Cave Interactive reported its first quarterly operating loss since consolidating subsidiary Dera Game, with the Japanese mobile gaming company citing steep costs from relaunching Meteor Arena Stars and weaker seasonal sales. The Tokyo-based developer posted a ¥565 million ($3.8 million) operating loss for the June-August quarter, compared with a ¥129 million ($860,000) profit a year earlier.
Revenue fell 12% to ¥2.63 billion ($17.5 million) as the company absorbed renovation and promotional expenses for Meteor Arena Stars, which underwent a three-month overhaul earlier this year. The title originally launched in September 2024 but entered extended maintenance in March before emerging as a rebranded version in June, yet has continued to underperform expectations.
Cave’s gaming division, which accounts for 91% of total revenue, swung to a ¥552 million ($3.68 million) segment loss from a ¥105 million ($700,000) profit. The company operates Monster Strike through Dera Game, which hit 64 million global users, and Kingdom Ran, where a proprietary web store improved profit margins by circumventing platform fees.
The company launched Touhou Gensou Eclipse’s traditional Chinese version across five Asian markets in July after the title surpassed 1 million downloads in June. Management plans to strengthen localization efforts ahead of the game’s second anniversary in November. Gothic wa Mahou Otome will host its first live score tournament in four years this November.
Cave withheld full-year guidance, citing volatile market conditions, though it maintained its annual dividend at ¥10 per share. The company said it would disclose forecasts once reasonable projections become feasible. Its new title OUTRANKERS completed beta testing in September and is scheduled for release later this year.
Monster Strike’s first terrestrial anime broadcast is set to begin this month, while Kingdom Ran stands to benefit from the sixth series of its source anime. The video streaming segment posted a ¥12 million ($80,000) loss on ¥246 million ($1.64 million) revenue as competition intensified in live streaming and YouTube operations.
