GameWith Inc. reported a net loss of 126 million yen ($840,000) for the first quarter ended August, reversing a profit from a year earlier, as the mobile game market cooled and advertising revenue declined.
The Tokyo-based gaming media company saw sales drop 11.7% to 807 million yen. Its media business, which accounts for over half of revenue, suffered a 19.8% decline due to fewer major game releases and lower ad rates.
Despite the setback, GameWith is pushing ahead with investments in new areas. Its NFT game “EGGRYPTO” saw significant growth, while its e-sports fiber optic business continues to expand. The company also launched operations in South Korea through a partnership with DIGITAL HEARTS Seoul.
GameWith maintained its full-year forecast, projecting results ranging from a 250 million yen loss to a 150 million yen profit for the fiscal year ending May 2025.
The company faces challenges in its core business but is betting on diversification to drive future growth. Investors will be watching to see if these new ventures can offset weakness in its traditional segments.
