Executive Summary
Envalith had the opportunity to interview CFO and Director Mr. Mori, along with Mr. Oi (Vice Division Head, Business Success Division). HEROZ is at an inflection point in commercializing AI support for the entertainment industry as one of its priority focus areas, built on the game AI domain knowledge accumulated through shogi, chess, Go and similar titles. Its exhibit at the Tokyo Game Show is not merely a technology showcase; it sits at the core of the company's BtoB sales effort, with deal-origination explicitly set as the KPI. In BtoB, the shift from a contract-based model to a BEM (Business Embedded Model, or hands-on partnership) approach—embedding within the client organization from the proposal stage—has driven a substantial improvement in utilization rates and is powering revenue growth. With the full acquisition of VarioSecure now complete, the earnings base is also in place, and the company is moving into a phase of delivering both growth and profitability.
Message from the Company
This is true in any industry, but without overwhelming domain knowledge it is extremely difficult to support an industry with AI technology alone. HEROZ itself provides games, and both our engineers and business staff possess overwhelming domain knowledge of the gaming industry. That is HEROZ's strength. As the behind-the-scenes enabler of IP monetization, we want to support strong growth for Japan as a whole.
Key Discussion Points Raised in the Interview
Opening Up the Entertainment AI Market With the Tokyo Game Show as the Starting Point
Applying AI Across the Entire Game Development Process and Designing for "Fun"
The Shift to BEM and Building Recurring Revenue Through the ASK Cowork Concept
Envalith's Perspectives
Q&A Highlights
- Q
Which stages of game development is game AI applied to?
AIt is used across the entire process, from the planning phase through opponent AI/NPC decision logic, difficulty and balance tuning, and debugging/automated testing. The starting point is involvement at the planning stage—determining which AI should go into which game to raise value for both the operator and the end user.
- Q
How does shogi AI know-how translate into value in games?
AKnow-how accumulated not only in shogi but also chess, Go and backgammon is being extended to card and board games. The essential value lies in designing matchmaking ratings from the premise that a game works neither when the player always loses nor always wins, thereby delivering a competitive experience that maximizes user satisfaction.
- Q
Once AI is introduced, what work remains for humans?
AUltimately, it is humans who judge whether something is fun or not. Generative AI–based production is spreading, but in the gaming industry we believe the creative domain that generates fun will remain in human hands to the very end. In gaming, conveying enjoyment to the customer matters more than cost reduction.
- Q
How will you measure the results of the Tokyo Game Show?
ATrade shows are a venue for lead generation, and in BtoB we set the number of business discussions as the KPI. This time as well, we will track contacts and the subsequent pipeline generated. A track record with world-leading IP is a highly impactful selling point with other clients.
- Q
Is the strong growth in BtoB AI solutions driven by pricing or utilization?
AUnit pricing has changed little; the main driver is the doubling of utilization. Under the previous contract-based model, proposals, contracting and project kick-off took time, creating timing slippage. By embedding within the client from the proposal stage and booking billable hours from the point we start thinking through issues together, utilization has risen sharply. We believe sustaining this approach will allow us to maintain a high utilization rate.
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