Japanese game developer Yuke’s Co. reported a 17.5% drop in revenue to ¥2.55 billion ($17.7 million) for the first three quarters of fiscal 2024, as multiple setbacks hit its gaming and XR business segments.
The Osaka-based company saw several customer-initiated project cancellations in its core gaming division, while quality control problems with external contractors delayed acceptance of its pachinko machine orders. Operating profit fell 46% to ¥130 million.
Despite these challenges, Yuke’s managed to swing to a net profit of ¥108 million, compared to a ¥1.33 billion loss a year earlier when it took write-downs on the underperforming “DC Dual Force” title.
The company showcased its upcoming contracted title “Double Dragon Revive” at the Tokyo Game Show in September. Its XR division deployed proprietary ALiS ZERO technology for real-time CG production at Sega’s Project Sekai anniversary event.
Yuke’s maintained its full-year forecast for revenue of ¥3.39 billion and operating profit of ¥110 million, representing year-on-year declines of 17% and 38.3% respectively.
