TOSE CO., LTD.
4728・Standard Market・Information & Communication
Business
TOSE CO., LTD. is an independent digital content development company founded in 1979. As an independent developer not affiliated with any particular capital group, it undertakes contract planning, development, and operation of game software for home consoles, smartphones, and arcades, with major game makers such as Atlus, Square Enix, and Bandai Namco Studios as its primary clients. The company has multiple domestic locations (Nagaokakyo, Tokyo, etc.) and an overseas subsidiary in Hangzhou, China, and is organized into two segments: the Game Business (approximately 91% of net sales) and Other Business (non-game areas such as education and entertainment). Consolidated net sales for FY2025 (ending August 2025) were ¥6,636 million. Listed on the Tokyo Stock Exchange Standard Market.
Business Model
The company receives development orders from client game makers and content providers, earning development fees by providing an integrated service spanning planning proposals through development and operation. In addition, Revenue Share (a success-based fee with no associated cost) distributed according to sales of developed titles serves as another source of income. Funding is covered entirely by the company's own capital with no borrowing, and capital expenditure is limited to development equipment, servers, and the like, giving the business an asset-light structure.
Company Strengths
As an independent company not belonging to any specific capital group, the company maintains neutrality that allows it to conduct business simultaneously with major game makers such as Atlus, Square Enix, Bandai Namco Studios, and Takara Tomy. In FY2025 (ending August 2025), the top four clients combined accounted for 65.9% of net sales, and the company maintains a broad client base.
At the end of FY2025 (ending August 2025), the order backlog for the Game Business reached ¥3,406 million (up 386.7% year on year), and the company-wide total reached ¥3,418 million (up 351.0% year on year). Orders received also expanded rapidly to ¥8,351 million (up 216.3% year on year), with the accumulated order backlog underpinning sales in subsequent periods.
The company has clarified its policy of curbing new development for the increasingly competitive smartphone game market and prioritizing development for home game consoles. The Nintendo Switch 2, released in June 2025, recorded its best-ever start, and amid expanding demand for the development of compatible software, multiple projects are progressing actively, including the final stages of existing projects and additional orders received.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years declined from ¥5,960 million in FY2021 to ¥4,615 million in FY2024, before recovering V-shaped to ¥6,636 million in FY2025. However, FY2026 (ending March 2026) is now forecast to see a slight decline to ¥6,510 million in full-year revenue (down 1.9% year on year). Cumulative revenue for the first nine months (Q1-Q3) of FY2026 was ¥4,822 million (down 0.8% year on year), remaining roughly flat, but operating profit fell sharply to ¥280 million (down 44.8% year on year). The temporary suspension of a large-scale project due to a policy change by an overseas client (decided at end-February 2026, resumption timing undetermined) directly hit utilization rates from March onward, compounded by unabsorbed fixed manufacturing costs and a decline in Revenue Share. Because an extraordinary loss of ¥314 million (impairment loss and relocation compensation) had been recorded in the same period a year earlier, net income increased to ¥200 million (up 61.0% year on year). The full-year earnings forecast remains unchanged (revenue of ¥6,510 million, operating profit of ¥405 million, and net income of ¥790 million), with the company expecting to recover in the fourth quarter.
Growth Strategy
Three pillars: deepening development for home consoles, creating new non-game businesses, and strengthening development capabilities through AI utilization
In response to capacity openings created by the temporary suspension of a large-scale overseas project, the company is promoting early order acquisition and smooth launch of new projects, including small and medium-sized ones, and switching planned outsourced work to internal resource utilization. Multiple major projects are proceeding as planned in their final stages. Capturing demand for software development compatible with Nintendo Switch 2 as it becomes widespread is also a focus area.
The company is promoting market research and business planning across diverse fields, including content production for education, music, entertainment, and local governments. While some sales have been recorded from content production for local governments utilizing 3DCG production technology, cumulative net sales for the third quarter of FY2026 (ending August 2026) were ¥283 million (down 44.1% year on year), impacted by the decline from projects that ended in the previous fiscal year, and the transition to profitability is still underway.
In connection with the rebuilding plan for the Nagaokakyo Tose Building, construction in progress has increased to ¥111 million (¥31 million at the end of the previous fiscal year), indicating that investment is now in full swing. The new office is intended to strengthen the development environment and recruiting capabilities, and is expected to contribute to the expansion of mid- to long-term contract development capacity. The sale of investment real estate associated with the rebuilding is expected to contribute to extraordinary income for the full fiscal year FY2026 (ending August 2026).
The company is incorporating AI utilization know-how cultivated in game development into its development processes to improve productivity and strengthen cost competitiveness. It is also considering applying this technology to non-game domains, an initiative that serves as a foundation for mid- to long-term revenue diversification. At present, no specific quantitative results have been disclosed, and progress assessment remains limited.
Last updated: July 17, 2026