Japanese company’s sales take a nosedive in revenue and profit; problems lie in older titles seeing less play and MobaCoin virtual currency usage
While Japanese mobile and social game-centric companies like GREE and GungHo did alright in the quarter of 2014, the same cannot be said for publisher and game-maker DeNA.
The Japanese social and mobile game creators announced its earnings report for its fiscal year that ended on March 31; its revenue went down 10 per cent to US$1.78 billion year-over-year. The company’s operating profits went down 31 per cent to US$523 million, while its profits went down the same percentage to US$312 million.
The reason it’s not doing so hot is due to people using the company’s virtual currency MobaCoin less and less. User spending for it declined 15 per cent year-over-year. DeNA CEO, Isao Moriyasu said that its aggressive push to release new titles on its Mobage gaming platform wasn’t enough to cover up the decline of traction in its previous titles on the platform.
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Plus, its overall monthly active users on the platform went down last November. DeNA also predicts that its user base for Mobage will continue going down and lead to further downturns in revenues and profits. Its only solution is what seems to be a common answer to give to the public: strengthen its business by getting in the top app sales via global native apps and revitalise its existing titles.
The upside to all this is that its mobile game NBA My Dream (see pic above) did very well in China. The company did not state numbers and how much the game made, but it seems that basketball and social-tailored mobile games is a good combination as any to get Chinese gamer’s attention. Perhaps more sports games with a social tinge to them can help DeNA in the long run; either that or DeNA should adopt an aggressive stance in pushing NBA My Dream in other sports-centric countries.