Japanese entertainment company Marvelous Inc. lowered its full-year sales forecast as weak performance of its new video game titles and fewer major releases dragged down revenue in the first nine months of the fiscal year.
The Tokyo-based company now expects sales of 27 billion yen ($182 million) for the year ending March, down from its previous forecast range of 29-32 billion yen. The projection represents an 8.5% decline from the previous year.
Sales in the company’s digital content division, which includes video games, fell 17.7% to 9.99 billion yen in April-December period. The unit returned to profitability despite lower revenue, helped by steady sales of budget-priced “Story of Seasons” games and online content.
While the amusement business saw higher revenue from overseas expansion and new prize machines, increased equipment replacement costs cut into profits. The music and video segment’s earnings dropped 55.7% due to declining streaming revenue, despite growth in stage performances.
For the nine-month period, overall revenue decreased 4.8% to 20.7 billion yen. Net income fell 12.4% to 1.03 billion yen, partly due to foreign exchange impacts.
