TOSE, a well-known Japanese game outsourcing company, announced its latest financial report, revealing that the company’s performance has suffered a major blow due to the sudden suspension of large-scale development projects by overseas customers, resulting in a sharp decline in profits. This once again reflects that the global game industry has not yet fully recovered.
Large-scale overseas projects are stuck, and TOSE’s profits plummet
According to the financial report released by TOSE, the company stated that a large-scale overseas game development project it originally undertook was terminated by the customer during the development period, resulting in a decline in both revenue and profit, and a sharp decline in net profit compared to the same period last year. The company pointed out that investment in overseas game markets currently tends to be conservative, with many publishers reducing development budgets, and outsourcing companies focusing on joint development and technical support bearing the brunt.
Participated in the development of numerous well-known games
Although TOSE rarely appears on game covers, he is one of the most well-known behind-the-scenes developers in Japan. He has participated in the joint development of works by many major manufacturers such as Nintendo, Square Enix, and Bandai Namco for many years, so he is also known as the “forever behind-the-scenes hero.” Nowadays, even such established outsourcing studios are affected by the cancellation of large-scale projects, which has also made the outside world more worried about whether the current cold winter in the game industry is not over yet.