Silicon Studio Corp. recovered from a first-quarter operating loss to post ¥121 million ($0.83 million) in operating profit for the second quarter, as demand from automotive and industrial clients offset a decline in large-scale gaming projects.
The Tokyo-based middleware developer and staffing firm reported revenue of ¥2.21 billion ($15.13 million) for the six months ended May, compared with ¥2.19 billion in the previous year’s consolidated results. Net profit surged to ¥178 million ($1.22 million) from a ¥7 million loss a year earlier.
The development support unit generated ¥1.38 billion in revenue despite fewer big-budget game environment projects, while the company’s human resources division contributed ¥838 million. Temporary worker placements dropped 0.4% to 1,168 people, though successful job placements climbed 8.4% to 142 candidates.
Silicon Studio, known for its YEBIS optical effects middleware and partnerships with major gaming companies, has faced headwinds from declining hiring across Japan’s gaming industry. The company previously absorbed subsidiary Ignis ImageWorks, transitioning to standalone accounting.
Management raised full-year operating profit guidance to ¥185 million ($1.27 million) from ¥144 million, citing cost controls and sustained momentum in contract development. Revenue projections remained unchanged at ¥4.67 billion ($31.96 million).
The results suggest Silicon Studio is finding stability beyond gaming through diversification into automotive and industrial segments, though the broader Japanese gaming sector’s hiring slowdown continues to pose challenges for its staffing business.
