Akatsuki Inc.

Business Details

The company provides mobile games for smartphones through the app markets operated by Apple and Google, and also plans, produces, and distributes vertical-scroll full-color comics. Its flagship title is "Dragon Ball Z Dokkan Battle," developed in collaboration with Bandai Namco Entertainment. The company handles planning, development, and operation in-house end-to-end, and derives its competitive advantage from implementing measures based on analysis of user behavior history and accumulating related know-how. This is the core segment, accounting for approximately 85.6% of consolidated net sales. Note that, from the current fiscal year, the previous two-segment classification of "Games" and "Comics" was consolidated into a single "Games & Comics" segment.

Recent Overview

Despite lower revenue from existing titles, profit improved significantly, up 92.9% year on year, owing to cost reductions and lower R&D expenses

In the Games & Comics business for FY2026 (ending March 2026), although the new title "Kaiju No. 8 THE GAME" contributed to revenue for six months, results fell short of the prior-year period, when existing game titles performed at a high level, resulting in a slight decline in sales to ¥22,134 million (down 1.1% year on year). On the other hand, segment profit increased substantially to ¥7,972 million (up 92.9% year on year), aided by cost reductions from a review of the business portfolio and greater efficiency in operating existing titles, as well as lower R&D expenses following the completion of a cycle of large-scale new development. "Dragon Ball Z Dokkan Battle" saw a well-received domestic 11th-anniversary commemorative event, and through global collaboration measures achieved the No. 1 spot in store sales rankings in seven countries and regions.

Key Products

Growth Drivers

• Maximization of LTV through large-scale domestic and overseas events for "Dragon Ball Z Dokkan Battle" and continuation of global collaboration measures
• Full-year earnings contribution from "Kaiju No. 8 THE GAME" from FY2027 (ending March 2027) onward
• Structural improvement in profit margin through reduced R&D expenses following the completion of a cycle of large-scale new development
• Reduced cost burden from lower platform fees following the enforcement of the Smartphone Software Competition Promotion Act, among other factors
• Continued promotion of operational and development efficiency using AI
• Optimization of the business portfolio through greater efficiency in operating existing titles

Risks

• Risk of revenue concentration in the key title "Dragon Ball Z Dokkan Battle" and risk of natural revenue decline in existing titles
• Uncertainty regarding revenue stabilization associated with the continued operation of the new title "Kaiju No. 8 THE GAME"
• Risk of user attrition from existing titles due to intensifying competition in the mobile game market
• Risk of changes to terms of service or fee policies by platform operators (Apple and Google)
• Risk of stricter legal regulation regarding game safety and soundness (e.g., minors' spending, real-money trading)
• Difficulty in forecasting results due to rapid short-term changes in the business environment (full-year earnings forecast not disclosed)