Ateam Entertainment swung to profitability for the fiscal year ended July 2025, marking a turnaround for the game developer that has struggled since its 2021 spinoff from parent Ateam Holdings. The Nagoya-based company posted net income of ¥323 million ($2.2 million), compared with ¥24 million a year earlier, according to financial statements.
Revenue declined 4.7% to ¥4.2 billion as the company’s mobile game portfolio continued shrinking. Operating profit reached ¥370 million, reversing a ¥119 million loss in the previous period. The turnaround came from streamlining operations on existing titles and raising the share of partnership projects rather than internally developed games.
The company nearly eliminated its debt overhang, reducing it to ¥10 million from significantly higher levels. Management cited cost discipline and a strategic shift toward collaborative ventures as key factors behind the recovery.
Japan’s domestic mobile game market has grown increasingly competitive, with established franchises dominating revenue. Ateam Entertainment was carved out from its parent’s entertainment division in April 2021 but faced immediate headwinds. The company has recently announced partnerships with major intellectual property holders, including a joint development agreement with Sanrio in May.
The results suggest Ateam Entertainment has stabilized its business model through partnerships and operational efficiency, though sustained revenue growth remains uncertain.
