MIXI Inc. reported a 36.7% decline in net income to ¥1.414 billion ($9.4 million) for the first quarter as Japan’s mobile gaming market faced a 17% revenue decline in the first half of 2024, pressuring the company’s core gaming business.
The Tokyo-based entertainment company’s revenue rose 4.1% to ¥31.32 billion ($209 million), though operating profit fell 4% to ¥2.677 billion ($17.8 million). The results highlight MIXI’s struggle to maintain profitability as its decade-old mobile hit Monster Strike continues losing monthly active users.
Monster Strike generated over $290 million in revenue during the January-July 2024 period, yet declining engagement hurt the digital entertainment division, where revenue dropped 11.4% to ¥16.076 billion ($107 million). The game, which once earned $4.2 million daily at its peak, faces mounting competition in Japan’s saturated mobile market.
MIXI’s sports business provided a bright spot, turning profitable with ¥604 million ($4 million) in segment profit after losing money last year. The division benefited from increased online betting ticket sales through its TIPSTAR platform and higher ticket revenues from the Chiba Jets basketball team.
The company maintained its full-year forecast, projecting net income to fall 26.1% to ¥13 billion ($87 million) as it searches for new growth drivers beyond its aging gaming portfolio.
