Game developer Tose Co. reported revenue jumped 43.8% to ¥6.64 billion ($44.2 million) for the year ended August, driven by console and PC projects entering intensive development phases. The contract developer swung to an operating profit of ¥689 million ($4.6 million) from a ¥522 million ($3.5 million) loss a year earlier.
The turnaround reflects stronger demand for console game work after Tose absorbed losses from two development mishaps in the prior period. Console and PC game development revenue grew significantly while smartphone-related sales dipped slightly, according to the company’s financial statement released Wednesday.
Net income reached ¥250 million ($1.7 million), reversing a ¥260 million ($1.7 million) loss. The company recorded a ¥314 million ($2.1 million) impairment charge related to rebuilding its Nagaokakyo facility.
For fiscal 2026, Tose expects revenue to slip 1.9% to ¥6.51 billion ($43.4 million) as it prioritizes console development over mobile projects ahead of Nintendo’s next-generation hardware launch. Operating profit is forecast to decline 41.3% to ¥405 million ($2.7 million) as revenue-sharing arrangements normalize.
Net income is projected to surge 215.7% to ¥790 million ($5.3 million), boosted by a ¥789 million ($5.3 million) gain from selling land as part of the building reconstruction. The company plans investments in education and mental wellbeing ventures outside gaming.
