Nippon Ichi Software, the developer behind the Disgaea series, reported a wider quarterly net loss as development spending for upcoming game releases weighed on first-quarter results.
The Tokyo-based company posted a net loss of ¥169 million ($1.13 million) for the three months ended June, compared with a ¥93 million deficit in the same period last year. Revenue plunged 52.5% to ¥480 million as the gaming specialist advanced costs for new titles scheduled for release in the current quarter.
While operating losses narrowed to ¥174 million from ¥256 million a year earlier, the deteriorating bottom line reflects challenges facing the company as it transitions away from contract work toward developing proprietary intellectual properties. In June, Nippon Ichi revised its financial forecast, predicting a deficit of ¥254 million for the first half of the fiscal year — higher than the originally predicted loss of ¥84 million.
The entertainment division, which accounts for the bulk of revenue, saw sales drop 54.4% to ¥450 million. The company is advancing development of titles including “Fuuuraikouki 5” and “Renju,” both slated for second-quarter release. Digital distribution through PlayStation Network, Nintendo eShop and Steam continues alongside localization efforts for overseas markets.
The company’s secondary student dormitory business generated ¥30 million in revenue, a 25.4% increase, though it still posted a ¥3 million operating loss.
Despite the weak quarterly performance, management maintained its full-year outlook, projecting ¥4.77 billion in revenue and ¥81 million in operating profit. The company has announced plans to release five new original titles over the next two years as part of its strategic shift toward in-house game development.
