KLab

Basic Information

Stock Code
3656
Industry
Information and Communications
Category Detail
Content Production & Distribution
Prefecture
Tokyo
Establishment Year
August 2000
Listing Year
September 2011
Official Website
https://www.klab.com/jp/
TSE Information
TSE Information
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Yahoo! Finance
Other Companies
DeNA, GREE Holdings, Nexon, Colopl, V-Cube, GungHo Online Entertainment, gumi, Akatsuki, Bank of Innovation, Prored, Bandai Namco Holdings, Marvelous

Overview

KLab is a Japanese information and communications company established in 2000, with its core business focused on planning, development, and operation of mobile online games, and emphasizing international expansion.

Current Situation

KLab recorded net sales of approximately ¥34 billion and operating profit of approximately ¥2.1 billion in 2020, establishing a solid position in the smartphone game market. Its main business is the planning, development, and operation of online games, with successful ongoing service provision for titles both domestically and internationally. Technologically, it provides high-load infrastructure services and engages in game research and consulting services. In recent years, it has entered the blockchain business and Web3-related ventures, accelerating adaptation to new technologies. It has formed capital alliances with U.S.-based Electronic Arts and Japanese studio Pierrot, strengthening its global game development framework. It also shows interest in sustainability, aiming for sustainable business operations. Toward 2030, further overseas expansion of social games and technological innovation are positioned at the center of its growth strategy. In recent years, it has conducted workforce reductions to pursue efficient management and is advancing the construction of a diversified business portfolio.

Trivia

Interesting Facts

  • KLab originated from the research and development division of CyberAgent.
  • IT company with headquarters in Roppongi Hills Mori Tower.
  • One of Japan's leading social game development companies.
  • Strong in multimedia expansions through collaborations with derivative IPs.
  • Highly evaluated for its stance on quickly adopting the latest technologies.
  • Aggressively pursuing global expansion from an early stage.
  • Already entered the blockchain game sector early.
  • Rich track record of tie-ups with numerous manga and anime IPs.
  • Actively supports new IPs and leads the market.
  • Implemented large-scale workforce reductions since 2020 for structural reform.
  • Has experience trialing e-sports related events.
  • Thoroughly selects and concentrates businesses according to growth phases.
  • Numerous collaborations and projects with renowned creators.
  • Actively engages in outsourced development in Japan and overseas.
  • Possesses specialized know-how for conquering overseas markets with IP games.

Hidden Connections

  • Predecessor was the former research division of CyberAgent Holdings.
  • Has capital ties with Bandai Namco Holdings and strong IP collaborations.
  • One of the few Japanese game companies partnered with Electronic Arts.
  • Holds license agreement for Kumamoto Prefecture's official character 'Kumamon'.
  • Entering blockchain game market through subsidiaries, seeking new growth.
  • Capital and business alliance with anime studio Pierrot, focusing on media expansion.
  • Many major competitors are large online game companies specializing in mobile games.
  • Leveraging development and operation expertise to strengthen collaborations with IP holders for overseas expansion.

Future Outlook

Growth Drivers

  • Sustained growth in smartphone and mobile game markets
  • Expansion of blockchain games and NFT markets
  • Product differentiation through strengthened collaborations with diverse popular IPs
  • Increasing demand for game content in overseas markets
  • High-quality enhancement of game experiences through technological innovation
  • Expansion of game infrastructure services
  • Expansion of new businesses leveraging Web3 technology
  • Customer base expansion through collaboration projects
  • Deepening of global partnerships
  • Diversification of digital content markets
  • Improved development efficiency through AI technology introduction
  • Strengthening of user communities

Strategic Goals

  • Achieve over 50% overseas sales ratio
  • Monetization and expansion of Web3 business
  • Deepening of multi-IP, multimedia strategies
  • Strengthening of environmental and social contributions along with governance maturity
  • Creation of new businesses leveraging technological innovation
  • Maximization of user engagement
  • Building robust global development framework
  • Establishment of sustainable revenue models
  • Promotion of diversity and inclusion internally
  • Optimization of digital platforms

Business Segments

Game Development Support Services

Overview
Provides high-performance infrastructure and research to support operational efficiency in the game industry.
Competitiveness
Expertise in large-scale online game operations
Customers
  • Game development companies
  • Online game operators
  • IP holders
  • Advertising agencies
  • IT infrastructure companies
Products
  • High-load infrastructure services
  • Game research
  • Operation consulting
  • Development outsourcing
  • Cloud solutions

IP License Support and Collaborations

Overview
Maximizes revenue through IP rights management and license support.
Competitiveness
Experience collaborating with diverse IPs
Customers
  • Content holders
  • Overseas game companies
  • Advertising agencies
  • Licensors
Products
  • Game adaptation license management
  • Overseas expansion support
  • Collaboration planning
  • Marketing support
  • Event planning

Blockchain and Web3 Business

Overview
Develops new businesses leveraging Web3 and blockchain technology.
Competitiveness
Track record in introducing cutting-edge technologies
Customers
  • Blockchain companies
  • Game developers
  • Investment funds
  • Technology partners
Products
  • NFT platform
  • Blockchain game development
  • Smart contracts
  • Digital asset management

Events and License-Related Business

Overview
Previously conducted event operations, contributing to brand value enhancement.
Competitiveness
Event experience with diverse IPs
Customers
  • IP holders
  • Game fans
  • Event planning companies
Products
  • Licensed event planning
  • Character merchandise sales

Competitive Advantage

Strengths

  • Strong game development capabilities through collaboration with popular IPs
  • Expertise in operating large-scale online games
  • Aggressive international expansion domestically and abroad
  • Rapid response to advanced technologies
  • Diversified business portfolio
  • Strong capital and business alliance partners
  • High-load infrastructure operation technology
  • Specialized expertise in game research and consulting
  • Experienced management team
  • Stable domestic market share
  • Development capabilities across diverse game genres
  • Long-term IP nurturing capabilities
  • Strong brand image
  • Promotion of digital technology innovation
  • Global partnerships

Competitive Advantages

  • Proven track record in obtaining and operating game adaptation licenses for diverse popular IPs
  • High standing in Japan's major smartphone game market
  • Strengthened international competitiveness through collaborations with major companies like Electronic Arts
  • Early entry into blockchain and Web3 technology fields
  • Advanced large-scale infrastructure construction and operation capabilities
  • One-stop system from game development to operation and consulting
  • BtoB services adaptable to diverse customer needs
  • User community building and operation expertise
  • Successful diversification of revenue sources
  • Strong user retention strategies
  • Rapid introduction and product rollout of new IPs
  • Expansion of sales channels in overseas markets
  • Mature governance structure
  • Product development aligned with market trends
  • Accumulation of proprietary technologies and innovation capabilities

Threats

  • Intensifying competition and saturation in the smartphone game market
  • Revenue risks from fluctuations in popularity of existing IPs
  • Risk of lagging behind rapid technological changes
  • Impacts from strengthened domestic and international regulations
  • Surge in competitors in emerging markets
  • Market fragmentation due to diversifying user preferences
  • Uncertainty in ROI for investments in new technologies
  • Talent outflow and recruitment difficulties
  • Decline in consumption due to economic fluctuations
  • Impact on overseas revenue from exchange rate fluctuations
  • Increase in digital copyright infringements
  • Rise of new entrants

Innovations

2022: Entry into Blockchain Business

Overview
Established subsidiary BLOCKSMITH&Co. to launch Web3-related business.
Impact
Business expansion into new growth areas

2020: Business Alliance with Electronic Arts

Overview
Promotes joint game development leveraging prominent IPs.
Impact
Enhanced international competitiveness and product diversification

2021: Made Casual Game Developer Global Gear a Wholly-Owned Subsidiary

Overview
Aims to strengthen development capabilities and market expansion.
Impact
Expansion of product lineup

2020: Signed License Agreement with Kumamon

Overview
Develops new game utilizing Kumamoto Prefecture's official mascot character.
Impact
Acquisition of new customers through regional character IP

2024: Preparing Release of New Title BLEACH Soul Puzzle

Overview
Aims for market expansion with puzzle game leveraging popular IP.
Impact
Expectations for capturing younger users

Sustainability

  • Efforts to reduce environmental impact in game development
  • Building internal systems to promote diversity and inclusion
  • Social contributions through partnerships with local communities
  • Promoting efficient operations through digital technology utilization
  • Promotion of healthy utilization of IoT and blockchain technologies
  • Establishment of sustainable supply chains
  • Strengthening intellectual property rights protection
  • Enhanced employee health management and training
  • Advancement of global CSR activities
  • Strengthened security measures
  • Promotion of remote work and flexible working systems
  • Solving social issues through development of new technologies