Marvelous Inc.

Business Details

The Group plans, develops, sells, and operates game content for home consoles, smartphones, PCs, mobile, and other platforms, acting as the publisher. In addition, leveraging its accumulated advanced development technology, the Group also undertakes contract development of game content for other companies in the industry. The business operates on two axes, the Consumer Division and the Online Division, both domestically and overseas. In FY2026 (ending March 2026), the Group released three new titles, including a title for the new Nintendo Switch 2 console, resulting in substantial sales growth.

Recent Overview

Sales grew 58.9% year-on-year on the release of three new titles, but a segment loss was recorded due to the impact of underperforming titles

In FY2026 (ending March 2026), driven by strong sales of "Ryu no Kuni Rune Factory" (Rune Factory: Guardians of Azuma) and "Bokujō Monogatari Let's! Kaze no Grand Bazaar" (Story of Seasons: Grand Bazaar), net sales rose substantially to ¥20,489 million (up 58.9% year on year). However, the shortfall in sales plan for "DAEMON X MACHINA TITANIC SCION" and the one-time write-off of game assets related to "Browser Sangokushi Ten" weighed on results, leading to a segment loss of ¥58 million (versus segment profit of ¥937 million in the prior period). Segment assets decreased by ¥4,753 million from the end of the prior fiscal year to ¥6,669 million, mainly due to a significant decrease in work in process.

Key Products

Growth Drivers

• Expanded sales opportunities from the simultaneous release of a Nintendo Switch 2 title ("Ryu no Kuni Rune Factory" / Rune Factory: Guardians of Azuma) with the hardware launch, and the continued brand strength of the "Rune Factory" and "Story of Seasons" (Bokujō Monogatari) series
• Improved profitability in the Online Division through diversification of payment methods and operational efficiency gains, along with steady performance of existing titles (such as "Dolphin Wave")
• Plans to release two new Consumer Games titles, one new title in the online game series, and multiple titles from domestic and overseas subsidiaries toward FY2027 (ending March 2027)
• Efforts to improve profitability through restructuring of the development and operations structure, contributing to the goal of increased operating profit in FY2027 (ending March 2027)
• Strengthening of one-source, multi-platform technological capabilities based on the "multi-content, multi-use, multi-device" strategy

Risks

• Risk of failing to meet sales plans for core Consumer Games titles (in FY2026 (ending March 2026), "DAEMON X MACHINA TITANIC SCION" performed significantly below plan)
• Intensifying competition in the mobile game market (amid a continued trend of restrained new title launches, the new title "Browser Sangokushi Ten" fell short of plan, resulting in a one-time write-off of game assets)
• Risk of impairment losses on game development assets (a one-time write-off of game asset balances was recorded in FY2026, ending March 2026)
• Revenue structure highly dependent on title lineup and release timing (a decrease in revenue is expected in FY2027 (ending March 2027) due to a reduction in the number of new core titles)
• Risk of underperformance of titles in North America and other overseas markets (similar to the shortfall in the Amusement Business's North American expansion, the Digital Content Business could also experience shortfalls in overseas markets)