Nippon Ichi Software strengthens its finance to cope with harsh environment

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Nippon Ichi Software, Inc. established in 1993 in Kakamigahara, Gifu Prefecture manufactures and provides computer software as its main products.
Nippon Ichi Software strengthens its finance to cope with harsh environment
It has expanded its business abroad having subsidiaries in the United States, Singapore and Vietnam.
The company is widely known for its game software provided for Nintendo Switch and Sony PlayStation.


Nippon Ichi Software strengthens its finance to cope with harsh environment
The Disgaia series, launched by the company in 2003, has become a globally popular product and its cumulative sales exceed over 3 million units.


Nippon Ichi Software strengthens its finance to cope with harsh environment
Although the company has been engaged in the game industry since its establishment which is expected to grow steadily, now it faces challenging situation such as rising labor costs and intensifying competition.
Net income for the fiscal year ended March 2019 decreased 42.3 percent from the previous year to only 294 million yen. Net income for the next fiscal year ending March 2020 is also expected to decrease by 37.7% to about 183 million yen.
In the game industry, the cost for developing a piece of game software is rising because recently companies are demanded to develop game software that support multiple devices such as family game consoles, PCs, and smartphones etc. in multiple languages.
To survive under such circumstances, the company announced to raise capital of about 574 million yen through Moving Strike Warrant in May 2019 to secure development capital. The company's stock price has fallen sharply after the announcement because this fund raising method is unpopular among investors who are worried the equity vale is diluted.
Utilizing this funding, Nippon Ichi is aiming to improve its capabilities to develop attractive products by strengthen its financial base so that it can encourage more talents coming to the company and get along with this harsh environment.

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