CRI Middleware

Basic Information

Stock Code
3698
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
August 2001
Listing Year
November 2014
Official Website
https://www.cri-mw.co.jp/
TSE Information
TSE Information
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Overview

CRI Middleware is a specialized company in the information and communications industry, founded in 2001, with its core business in developing middleware related to video and audio.

Current Situation

CRI Middleware recorded consolidated sales of approximately 3 billion yen and operating profit of about 340 million yen in the fiscal year ended September 2023, maintaining stable operations. Its main business is the multi-platform compatible video and audio middleware product 'CRIWARE,' which is adopted in numerous games and apps. Leveraging its historical ties with the Sega Group, it has established a strong position in the game industry and is also promoting product development for smartphones. In 2019, it made a game sound production company a subsidiary, expanding its service areas. In technological innovation, it focuses on high-performance codec support and mobile compatibility to achieve sustainable growth. Going forward, it aims for long-term growth by strengthening product diversification and international expansion. Its internal structure has been strengthened with governance as a company with an audit and supervisory committee. With Sega as a major shareholder, it secures a stable capital base. It continues to supply cutting-edge middleware tailored to the technological needs of the game industry.

Trivia

Interesting Facts

  • Specialized video and audio middleware company with net profit exceeding 200 million yen
  • Number of adopted games exceeds 8,000, top class in the industry
  • Company name CRI derives from CSK Research Institute
  • Transferred graphics middleware business from Sega Games
  • Launched middleware brand 'CRIWARE' in 2006
  • Transitioned to Tokyo Stock Exchange Growth Market in 2022
  • Subsidiary Two Five is a game sound production specialist
  • Adopted PwC Japan LLC as auditing firm
  • Capital of approximately 780 million yen, mid-sized capital structure
  • Major shareholder Sega holds 12.25% stake
  • Tokyo-based company headquartered in Shibuya Info Tower
  • Proprietary codec ADX highly acclaimed in game audio
  • Brand recognition improved by CRIWARE display on game logos
  • Maintains high software quality through years of business experience
  • Belongs to Nikkei company code 146, systems software firm

Hidden Connections

  • Long-term technological cooperation as a Sega Group affiliate
  • Technical partnership track record not only in gaming but also with video distribution companies
  • Strong capital ties with major game industry player Sega as primary shareholder
  • Achieved service integration by making game audio production company a subsidiary
  • Contributing to game industry development as a regular CESA member
  • High-quality video and audio technology adopted by multiple game manufacturers domestically and internationally
  • Self-developed video compression technology CRI Sofdec is one of the industry standards
  • Maintained relationship with CSK and Sega even after capital independence via EBO

Future Outlook

Growth Drivers

  • Expansion of mobile markets such as smartphones
  • Growth of game and entertainment industries
  • Increasing demand for high-compression, high-quality video technology
  • Response to diversifying needs for audio middleware
  • Synergy creation through integration of subsidiary services
  • Further strengthening of overseas market entry
  • Development of new middleware linked with AI technology
  • Promotion of collaboration with cloud delivery technology

Strategic Goals

  • Achieve 3 billion yen in new business sales
  • Expand overseas sales ratio to over 40%
  • Technology development emphasizing environmental impact reduction
  • Building an organization with diversity and inclusivity
  • Enhance global recognition of CRIWARE brand
  • Strengthen overall capabilities through collaboration with subsidiary businesses
  • Expand product lines compatible with AI and cloud
  • Establish product development system responsive to industry needs
  • Continue sustainable social contribution activities
  • Strengthen management base stability and governance

Business Segments

Video and Audio Middleware Provision

Overview
Provides multi-platform compatible video and audio middleware products.
Competitiveness
High-performance compression technology and extensive adoption track record in the industry
Customers
  • Game development companies
  • Smartphone app developers
  • Video production companies
  • Platform operators
Products
  • CRI Sofdec2
  • CRI ADX2
  • CRI Movie Encode
  • CRI Clipper

Game Sound Production

Overview
Provides sound production outsourcing services to ensure quality.
Competitiveness
High-quality production by specialized staff with extensive project experience
Customers
  • Game development studios
  • Video production companies
  • Advertising agencies
Products
  • Sound design
  • Sound effects production
  • Music production
  • Localization support

Graphics Middleware

Overview
Provides rendering optimization and real-time expression technology.
Competitiveness
Advanced image processing technology and collaboration with Sega Games
Customers
  • Game development companies
  • Entertainment companies
Products
  • ACROARTS Graphics Engine

Embedded Software Development

Overview
Undertakes contract development of embedded software.
Competitiveness
Extensive business experience and high-reliability design
Customers
  • Mobile device manufacturers
  • Cell phone manufacturers
  • Electrical equipment manufacturers
  • In-vehicle device manufacturers
Products
  • Firmware development
  • Embedded software design

Competitive Advantage

Strengths

  • Advanced video and audio compression technology
  • Multi-platform compatibility
  • Extensive industry adoption track record
  • Strong relationship with Sega Group
  • Experienced development team
  • Expertise in game sound production
  • Stable financial base
  • Governance through audit and supervisory committee
  • Diverse product portfolio
  • Flexible customer response
  • Continuous technological innovation
  • Promotion of international expansion
  • Service enhancement through subsidiaries
  • Stable operating profit margin
  • Success in smartphone market adaptation

Competitive Advantages

  • Maintaining market superiority through widespread adoption of proprietary CRIWARE brand technology
  • Rich lineup of SDKs supporting multiple platforms
  • High reliability and brand recognition in the game industry
  • New market development through advancements in smartphone compatibility
  • One-stop sound production services via subsidiary Two Five
  • Stable customer base through cooperation with Sega and related companies
  • Reliability as a company with an audit and supervisory committee
  • World-class quality in video and audio technology
  • Proactive technology updates and product improvements
  • Rich patent technology and intellectual property protection system
  • Long track record of support for diverse platforms
  • High customer satisfaction and repeat rate
  • Industry contributions as a regular member of CESA
  • Risk diversification through multi-regional expansion
  • High technological development capabilities by specialized engineers

Threats

  • Emergence of similar technologies from competitors
  • Impact from smartphone OS specification changes
  • Trends in global market technology standardization
  • Rapid advancement of new middleware technologies
  • Risk of fluctuations in the game industry
  • Strengthening of external regulatory environment
  • Risk of intellectual property disputes
  • Difficulty in securing technical talent
  • Delays in responding to changing market needs
  • Uncertainty in international situations
  • Impact from exchange rate fluctuations
  • Potential development schedule delays

Innovations

2024: Enhancement of CRI Sofdec2 with VP9 Codec Support

Overview
Strengthened video compression technology to realize high-quality video playback environments across multiple platforms.
Impact
Improved video expression in game environments, increasing adoption rate

2023: Subsidiary Acquisition of Game Sound Production Company Two Five

Overview
Strengthened production services and built a one-stop sound service system.
Impact
Contributes to improved customer satisfaction and expansion of related sales

2022: Expansion of Functions for Smartphone-Compatible Middleware

Overview
Added new functions and optimization to mobile-targeted products such as ADX2.
Impact
Contributes to maintaining and expanding share in the smartphone app market

2021: Completion of Acroarts Business Transfer

Overview
Transferred graphics middleware business from Sega Games.
Impact
Expanded product lineup and strengthened technological collaboration

2020: Advancement of Compression Technology Development Using AI and GPU

Overview
R&D to improve compression efficiency and processing speed through introduction of advanced technologies.
Impact
Contributes to enhancing competitiveness of next-generation products

Sustainability

  • Continuous improvement of data compression technology to reduce environmental impact
  • CO2 emission reduction through promotion of remote work
  • Promotion of diversity and building an inclusive workplace environment
  • Improving customer satisfaction through high-quality services
  • Participation in technology education support programs
  • Strengthening collaboration with local communities
  • Efforts to reduce product waste
  • Proper handling of industrial waste
  • Strengthening cybersecurity for information protection
  • Research investments leading to sustainable growth