Silicon Studio Corp., a Japanese game technology provider, cut its full-year outlook as the gaming industry’s hiring slowdown and project cancellations hit its bottom line. The Tokyo-based company reported a net loss of 81 million yen ($540,000) for the third quarter, compared to a profit of 158 million yen a year earlier.
Revenue fell 6.4% to 3.29 billion yen in the quarter ended August, with the human resources division seeing an 8.8% drop in sales. The company cited a “sudden decline” in game companies’ willingness to hire, leading to a 37.5% plunge in job placements.
Silicon Studio’s development support business also struggled, with sales down 4.8% due to fewer game environment contracts and restructuring at a subsidiary. The firm now expects full-year net income to reach just 85 million yen, a 60.8% cut from its previous forecast.
Despite the headwinds, the company reported a 3.3% increase in temporary staff placements, suggesting some resilience in its staffing services amid the broader industry slowdown.
