Japanese game developer Silicon Studio reported a sharp decline in profits for the fiscal year ended November 2024, as weakening hiring demand in the gaming sector hit its recruitment business.
Net income dropped 56.3% to 87 million yen ($590,000), while operating profit fell 40% to 143 million yen ($969,000). Revenue decreased 3.1% to 4.41 billion yen ($29.9 million).
The Tokyo-based company’s recruitment division saw profits plunge 30% to 208 million yen ($1.41 million) as gaming companies pulled back on hiring. The number of successful job placements fell 31.3% to 266 positions, though temporary staffing placements increased slightly by 2.9%.
The development support segment remained relatively stable with a 0.3% revenue decline to 2.77 billion yen ($18.8 million). The unit’s profits rose 12.3% to 366 million yen ($2.48 million), helped by strong demand from industrial clients despite the completion of a major game development project.
Looking ahead, Silicon Studio projects a 35.4% profit growth to 118 million yen ($800,000) for fiscal 2025, betting on improved market conditions and its expanded focus on the streaming entertainment industry.
