CyberStep Inc. reported deepening losses in its third-quarter results as revenue from its flagship online crane game “Toreba” continued to decline, overwhelming cost-cutting efforts.
The Tokyo-based game developer posted a quarterly net loss of ¥1.23 billion ($8.2 million) for the period ending February 2025, widening from ¥1.18 billion a year earlier. Sales dropped 14% to ¥1.94 billion ($12.9 million), according to a statement Monday.
Revenue from the company’s online game business, primarily driven by Toreba, fell 18.5% to ¥1.73 billion. While the segment’s operating loss narrowed to ¥401 million from ¥487 million last year, it wasn’t enough to offset wider company losses.
CyberStep’s entertainment division, which includes sound production and voice actor management, posted mixed results with revenue surging 60.2% to ¥204 million. However, operating losses in this segment exploded to ¥646 million from just ¥5 million a year earlier, suggesting significant expansion costs.
The company has implemented restructuring measures to compress costs but continues to struggle with its transition beyond Toreba, a once-popular online crane game that allows players to remotely control arcade machines to win prizes.
