Japanese game developer Tose Co. posted a net loss of 260 million yen ($1.7 million) for the fiscal year ended August 2024, a stark reversal from the 499 million yen profit a year earlier. The Kyoto-based company attributed the downturn to unprofitable projects and cancellations in its digital entertainment business.
Revenue plummeted 20.2% to 4.62 billion yen, primarily due to setbacks in game software development. Tose faced cost overruns on a project requiring extensive quality improvements, while multiple other developments were scrapped following changes in client strategies.
Despite these challenges, Tose reported smooth progress on several large-scale projects. The company’s mobile content business saw increased sales from ongoing operations but struggled with unexpected server expansions for a smartphone game.
Looking ahead, Tose projects a return to profitability in fiscal 2025, forecasting net income of 160 million yen on sales of 5.6 billion yen. The company plans to establish a project management support office to bolster oversight and mitigate future risks.
