TOSE Co., the Japanese video game developer, projects a return to profitability in fiscal 2025 after a challenging year marked by project cancellations and losses.
The Kyoto-based company expects sales to climb 21.3% to 5.6 billion yen ($37 million) for the year ending August 2025. It forecasts an operating profit of 280 million yen, rebounding from a 522 million yen loss in the previous year.
TOSE’s core digital entertainment business is predicted to drive the recovery, with sales rising 21.3% to 5.17 billion yen and operating profit reaching 195 million yen. The segment had posted a 594 million yen loss a year earlier.
The company plans to bolster its project management capabilities, establishing a dedicated support office in September 2024 to monitor development progress and quality. This move aims to prevent losses stemming from prolonged approval processes or sudden policy changes by clients.
TOSE is also diversifying beyond gaming, with its non-entertainment division expected to see a 21.9% increase in sales to 430 million yen. The company is advancing new education-related system development projects as part of this expansion strategy.
Despite the optimistic outlook, TOSE faces potential hurdles as some clients continue to review ongoing projects, which could disrupt development timelines.
