Yuke’s Co., the Japanese game developer known for its contract development work, on December 10 issued a stark downward revision to its fiscal 2026 profit outlook, forecasting a 94% drop in operating profit despite a modest revenue increase.
The Tokyo-listed company now expects operating profit of just ¥20 million ($132,000) for the year ending January 2026, down from its previous guidance of ¥350 million ($2.3 million). Net income is projected at ¥22 million ($145,000), a 93% reduction from earlier estimates.
Revenue, meanwhile, was revised upward 11% to ¥4.22 billion ($27.8 million), reflecting the consolidation of Aqua Plus, the visual novel publisher Yuke’s acquired in August for ¥784 million ($5.2 million). The deal was intended to bolster Yuke’s publishing capabilities and expand its intellectual property portfolio, which includes the Utawarerumono franchise.
The company attributed the profit collapse to a temporary spike in outsourcing costs and expenses tied to the Aqua Plus transaction. Results for the February-October period showed the strain: Yuke’s posted an operating loss of ¥9 million despite 19% revenue growth.
Yuke’s also lowered its year-end dividend forecast to ¥10 per share from ¥13, citing its dividend policy floor.
The company’s contract development business, spanning games, XR content, and pachinko machine graphics, showed improving order volumes but delayed revenue recognition on certain game projects to future periods.
