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Marvelous Announces Weak Financial Results as Farmagia Flopped

Giuseppe Nelvaby Giuseppe Nelva
May 9, 2025
in News
Reading Time: 3 mins read
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Today, Marvelous Entertainment announced its financial results for the fiscal year that ended on March 31, 2025.

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According to the documents provided by the publisher, net sales for the whole company were 27,963 million yen (down 5.2% year-on-year), while operating profit was 1,817 million yen (down 24.7% year-on-year).

The decline was due to the fewer releases of core console games compared to the previous fiscal year, sluggish sales of some new games, and failure to meet targets.

Looking at the Digital Contents business, which includes video games, net sales were 12,898 million yen (down 16.4% year-on-year), while profit was 937 million yen (up 97.6% year-on-year).

The drop in sales was in part due to Farmagia, which sold significantly less compared to the company’s expectations. That being said, profits actually grew due to a significant decrease in cost of sales.

On top of that, The Hokkaido Serial Murder Case The Okhotsk Disappearance ~Memories in Ice, Tearful Figurine~ and the discounted re-release in Japan on Switch of Story of Seasons Friends of Mineral Town enjoyed solid sales and contributed to profits.

The mobile game Bikkuriman Wonder Collection enjoyed a good start and contributed to revenue. Older mobile titles, despite having their sales decreasing over time, still contributed to the financial performance due to solid events and collaborations, actually exceeding the company’s expectations.

Looking at the future, Marvelous announced its outlook for the current fiscal year, which will end in March 2026. Sales are expected to be 35,000 million yen, while operating profit is expected to be 2,000 million yen. If achieved, both would be significantly higher compared to the past fiscal year.

Considering the poor performance in the past fiscal year, which was the first of a three-year mid-term business plan, the targets for the third year (the one ending in march 2027) have been determined to be too challenging and dropped.

Marvelous aims to restructure its console business, further tightening the investment policy for new games and strengthening the branding of games that are part of franchises, which form the foundation of revenue.

The aim for the Online business, which focuses on mobile and free-to-play games, is growth, which is seen as possible due to the smooth launches of new games. Marvelous intends to continue to focus on quality and marketability while regularly launching new games.

Another goal is to expand into markets outside of Japan, while promoting the development of owned IPs and franchises. Unfortunately, Marvelous has been struggling to monetize new IPs. Once IPs have been established, the company intends to promote releases on multiple platforms.

If you’d like to compare these results with historical data, you can read our report about the first nine months of the fiscal year, based on data released in January.

Other gaming companies have also already announced their financial results this quarter, including Koei Tecmo, Microsoft, Electronic Arts, Nintendo, Bandai Namco, and Konami. You can expect more reports on this topic over the coming week or so.

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