Japanese mobile game developer GungHo Online Entertainment reported a steep decline in third-quarter earnings as its key titles lost momentum. Operating profit dropped 33% to ¥15.8 billion ($106 million) while revenue fell 22% to ¥76.5 billion.
The Tokyo-based company, known for its hit game Puzzle & Dragons, faced headwinds from underperforming Ragnarok franchise titles despite launching new versions in Korea and China through its subsidiary Gravity. The Korean release “The Ragnarok” debuted in September, followed by “Ragnarok X” in China.
To counter the slowdown, GungHo launched “Disney Pixel RPG” in October, marking its first major collaboration with the entertainment giant. The company has also continued updating Puzzle & Dragons with new features and cross-promotional events to maintain player engagement.
GungHo declined to provide full-year guidance, citing rapid changes in the mobile gaming market. The company’s cautious outlook reflects broader challenges facing mobile game publishers as they compete for user attention and spending in an increasingly crowded market.
The gaming firm’s shares have dropped 15% this year, underperforming the broader Topix index’s 8% gain.
