Tose Co., a Kyoto-based game developer, reported a dramatic financial turnaround in its third quarter as the company deliberately shifted away from mobile gaming projects to focus on more stable console and PC development work.
The contractor, known in the industry as a “ghost developer” for rarely receiving public credit for its work, posted operating income of ¥507 million ($3.5 million) for the nine months through May, reversing a ¥599 million loss in the same period last year. Revenue surged 49.9% to ¥4.86 billion ($33.3 million).
The company’s gaming division, which accounts for the bulk of its business, saw revenue climb to ¥4.36 billion ($29.9 million), driven by increased activity across multiple major development projects for console platforms. Management cited improved project workflows and additional client orders that expanded development scope beyond original estimates.
Tose has explicitly prioritized home console and PC game contracts over new smartphone development requests, citing the mobile market’s intensely competitive environment. The strategic pivot comes after the company suffered losses from cancelled mobile game projects by unnamed clients in recent periods.
The developer, which has worked on over 1,000 titles since 1979 including recent projects like Crisis Core: Final Fantasy VII Reunion, raised its full-year revenue forecast to ¥6.4 billion ($43.8 million) from ¥6.0 billion. Operating profit guidance increased to ¥600 million ($4.1 million) from ¥420 million.
Nintendo’s Switch 2 launch success has prompted some clients to consider adding the new platform to existing projects, though management expects the primary impact from next-generation console development to materialize in fiscal 2026.
