million in Q1 FY2026 versus ¥938 million in the same period last year)
• Cumulative earnings forecast for Q2 FY2026 indicates continued significant deceleration, with net sales of ¥6,745 million (down 25.0% year on year) and operating profit of ¥327 million (down 82.2% year on year)
• Non-controlling interests turned negative (-¥15 million), posing a risk of expanding losses at subsidiaries