Drecom Co. reported a net loss of ¥1.04 billion ($6.9 million) for the fiscal year ended March 2025, reversing from a profit of ¥104 million a year earlier, despite a 29.4% increase in sales to ¥12.66 billion ($84.4 million).
The Tokyo-based game developer attributed the loss to ¥1.17 billion in special charges, including impairment losses on an underperforming mobile game released in the first quarter and on in-development PC and console titles. Operating profit plunged 87.6% to ¥112 million as advertising expenses increased.
The company’s gaming segment, which accounts for 94% of revenue, saw sales rise 27.5% while profit dropped 48.5%. This decline came despite strong performance from “Wizardry Variants Daphne,” released in the third quarter. The title’s sales increased from ¥2.16 billion in Q3 to ¥2.48 billion in Q4, with overseas markets generating 30% of revenue following Steam and Chinese-language releases.
President Yuki Naito noted that “Wizardry” has shown an atypical growth pattern for mobile games, with March achieving record monthly sales of ¥1.18 billion. The game’s strong performance has continued through April and May.
Drecom expects to return to profitability in fiscal 2026 with projected net income of ¥500 million on sales of ¥20 billion, driven by continued “Wizardry” expansion and IP collaborations like the successful “Blade & Bastard” partnership.
