Tokyo-based game developer Imagineer cut its full-year profit forecast by 27% as smartphone game revenues continue falling short of targets and operational fixes prove slow to materialize.
The company now expects operating profit of ¥365 million ($2.4 million) for the fiscal year ending March 2026, down from a previous forecast of ¥500 million ($3.2 million). Revenue projections were trimmed to ¥6.25 billion ($40.6 million) from ¥6.7 billion ($43.5 million), representing a 6.7% reduction.
Imagineer attributed the downgrade to weak in-app purchase performance during its September interim results, acknowledging that improvements to game operations would take longer than anticipated. The company expects revenue shortfalls to persist through the fiscal third quarter and beyond.
Adding to the pressure, carrier-led services have suffered declining profitability due to shifting market conditions. The business segment, which generates revenue through telecom partnerships, is now tracking below internal targets.
The revised forecasts represent declines from the prior year as well, with operating profit down 20.4% and net income falling 23.7%. Japan’s mobile gaming market has faced headwinds recently, with industry data showing revenue declines of approximately 7% in 2024 as economic challenges and currency weakness weighed on consumer spending.
