Cave Co. reported record quarterly sales for its third fiscal quarter while profits tumbled as it poured resources into revamping an underperforming game.
The Tokyo-based gaming company posted nine-month sales of ¥10.16 billion ($67.7 million), up 18.7% year-on-year, but operating profit fell 31.9% to ¥886 million ($5.9 million), according to its latest financial report.
Cave’s flagship games division, accounting for over 90% of total revenue, grew sales 11.1% but saw segment profit plunge 38.9% as development costs mounted for the troubled “Meteor Arena” game. The title, launched last September, is undergoing extensive renovation and will relaunch this summer as “Meteor Arena Stars.”
The developer’s established titles continued performing well, with “Touhou Fantasy Eclipse” exceeding expectations during its first-anniversary celebrations. “Gothic is Magic Girl,” approaching its 10th anniversary, maintained momentum through seasonal events and character renewals.
Cave’s video streaming business delivered a bright spot, with sales more than quadrupling and turning profitable after last year’s losses.
The company declined to provide full-year guidance, citing challenges in making reliable forecasts for its game portfolio.
