Game
Business

Growth Strategy

We entered the game business in 2009 when mobile games began to gain traction, and have since generated numerous hit titles alongside market growth. Currently, we have established one of Japan's largest mobile game development structures, comprising over 5,000 employees within the Smartphone Game & Entertainment business division (SGE), which includes the hitmaker Cygames, Inc., and six subsidiaries. Leveraging the unique capabilities of each subsidiary, we have built a robust portfolio by developing games that utilize both original and influential external IPs. Moving forward, we will focus on global expansion and user acquisition to achieve success in overseas markets, where further long-term growth is anticipated.

Global Target Market with Japan's Largest Development Structure

Profile
Yoshitatsu Tsujioka
Executive Officer, CyberAgent, Inc.
President and Representative Director, QualiArts, Inc.
General Manager, SGE Management Division

Our Strategic Edge in a Transforming Domestic Market

The competitive landscape of the domestic game market has dramatically changed over the past decade. While revenue generated by the top-ranked title has decreased compared to ten years ago, sales within the top 20 to 30 titles have increased. This demonstrates market maturity, as long-established hits see declining value creation, giving way to an influx of more innovative games with advanced gameplay and expressiveness, powered by device innovation. Furthermore, competition is intensifying. Overseas companies accounted for nearly half of the top 50 titles in the domestic market in FY2024.

Amid intensifying market conditions and soaring development costs, some domestic game companies have withdrawn from development or downsized operations. Our ability to consistently deliver hit titles and to systematically build expertise in large-scale development and operations has established us as a partner of choice for numerous popular IP holders seeking development consultation.

The benchmark for a hit, in our view, is maintaining a long-term presence in the top 30 rankings, with the borderline set at approximately 1 billion yen in monthly revenue. We currently have multiple titles ranked, giving us confidence that we are delivering on our vision for game development.

Flagship Titles: Developed and Provided by CyberAgent

*
Top grossing of App Store: Source, Sensor Tower, data from April 1, 2025, to September 30, 2025

High Growth Rate in Overseas Markets and Strategic Focus on Casual Games

The overseas game market continues to maintain a high rate of growth, with mobile game in-app purchase revenue expected to exceed $100 billion*1 by 2028. Analyzing revenue trends by major region, the United States and China are driving the market, with Japan positioned as the third largest globally.

*1
SensorTower, "Global Mobile Games Market Outlook 2024 Report"

Global Trends in In-App Purchase Revenue by Market*

*
This chart was created by us using data from the "Global Mobile Games Market Outlook 2024 Report" published by Sensor Tower. Please note that figures for 2024–2028 are projections.

In the continually expanding global mobile game market, the momentum of casual games—designed for easy, short-session play—is accelerating. GOODROID, Inc., a subsidiary within SGE, has already surpassed 500 million cumulative downloads worldwide for its casual game portfolio.

Since casual games require low cost and short development cycles, we can launch more titles into the market, thereby increasing the probability of generating hits. Critically, casual games are a powerful driver of human capital development. While many of SGE's large-scale projects stretch our development cycle to three or four years, casual games allow smaller teams to gain extensive experience in a short period—significantly contribute to boosting our overall organizational development capabilities.

Creating Major Titles With a Dual Strategy Leveraging Original and Influential Third-Party IPs

Game titles utilizing major IPs tend to result in hits due to their established fan bases and high recognition. To capitalize on this, SGE launched the "AAA (Triple A) Strategy" around 2016, focusing on collaborations with third-party IPs.

Under this strategy, we have recently been involved in the development and operation of over ten IP titles, contributing to the expansion of new fan bases while offering new value to longtime IP fans.

Additionally, Cygames, Inc. is spearheading the global expansion of its highly successful original IPs. We are committed to delivering content that transcends cultural boundaries through multi-language releases, exhibition at major international events, and community management. The English version of Umamusume: Pretty Derby, launched in June 2025, made a major impact, securing the #1 position in Steam sales rankings in the US and various European markets*1. This success contributed to the game business's overseas revenue*2 skyrocketing to ¥20 billion in the fourth quarter of FY2025—a remarkable six-fold year-on-year increase.

Moving forward, we will leverage our accumulated technological expertise, operational capabilities, and adaptability to strengthen the creation of major titles across both original and powerful third-party IPs, thereby driving global expansion.

Overseas sales

*1
Ranked No. 1 in Steam sales rankings in more than 10 countries, including the US, Italy, France, Canada, Singapore, and Thailand.
*2
Overseas Sales: Revenue from our Group's publishing titles and overseas advertising sales
Koki Ukita

IP Accelerates Growth in the Game Business

Profile
Koki Ukita
Senior Managing Executive Officer, CyberAgent, Inc.
President and Representative Director, Applibot, Inc.

Building Teams to Maximize IP Value

From the beginning, we recognized a powerful synergy between the clear user base and the defined product vision inherent in an IP, aligned perfectly with our characteristic attitude of sincere craftsmanship.

The biggest reason SGE is entrusted with the development of popular IP games is our large-scale development structure—one of the largest in Japan. Generally, other companies often see development capabilities concentrated in specific good lines, or elite teams, creating disparities. However, SGE possesses multiple robust development teams, and we have established a system where talent with expertise in each field is optimally assigned to achieve maximum performance. This track record and trust have created a chain reaction, allowing us to continuously partner with powerful IPs in recent years.

One vital factor in the successful execution of our often long-term game development is the deeply embedded commitment to prioritize project success above individual roles or positions. We relentlessly pursue what it takes to make a blockbuster, striving not merely to utilize an IP, but to maximize its inherent value creation and expand its global fan base through the quality of our products.

Japanese IPs commanding a Global Presence

To accelerate global expansion, we are currently adopting an Overseas First approach in product development, fundamentally shaping development based on research targeting overseas users and consciously prioritizing the global market from the core. We also emphasize global market appeal when selecting new IPs.

This strategy is underpinned by our conviction in the overwhelming strength of Japanese-origin IPs. Japanese IPs are often highly original, lacking the sense of something seen before. This is because they possess the power to captivate hundreds of millions of people globally—fervent fans who deeply resonate with the content. We aim to maximize these uniquely appealing Japanese IPs to create titles beloved throughout the world.

SD Gundam G Generation ETERNAL Umamusume: Pretty Derby Shadowverse: Worlds Beyond

Competitive Advantage through Group Synergy

When launching a new IP project, SGE forms teams primarily composed of employees who are deep fans of the IP, ensuring the original work's appeal and world view are maximized in the game. Furthermore, we promote flexible collaboration across subsidiaries, with cases where about 30% of a team consists of members from other subsidiaries. We are proud that this structure, which allows us to allocate the optimal human capital to each project, is a major strength brought by the depth and diversity of SGE's talent pool.

Synergy within the CyberAgent Group is also a unique competitive advantage. We learn a lot from Cygames, Inc.'s uncompromising attitude toward craftsmanship and frequently work with them.

Furthermore, upon the release of new titles, we implement initiatives such as opening dedicated channels on ABEMA to allow eager users to immerse more deeply in the IP's world. This approach ensures maximal fan engagement and generates powerful mutual connections across the group.

Our Culture of Investing in People's Motivation

In the context of the long game development phase, we position maintaining organizational motivation and retaining outstanding human capital as crucial management priorities. SGE is rooted in the culture; a quality team is indispensable for creating a quality product. Many members act proactively, offering opinions across team boundaries and volunteering to support other development projects.

In the development of new titles, we set clear milestones and closely link product strategy with organizational strategy, implementing creative measures to maintain high motivation even in long-term projects. Furthermore, in post-release operation, we foster self-driven teams by encouraging proactive ideas and improvement proposals from members rather than relying on top-down direction.

The corporate culture rooted in CyberAgent—Freedom and Self-Responsibility and Investing in People's Motivation—is also highly valued at SGE. We believe that fostering individual drive leads to unexpectedly significant achievements. I personally prioritize opportunities to speak directly with employees, focusing on creating an environment that fully supports their challenges.

Going forward, we aim to create global hits and deliver new value, powered by our greatest competitive strength: our human capital.

【Copyrights】
Gakuen iDOLM@STER : THE IDOLM@STER™& ©Bandai Namco Entertainment Inc. Publisher: Bandai Namco Entertainment Inc./ Development and Operation: Consolidated subsidiary Qualiarts, Inc.
SD Gundam G Generation ETERNAL: ©SOTSU・SUNRISE ©SOTSU・SUNRISE・MBS Publisher: Bandai Namco Entertainment Inc. Co-developed by Bandai Namco Entertainment Inc. and Applibot, Inc.
Chiikawa Pocket: ©nagano / chiikawa committee  Developed by Applibot, Inc.
Umamusume: Pretty Derby: © Cygames, Inc.
Granblue Fantasy: © Cygames, Inc.
Project SEKAI: © SEGA / © Colorful Palette Inc. / © Crypton Future Media, INC. www.piapro.net All rights reserved.
Jujutsu Kaisen Phantom Parade: © Gege Akutami/Shueisha, JUJUTSU KAISEN Project ©Sumzap, Inc./TOHO CO., LTD. All Rights Reserved. Published by BILIBILI HK LIMITED
SAKAMOTO DAYS Dangerous Puzzle: ©Yuto Suzuki /Shueisha・SAKAMOTO DAYS Production Committee© GOODROID,Inc. ALL Rights Reserved. CyberAgent Group.
Shadowverse: Worlds Beyond: © Cygames, Inc.