Extreme Co. posted a 14% decline in net income for the fiscal first half as Japan’s acute shortage of IT workers forced the gaming and software development firm to ramp up recruitment spending, even as revenue edged higher.
The Tokyo-based company reported net income of ¥458 million ($2.96 million) for the six months through September, down from ¥535 million a year earlier. Revenue rose 0.8% to ¥5.64 billion, according to the company’s statement Wednesday. Operating profit fell 19% to ¥665 million.
The results reflect intensifying competition for digital talent as Japanese companies accelerate automation efforts and seek specialists in areas like DX consulting. Extreme said it’s investing heavily to attract employees with expertise in emerging roles, pressuring margins across all profit metrics despite growth in its core businesses.
The company’s digital staffing unit, which supplies engineers to corporate clients, saw revenue climb 7.5% to ¥3.44 billion as demand for technical solutions remained strong outside the struggling gaming sector. Active projects reached 4,945, up from 4,689 a year earlier. The contract development division posted 17% revenue growth to ¥1.81 billion.
However, the content property segment—which includes game licensing and titles from subsidiary Dragami Games—plunged 50% to ¥442 million as royalty income weakened.
Extreme maintained its full-year forecast for net income of ¥616 million, down 46% from the previous fiscal year, with revenue expected to slip 3% to ¥11 billion.
