Japanese mobile game developer Akatsuki Inc. reported deeper losses for its fiscal first quarter as revenue from its gaming division tumbled, highlighting challenges facing the company’s ambitious transformation efforts.
The Tokyo-based firm posted a net loss of ¥1.17 billion ($7.8 million) for the three months ended June 30, widening from a ¥271 million loss in the same period last year. Sales declined 44% to ¥2.31 billion ($15.4 million), driven by a 52% drop in gaming revenue to ¥1.78 billion ($11.9 million).
Akatsuki cited reduced activity following anniversary events for its flagship Dragon Ball Z Dokkan Battle title and preparation costs for overseas celebrations. Development expenses for the upcoming Kaiju No. 8 mobile game, scheduled for release Aug. 31, also weighed on results.
The struggling performance comes as Akatsuki invests heavily to compete with Chinese rivals who have gained market share in Japan’s mobile gaming sector. The company has partnered with Sony Group and Koei Tecmo Holdings, which took equity stakes totaling 18% in a capital alliance.
While gaming operations faltered, the IP Solutions division showed promise with revenue surging 167% to ¥298 million ($2.0 million), bolstered by strong performance from its online lottery service and newly acquired subsidiary CRAYON.
