Nippon Ichi Software Reports Continued Losses for Fiscal Year Ending March 2026 Amid 33% Drop in Entertainment Revenue

니폰이치, 엔터 부문 매출 33% 감소로 2026년 3월기도 적자 지속

Nippon Ichi Software has reported a continued deficit for the current fiscal year, following the previous year, as entertainment segment revenue fell by 33% due to sluggish sales of new titles and DLC.

On the 15th, Nippon Ichi Software released its consolidated financial results for the fiscal year ending March 2026 (April 2025–March 2026). According to the report, the company recorded sales of ¥3.606 billion (approx. ₩33.9 billion) and an operating loss of ¥409 million (approx. ₩3.84 billion). Net loss for the period stood at ¥255 million (approx. ₩2.39 billion), marking a second consecutive year of losses.

Nippon Ichi Software attributed its recent poor performance to a decline in revenue within its entertainment division. During this period, the company released four physical titles in the Japanese domestic market: 'Fuuraiki 5', 'Renju', 'Xicatrice' (lit. 'Kyuran Makai-ism'), and 'Cursed Warrior'.

Among these, 'Xicatrice' was released in Korea and other Asian regions through Clouded Leopard Entertainment. The company also focused on expanding into overseas markets, such as releasing 'Disgaea 7 Complete' in North America through its subsidiary, NIS America. Additionally, it has been actively engaged in sales of digital versions and DLC for existing titles, licensing businesses utilizing its established IP, and operating the 'Prinny Club' card game shop.

However, entertainment segment revenue plummeted 33% year-on-year to ¥3.485 billion (approx. ₩32.76 billion), while operating profit fell 81.6% to ¥38.195 million (approx. ₩359 million). In addition to the slump in its core business, the company incurred large extraordinary losses, including provisions for executive retirement benefits, which contributed to the widened net loss. Meanwhile, the student dormitory and other business segments, which manage student housing for universities in Gifu Prefecture, showed a moderate recovery with a 24.4% increase in revenue.

Despite the ongoing deficit, Nippon Ichi Software decided to maintain its year-end dividend at ¥5 per share, totaling ¥25 million (approx. ₩235 million), the same as the previous year, to reward shareholders. The company also expressed its commitment to returning to profitability in its outlook for the fiscal year ending March 2027 (April 2026–March 2027).

Nippon Ichi Software has set its next annual revenue forecast at ¥4.784 billion (approximately ₩44.97 billion, a 32.6% increase year-on-year). Furthermore, the company announced plans to return to profitability, projecting an operating profit of ¥296 million (approximately ₩2.78 billion) and a net profit of ¥331 million (approximately ₩3.11 billion). Currently, Nippon Ichi Software is preparing various new titles, including 'Gobble', which was selected through an internal contest, as well as 'Death Princess and the Monster of the Library' and 'Silent Countryside Garden Story'. 'Death Princess and the Monster of the Library' is set for release in Korea on July 2, and 'Silent Countryside Garden Story' is also scheduled for a future domestic release, with Clouded Leopard Entertainment handling publishing.

This article was originally written in Korean and translated with the help of NC AI. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. [Read Original]

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