Nippon Ichi Software Inc. reported its first annual loss in 12 years as new game releases underperformed, though results exceeded the company’s lowered expectations.
The Gifu-based game developer posted a net loss of ¥157 million ($1.1 million) for the fiscal year ended March 2025, compared with a ¥593 million profit a year earlier, according to a statement Friday. Revenue declined 0.8% to ¥5.3 billion ($37.9 million).
The creator of the “Disgaea” series struggled with both new releases and repeat sales of older titles. However, performance of “Phantom Brave: Ghost Fleet and the Vanished Hero,” the company’s first simultaneous global release, helped results surpass February’s downward-revised forecast.
Operating income in the entertainment segment, which accounts for nearly 98% of revenue, plummeted 77.7% to ¥207 million. The company’s student dormitory business, representing the remainder of sales, increased revenue but widened its operating loss.
Nippon Ichi expects to return to profitability in fiscal 2026, forecasting net income of ¥188 million on revenue of ¥4.95 billion, a further 6.6% sales decline. The projected price-to-earnings ratio stands at 21.4 times.
