NJ Holdings Inc.
9421・Standard Market・Information & Communication
Game Business
Core group segment centered on contract game development and contract game operations
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (cumulative Q3) | ¥5,285 million | ¥4,774 million (cumulative Q3 of prior fiscal year) | ↑ |
| Segment profit (operating profit, cumulative Q3) | ¥198 million | ¥158 million (cumulative Q3 of prior fiscal year) | ↑ |
| Segment revenue (full year, prior consolidated fiscal year) | ¥6,539 million | – | — |
| Goodwill amortization (cumulative Q3) | ¥63 million | ¥62 million (cumulative Q3 of prior fiscal year) | — |
| Goodwill balance | ¥207 million | ¥271 million (end of prior consolidated fiscal year) | ↓ |
Business Details
Four companies—Game Studio Co., Ltd., tri-Ace Inc., WitOne Co., Ltd. (which absorbed WitOne Okinawa Co., Ltd. as of December 1, 2025), and Tech Flag Co., Ltd.—engage in the planning, development, and operation of mobile, console, and PC games on a contract basis. Expansion of orders for overseas support work (translation, social listening, etc.) in the game operational support field has been the primary recent revenue driver. Revenue recognition combines progress-based recognition over time and point-in-time recognition.
Recent Overview
Increased revenue and profit driven by expanded orders for overseas support work; development cost timing deviations to normalize in H2
For the cumulative third quarter of FY2026 (ending March 2026) (July 2025 to March 2026), Game Business revenue was ¥5,285 million (up ¥511 million, +10.7% year-on-year), and segment profit was ¥198 million (up ¥39 million, +24.9% year-on-year). Although there was a profit-reducing factor from the termination of operated titles, expanded orders for overseas support work in the game operational support field drove the increase in revenue and profit. The cost increase due to timing deviations in the planned incurrence of outsourcing expenses in development projects is progressing toward normalization in the second half. New development projects have begun on a small scale in the early development phase. For the full year, Game Business revenue and segment profit are expected to slightly undershoot the plan. Note that WitOne Okinawa Co., Ltd. was absorbed into WitOne Co., Ltd. as of December 1, 2025.
Key Products
Growth Drivers
- Expanded orders for overseas support work such as translation and social listening in the game operations phase
- Strengthening the core talent pool and enhancing new project acquisition through the development of proposal-driven development personnel
- Efforts to improve quality and streamline development workflows through the use of AI
- Expanding demand for titles driven by the launch of new consumer hardware in the consumer market
- Expansion of the PC game market (revenue growth in both F2P monetization models and pay-to-own models)
Risks
- Risk of structural revenue decline due to the termination of operated titles
- Risk of cost increases and reduced profitability due to timing deviations in the planned incurrence of outsourcing expenses, among other factors
- Risk of delayed order intake or reduced scale for new development projects
- Risk of a shortage of core personnel capable of directing large-scale projects and delays in their development
- Risk of changes to the revenue base due to fluctuations in dependence on sales to major clients
- Impairment risk related to the ¥207 million goodwill balance (in the event of declining profitability of the target business)
- Risk of underperformance relative to plan, given that full-year Game Business revenue and segment profit are expected to slightly undershoot the plan
Last updated: September 24, 2025