Bank of Innovation Inc. reported a steep decline in annual profit as revenue from its flagship mobile game Memento Mori dropped ahead of its second-anniversary campaign.
Net income fell 73% to 895 million yen ($5.9 million) for the year ended September, the Tokyo-based company said in a statement Tuesday. Sales tumbled 36% to 13.6 billion yen.
The mobile game developer, which relies heavily on in-app purchases, saw diminishing player spending in Memento Mori compared to its debut year. While the title remained a key revenue source, the reduced player engagement weighed on the company’s overall performance.
Bank of Innovation withheld its earnings forecast for fiscal 2025, citing difficulties in making accurate projections due to flexible investment planning. The company said it’s developing several new apps aimed at medium to long-term growth.
The results highlight the challenges facing Japan’s mobile gaming industry, where success often hinges on maintaining player interest and spending patterns after initial game launches.
