KLab Inc. recorded a ¥4.43 billion ($29.9 million) impairment loss on its EA Sports FC Tactical mobile game, marking a significant setback for the Japanese developer’s highest-profile partnership.
The Tokyo-based company said it wrote down intangible assets related to the soccer simulation title after reassessing future revenue prospects. The project, developed jointly with Electronic Arts Inc., launched in select Asian markets in May 2024 but has yet to secure a global release date.
KLab’s first-half results revealed the broader financial damage. Net losses ballooned to ¥4.75 billion ($32.1 million) from ¥1.34 billion a year earlier, while revenue declined 12.9% to ¥3.17 billion ($21.4 million). The company cited weak performance from its Captain Tsubasa mobile game as the primary driver of the sales decline.
The EA partnership, announced in July 2023, was positioned as a cornerstone of KLab’s strategy to expand internationally. The turn-based tactical game features over 5,000 licensed players from major European leagues but has remained in limited testing for more than a year.
Despite the writedown, KLab maintains that discussions with EA continue and the partnership remains intact. However, the company declined to provide specific details about the project’s status, citing contractual confidentiality obligations.
The impairment adds to KLab’s operational challenges. The developer also recorded ¥41 million in special retirement payments during the quarter as part of workforce restructuring efforts. Operating losses narrowed to ¥648 million from ¥1.02 billion, reflecting cost-reduction measures.
KLab has suspended full-year guidance, stating that reliable forecasts remain difficult under current market conditions. The company’s shares have struggled as mobile gaming competition intensifies and development costs rise.
