Nippon Ichi Software reported widening losses for the fiscal first half as domestic game sales fell short of expectations, extending financial challenges for the niche Japanese developer best known for its tactical role-playing franchises.
The Gifu-based company posted an operating loss of ¥322 million ($2.1 million) for the six months through September, compared with a loss of ¥205 million a year earlier, according to results released Thursday. Revenue plunged 49% to ¥1.24 billion as newly released titles underperformed in the domestic market.
The entertainment division, which accounts for most sales, swung to a ¥95 million operating loss from a ¥43 million profit. The company released two packaged titles during the period—adventure game Fuuraiki 5 and horror title Renju—while continuing development on upcoming releases including action RPG Kyouran Makaism.
Net losses widened to ¥224 million from ¥171 million, though currency gains from a weaker yen helped limit the deterioration. The company said profits remain heavily weighted toward the second half of its fiscal year.
Nippon Ichi maintained its full-year forecast for revenue of ¥4.77 billion, down 10% from the prior year, while projecting a return to profitability with operating income of ¥81 million. The developer continues to distribute legacy titles through digital platforms including PlayStation Network and Steam.
