SK Japan Co. reported a 25% surge in annual sales to ¥13.3 billion ($88.7 million) for the fiscal year ended February 2025, riding on robust demand for crane game prizes and character merchandise boosted by returning international tourists.
Operating profit rose 24% to ¥1.2 billion while net income climbed 23% to ¥929 million for the Osaka-based character merchandise supplier. The company’s character entertainment division, which provides prizes for arcade games, saw particularly strong performance with sales jumping 33% and operating profit up 34%.
SK Japan’s character fancy business, which sells merchandise to retailers, posted more modest 8% sales growth and suffered a 11% profit decline as its product mix shifted. The company, whose largest shareholder is arcade operator Round1 with a 32% stake, expects profit growth to slow in fiscal 2026, forecasting revenue to increase just 2.5% while projecting a 2.1% decline in net income.
Arcade prize games have been experiencing a renaissance in Japan, with crane machines and capsule toys gaining popularity among both domestic consumers and international visitors. SK Japan has capitalized on this trend by expanding its product planning capabilities and reviving nostalgic Heisei-era character merchandise that has proven popular in arcade settings.
