Yukes Inc. reported a steep decline in both revenue and profit for the second quarter of the fiscal year ending January 2025, driven by delays in securing new game software projects and the late delivery of pachinko and pachislot content. Sales for the period fell 20.2% year-on-year to ¥1.62 billion (US$11.0 million), while operating profit plummeted 78.3% to ¥35 million (US$240,000). Net profit also took a hit, falling 88% to ¥21 million (US$140,000).
The downturn prompted Yukes to revise its full-year earnings forecast, now expecting sales of ¥3.39 billion (US$23 million), down 17% from the previous year, with operating profit projected to fall 38.3% to ¥110 million (US$750,000). Despite a challenging environment, the company remains engaged in high-profile projects, including the recent release of “Digibok Earth Defense Force 2” and development work for the upcoming “Double Dragon Revive,” scheduled for 2025.
In the XR business, Yukes contributed CG production for major live performances like “Ensemble Stars!! DREAM LIVE,” while continuing its work on pachinko video development. Despite these initiatives, the company faces ongoing headwinds in its core software development operations, particularly in mobile content, which is also seeing delays.
