Nippon Ichi Software Inc., the creator of the Disgaea series, expects to post its first annual loss since 2022 as development costs soar and sales of new titles fail to meet expectations.
The Japanese game developer forecasts a net loss of ¥317 million ($2.1 million) for the fiscal year ending March 2025, compared with a profit of ¥593 million a year earlier. The company cited higher production costs driven by inflation and weaker-than-anticipated sales both domestically and overseas.
Revenue is projected to decline 2.7% to ¥5.2 billion, while operating profit is expected to swing to a loss of ¥515 million from a profit of ¥401 million in the previous year. The company reported that foreign exchange gains and interest income weren’t sufficient to offset the operational downturn.
For the first nine months through December, Nippon Ichi already recorded a net loss of ¥27 million, reversing from a ¥470 million profit a year earlier. Sales dropped 16.1% to ¥3.7 billion, primarily due to slower performance in its entertainment segment.
The company released two major titles during the period: Disgaea 7 Complete and The Princess of Kingdom of Marl 25th Anniversary Collection. Two more games are scheduled for the current quarter, including Phantom Brave: Ghost Fleet and the Missing Hero, and Classic Dungeon X3.
Nippon Ichi continues to distribute games through various digital platforms including PlayStation Network, Nintendo eShop, and Steam, while managing its card game shop “Prinny Club” and three student dormitories in Gifu Prefecture.
