ENVALITH
株式会社GameWith logo

GameWith, Inc.

6552・Standard Market・Services

Official website
株式会社GameWith logo
GameWith, Inc.6552

Business

GameWith, Inc. was established in 2013 under the corporate philosophy of "creating a world where games can be enjoyed more." In September 2013, the company launched the game strategy information site "GameWith," and currently operates three segments: (1) Media, providing game strategy and introduction information along with advertising revenue; (2) Esports & Entertainment, comprising the operation of one of Japan's leading esports teams, "DetonatioN FocusMe," and creator management; and (3) Other new businesses, including the outsourced operation of the NFT game "EGGRYPTO" and the fiber-optic internet service "GameWith Hikari." The company consists of five consolidated subsidiaries and one equity-method affiliate, and is listed on the Standard Market of the Tokyo Stock Exchange. Its primary users are gaming fans in Japan and overseas, centered on game players, while advertisers and sponsor companies serve as its BtoB customers.

Business Model

In the Media business, revenue is generated by attracting page views (PV) through game walkthrough articles, monetized via two channels: network advertising (Media Advertising) and tie-ups with game companies (Media Solutions). The Esports business employs multi-faceted monetization including sponsorship income, tournament prize money, publisher support funds, merchandise sales, and fan clubs. In the Other business, revenue sources include commissioned NFT game promotions and stock-business-type fiber-optic line contract fees. The company is also working to reduce its reliance on advertising by developing an Out-of-App Payment Funnel.

Company Strengths

The Media segment recorded net sales of ¥2,124 million and operating profit of ¥637 million in FY2025 (ended May 2025), achieving an operating margin of approximately 30%. Even amid headwinds in the mobile game market, this segment functions as the company's sole source of profit, with PV unit price reaching its highest level in the past five years in the fourth quarter of FY2025 (ended May 2025).

"DetonatioN FocusMe," operated by consolidated subsidiary DetonatioN Corporation, has demonstrated improved competitive results, including finishing as runner-up—as the only Japanese team to participate—in the VALORANT division of the officially sanctioned off-season tournament "VALORANT Radiant Asia Invitational" held in Chengdu, China. The company has also concluded a long-term partnership with Riot Games.

A capital and business alliance with ARTERIA Networks Corporation (June 2022) has enabled high-quality fiber-optic line services. The company is pursuing business expansion through external partnerships, including entry into the South Korean market via a strategic partnership with DIGITAL HEARTS Seoul Co., Ltd. (a partnership through Digital Hearts Holdings Co., Ltd., concluded July 2024), and joint promotion of the out-of-app payment business with Digital Garage, Inc. (basic agreement reached in September 2024).

ENVALITH's Perspective

For FY2026 (ending March 2026), net sales were ¥4,047 million (up 17.2% year on year), and operating income reached ¥101 million, marking a return to profitability after two consecutive years of operating losses. However, profit attributable to owners of parent remained limited at ¥25 million, weighed down by a heavy corporate tax burden (¥75 million), leaving the substantive profit level low. ROE stood at 0.9%, indicating substantial room for improvement in capital efficiency, and achieving sustainable profit growth remains a challenge.

In the Esports & Entertainment segment, the main driver of the earnings improvement in FY2026 (ending March 2026) was the occurrence of multiple high-value tournament prize winnings, but prize money revenue is directly tied to competitive results and therefore has low reproducibility. The company itself cited the volatility of prize money revenue as one reason for not disclosing its earnings forecast for FY2027 (ending March 2027), leaving next fiscal year's revenue level uncertain. Expanding stable revenue sources such as sponsorship revenue and the Esports Fan Business is seen as an urgent priority.

The Media business achieved net sales of ¥2,313 million (up 8.9% year on year), driven by measures to improve PV unit pricing and strong performance in tie-up products. However, the company has noted that "the market environment surrounding the business is changing rapidly, requiring careful monitoring of the impact on PV volume and PV unit pricing." The spread of generative AI and changes in search engine specifications carry the risk of structurally altering organic traffic inflow to game walkthrough sites, and attention is focused on the progress of countermeasures such as launching new media offerings, including walkthrough platforms and creator media.

Growth Strategy

Pursuing media re-growth and stabilization of esports revenue, while seeking profitability in ISP and new businesses

Continuing measures to improve PV unit price through ad space optimization, aiming to expand Media Advertising revenue. Further strengthening of tie-up merchandise sales is also being promoted, but profit margin management remains a challenge due to accompanying cost increases. In FY2026 (ending May 2026), sales grew 8.9% year-on-year.

In parallel with improving article production efficiency through AI utilization, launching new media such as walkthrough platforms and creator media, aiming to diversify PV numbers and create new revenue sources. The company has explained that this stage requires scrutiny of revenue contribution, and software in progress increased by ¥108 million.

Continuing to secure major corporate sponsors and expand tie-up deals through enhanced team value driven by improved competitive results. Structural transformation from dependence on tournament prize money to stable revenue sources remains a mid-to-long-term challenge. In FY2026 (ending May 2026), operating loss improved to ¥16 million (from ¥222 million loss in the previous period).

Continuing steady growth in the number of subscribers and cost control through operational efficiency improvements, aiming for profitability through the accumulation of recurring revenue. In FY2026 (ending May 2026), sales were ¥431 million (up 22.4% year-on-year), with operating loss significantly improving to ¥12 million (from ¥107 million loss in the previous period).

Planning to release the new NFT game "EGGRYPTO X" in collaboration with investee Kyuzan. The release timing may fluctuate due to external factors such as store review processes and overlap with the promotional timing of major titles from other companies, making the timing of sales recognition uncertain.

Last updated: July 17, 2026