Silicon Studio Corp. reported an operating loss of ¥21 million ($190,000) for the fiscal first quarter ended February, reversing a ¥13 million profit a year earlier after absorbing its Ignis Imageworks subsidiary.
The Tokyo-based game middleware developer saw revenue decline 6.8% to ¥988 million as large gaming environment development projects decreased, though industrial sector demand remained resilient. The company’s human resources segment, which provides staffing services, reported a 25% drop in job placements.
The merger significantly impacted financial reporting, with Silicon Studio switching from consolidated to non-consolidated accounting. While posting an operating loss, the company recorded zero net income by recognizing a special gain from the difference between Ignis Imageworks’ net asset value and its book value.
Silicon Studio maintained its full-year forecast, projecting a 24.9% revenue increase to ¥4.67 billion for fiscal 2025 with an 8.4% rise in operating profit to ¥144 million. The company develops middleware for gaming platforms and provides digital content creation services across multiple industries.
