Tose Co., a Japanese game development company, reported a dramatic turnaround in its fiscal first quarter, posting an operating profit of 296 million yen ($2.1 million) compared to a loss in the same period last year. The company achieved this despite keeping its full-year guidance unchanged.
Revenue jumped 83.5% to 1.72 billion yen ($12.1 million) in the September-November period, driven by stronger-than-expected progress in home console and PC game development projects. The gaming segment alone generated operating profit of 267 million yen ($1.9 million), already exceeding its full-year target of 177 million yen.
The company maintained its conservative stance on full-year projections, citing uncertainties in some prototype-stage projects and partially idle capacity following project cancellations in the previous fiscal year. Management also indicated plans for growth investments in its gaming business during the second half.
Tose’s recovery comes as the company pursues multiple large-scale projects with major overseas gaming companies. The potential launch of Nintendo Switch’s successor could provide additional opportunities, given the company’s extensive experience in console game development.
For the full fiscal year ending August 2024, Tose has already achieved 105.7% of its operating profit target and 133.1% of its net income forecast in just the first quarter.
