Bank of Innovation Inc. reported a 42% drop in second-quarter profit as revenue from its flagship mobile game “Memento Mori” continues to decline. The Tokyo-based mobile game developer saw net income fall to ¥475 million ($3.1 million) in the six months ended March, while sales decreased 15.7% to ¥6.58 billion.
The company attributed the weaker performance to the “aging” of Memento Mori, which launched in October 2022 and accounts for a significant portion of its revenue. Deteriorating advertising efficiency also contributed to the earnings slump. Despite these headwinds, Bank of Innovation continues investing in new game development, including a large-scale RPG currently in development.
The financial results come as the company faces ongoing legal challenges from Sega Corp., which filed a patent infringement lawsuit in October seeking ¥1 billion in damages related to Memento Mori’s game mechanics. Bank of Innovation’s stock has faced pressure since the litigation announcement, though the company denies any infringement. The developer declined to provide a full-year forecast, citing difficulties in making reasonable projections in the current environment.
