Japanese game developer Drecom Co. reported a quarterly net loss of 1.02 billion yen ($6.8 million) as new mobile titles failed to meet revenue targets. The loss widened significantly from 169 million yen a year earlier, forcing the company to take impairment charges on underperforming games.
Revenue dropped 21% to 4.02 billion yen in the quarter, with the gaming segment declining 24% to 3.8 billion yen. The company’s recent release “The Devil Prince and the Puppet” performed below expectations, while existing titles also showed weakness.
The Tokyo-based developer found some relief in October as its new dungeon RPG “Wizardry Variants Daphne” generated about 700 million yen in its first two weeks. The company is now betting on “Disney STEP,” a location-based mobile game scheduled for release in early 2025, to help drive a turnaround.
Drecom has delayed providing full-year guidance, citing volatile performance across its portfolio. The company is diversifying beyond mobile games, with its content business revenue growing 88% to 224 million yen, though the segment remains unprofitable due to ongoing investments in publishing and Web3 initiatives.
