Tose, the world's largest game outsourcing production company, has released its financial statements for the period from September 1, 2023 to May 31, 2024. According to the report, Eastern Star's profits in the digital entertainment sector have fallen significantly, mainly due to the cancellation of a number of games in development.
As a company with a rich history of private and joint development projects, Dongxing has been involved in the development of the Dragon Quest monster series, Bandai Namco's Crimson Knot, numerous Dragon Ball games, and many other games. According to Toshiro's recently released financial report, the company's net sales fell 27.6% year-on-year to 3.243 billion yen (about 20 million US dollars). In addition, the company reported an operating loss of 599 million yen, an ordinary loss of 580 million yen, and a final loss of 367 million yen.
The company reported that multiple game development projects were canceled due to changes in customer policies and other factors. As a result of these cancellations, the company is unable to recoup profits from games that have been in development since the beginning of the fiscal year. This led to a downward revision of its annual earnings forecast. The company lowered its previous net sales forecast to 4.83 billion yen from 5.52 billion yen, noting that it expects order and development conditions to remain uncertain due to changes in customer policies. Eastern Star is working hard to strengthen project management and plans to steadily roll out the currently scheduled projects to restore business performance.