Japanese gaming company CyberStep reported wider losses in its fiscal second quarter as revenue from its main online gaming segment continued to decline.
The Tokyo-based firm posted a net loss of 801 million yen ($5.4 million) for the six months ended November, compared with an 848 million yen loss a year earlier. Revenue fell 13.9% to 1.29 billion yen ($8.7 million).
Sales from the company’s core online gaming division, which operates the Toreba crane game platform, dropped 20.2% to 1.14 billion yen ($7.7 million). The segment recorded an operating loss of 230 million yen ($1.6 million), narrowing from a 383 million yen loss in the previous year.
While the entertainment unit, focusing on audio production and voice actor management, saw revenue more than double to 143 million yen ($967,000), it registered an operating loss of 547 million yen ($3.7 million).
CyberStep said its merchandising initiatives have yet to deliver expected returns, while user engagement for Toreba remained below targets despite promotional efforts. The company plans to implement cost-cutting measures across operations while accelerating content updates to improve profitability.
