Cave Interactive posted a 13.8% revenue jump to ¥13.97 billion ($91.4 million) for the fiscal year ended May, driven by a newly acquired subsidiary and steady performance from established mobile games. However, the Tokyo-based developer suffered an 83.3% plunge in net income to ¥246 million ($1.6 million) after writing down a troubled smartphone title.
The revenue boost came largely from recently consolidated Success Plus alongside contributions from smartphone games “Touhou Gensou Eclipse” and the seven-year-old “Kingdom Ran.” Operating profit fell 39.4% to ¥1.13 billion ($7.4 million) as the company absorbed launch costs for “Meteor Arena,” which debuted in September.
Cave Interactive took a ¥1.37 billion ($9.0 million) impairment charge on “Meteor Arena” after determining the title couldn’t meet revenue expectations following a March relaunch as “Meteor Arena Stars.” The company had invested heavily in development costs and promotional spending for the game, which failed to gain traction despite the rebrand effort.
The gaming segment, which accounts for most revenue, saw sales rise 6.6% to ¥12.82 billion ($83.9 million) while segment profit dropped 42.5% to ¥1.12 billion ($7.3 million). Long-running franchise “Gothic Magic Maiden” marked its 10th anniversary with fan events in Tokyo’s Akihabara district, while “Touhou Gensou Eclipse” expanded into Taiwan with localized content.
Video streaming operations showed dramatic improvement with revenue surging 362% to ¥1.14 billion ($7.5 million) and turning profitable at ¥18 million ($118,000) compared to a prior-year loss. The segment benefited from the Success Plus acquisition and expanded live streaming activities.
Cave Interactive declined to provide fiscal 2026 guidance, stating it cannot make reasonable projections at this time. The company, known for bullet-hell arcade shooters before pivoting to mobile gaming, faces pressure to rebuild its smartphone portfolio after the “Meteor Arena” setback.
