Cave

Basic Information

Stock Code
3760
Industry
Information and Communications
Category Detail
Content Production & Distribution
Prefecture
Tokyo
Establishment Year
June 1994
Listing Year
December 2004
Official Website
https://www.cave.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
DeNA, GREE Holdings, Nexon, Colopl, GungHo Online Entertainment, Keyware, gumi, Akatsuki, Bank of Innovation, ZETA, Bandai Namco Holdings, Marvelous, Sonocom

Overview

Cave is a content production and distribution company founded in 1994. It is a pioneering game developer that primarily focuses on social games, along with online games and live streaming services.

Current Situation

Cave recorded consolidated net sales of 12.2742 billion yen and operating profit of 1.87046 billion yen for the fiscal year ended May 2024. Headquartered in Meguro-ku, Tokyo, it has social games as its core business and is strengthening development and operations on mobile and PC platforms. In particular, 'Gothic wa Mahou Otome' accounts for 44% of sales, maintaining stable demand as a pillar of revenue. In 2022, it acquired game developer Dera Game to expand its title lineup and strengthen technological capabilities. It is also actively expanding its live streaming business, focusing on securing new revenue sources. In the shooting game field, it is highly acclaimed as a pioneer of bullet-hell shooters and works to maintain its fan base through events and merchandise sales. Moving forward, it plans to collaborate with its subsidiary Success Plus on pachinko machine development and anime production-related businesses to diversify revenue. It is strengthening partnerships with external companies through capital and business alliances and formulating mid- to long-term growth strategies.

Trivia

Interesting Facts

  • Veteran game company that established the bullet-hell shooter genre
  • Registered in Guinness records for 'Most Bullet-Hell Shooter Developments'
  • Hosts shooting game board modification events
  • Deploys numerous long-popular titles in the social game industry
  • Pioneer that quickly entered the live streaming fortune-telling business
  • Maintains loyal fan base post-arcade and console withdrawal through new tech ports
  • Regularly holds Cave Festival to emphasize fan interaction
  • History involving former Toaplan and Compile staff in founding
  • Industry-first introduction of button differentiation system in shooting games
  • Temporarily engaged in beaded accessory business outside games
  • Expanded corporate scale alongside headquarters relocation from Shinjuku to Meguro
  • Skillfully integrates moe elements into game design
  • Diversified business by establishing live streaming subsidiary capable
  • Implemented capital and business alliances with many renowned game companies
  • Actively expanded software sales on Xbox 360

Hidden Connections

  • Founded by former Toaplan employees, inheriting bullet-hell shooter traditions
  • Achieved IP utilization and joint development through alliances with multiple major game companies
  • 开拓 new markets by fusing live streaming business and fortune-telling content at subsidiaries
  • Company that greatly contributed to the revival of the domestic shooting game scene
  • Rare company successful in long-term user retention in SNS game market
  • Activates industry through creator support and events beyond game production
  • Maintains core game fans even after transition from arcades to smartphones
  • Accelerated growth since 2018 through capital and business alliances with external companies

Future Outlook

Growth Drivers

  • High user retention rate in mobile games
  • Expansion through fusion of live streaming and social games
  • Strengthened content development to enhance IP value
  • Diversification of technological capabilities via new subsidiary acquisitions
  • Expansion of domestic and international game markets and DX promotion
  • Adaptation to cloud gaming and service diversification
  • Community activation through fan-participatory events
  • Active utilization of emerging technologies and service innovation
  • New platform acquisition via business alliances
  • Balance of conservative and innovative corporate operations

Strategic Goals

  • Main social games to exceed ¥10 billion in annual sales
  • Achieve profitability in live streaming business and expand market share
  • Significantly increase IP licensing revenue and multifaceted deployment
  • Raise new business sales ratio to over 30%
  • Strengthen game platforms domestically and internationally
  • Reduce environmental impact for sustainable business operations
  • Foster diverse talent and create comfortable work environments
  • Enhance brand recognition in global game markets
  • Strengthen competitiveness through active introduction of cutting-edge technologies
  • Balance contributions to local communities and corporate value enhancement

Business Segments

Online Game Development and Operation Support

Overview
Supports online game development and operations to facilitate smooth service provision.
Competitiveness
Possesses advanced shooting game technology and operational expertise
Customers
  • Game publishers
  • Social game developers
  • Platform operators
  • Advertising agencies
Products
  • Game engine development
  • Server management
  • Operation support tools
  • Ad integration systems

Live Streaming Platform Provision

Overview
Provides systems and operational support to live streaming businesses.
Competitiveness
Specialized responsiveness to niche markets like fortune-telling
Customers
  • Content creators
  • Fortune-tellers
  • Online event operators
  • Advertisers
Products
  • Live streaming system
  • Monetization functions
  • User management
  • Content production support

Pachinko-Related Software Development

Overview
Develops digital content for pachinko machines to support market competitiveness.
Competitiveness
Advanced expressive techniques in shooting game design
Customers
  • Pachinko manufacturers
  • Amusement companies
  • Content holders
Products
  • Game software development
  • Performance production
  • System consulting

Content IP License Management

Overview
Manages IP from itself and subsidiaries to promote deployment and utilization.
Competitiveness
Ownership of well-known game title IPs
Customers
  • Game manufacturers
  • Media companies
  • Entertainment businesses
Products
  • License management
  • IP marketing support
  • Event planning

Game Development Outsourcing Management

Overview
Builds efficient outsourcing management system to achieve quality improvement.
Competitiveness
Extensive shooting game development experience
Customers
  • Small and medium game companies
  • External development partners
Products
  • Outsourcing project management
  • Quality assurance
  • Business coordination

Marketing and Promotion Support

Overview
Supports brand value enhancement using diverse media.
Competitiveness
Strong fan community building capabilities
Customers
  • Game businesses
  • Live streaming-related companies
  • Advertising agencies
Products
  • SNS promotion
  • Event planning and operation
  • Media collaboration

E-commerce Business Support

Overview
Provides total support from planning to sales of game-related products.
Competitiveness
Know-how in planning and operating fan goods
Customers
  • Goods manufacturers
  • Online shop operators
  • Related businesses
Products
  • Product planning
  • EC site construction
  • Customer management system

Competitive Advantage

Strengths

  • Industry-leading position in bullet-hell shooting games
  • High technological capabilities and game development expertise
  • Stable revenue base in mobile games
  • Active expansion into new businesses like live streaming
  • Strong fan community and brand
  • Abundant IP and content management capabilities
  • Stable financial base as a listed company
  • Risk diversification through multifaceted business expansion
  • Technology and resource enhancement via subsidiary acquisitions
  • Extensive business alliance network in the industry
  • Presence of highly specialized creators
  • Flexible organizational structure adaptable to market changes
  • Compatibility with abundant distribution platforms
  • Successful new entrant example in live streaming market
  • Certain recognition and credibility domestically and internationally

Competitive Advantages

  • Brand value as the originator of bullet-hell shooters
  • Advanced technological accumulation from years of game development
  • Established stable revenue model for social games
  • Differentiation through unique live streaming service expansion
  • Versatile platform compatibility and scalability
  • Barriers to entry for competitors via key IP ownership
  • Accelerated growth through new business development at subsidiaries
  • Market access expansion via business alliances
  • Community strengthening strategy through fan events
  • Improved user satisfaction via high-quality game development
  • Development capabilities responsive to market environment changes
  • Credibility as a Tokyo Stock Exchange-listed company
  • Simple yet addictive game design
  • Construction of multifaceted revenue channels
  • Marketing optimization through rich data utilization

Threats

  • Intense market competition with major game companies
  • Risk of trend fluctuations in the mobile game market
  • Intensified competition from new entrants
  • Risk of delayed response to rapid technological innovations
  • Changes in smartphone game revenue models
  • Potential business impacts from strengthened regulations
  • Increasing competition from new live streaming services
  • Risk of user population decline or market contraction
  • Intellectual property infringement risks
  • Impact of exchange rate fluctuations on overseas business revenue
  • Risk of engineer talent outflow
  • Increased compliance burden from privacy protection laws, etc.

Innovations

2022: Strengthened development structure through Dera Game acquisition

Overview
Made popular title 'Monster Strike' developer Dera Game a subsidiary to bolster planning and development capabilities.
Impact
Achieved improved quality in new developments and existing title operations

2024: Entered pachinko and anime fields via Success Plus acquisition

Overview
Fully subsumed pachinko development and anime production company Success Plus as a subsidiary to build new business foundation.
Impact
Aims for revenue diversification and market expansion

2021: Launched face-to-face fortune-telling live streaming platform 'Sensen (sensen)'

Overview
Successfully acquired new customers by providing fortune-telling services via live streaming.
Impact
Promotes diversification and awareness of live streaming business

2020: Continued release of smartphone shooting titles

Overview
Maintained competitiveness in smartphone market by releasing new games like 'Touhou Gensou Eclipse'.
Impact
Contributed to increase in active users and revenue expansion

2023: Advanced social game platform operations

Overview
Advanced user data analysis using AI and optimization of billing systems.
Impact
Improved user engagement and profitability

Sustainability

  • Reduced environmental impact centered on digital content
  • CO2 reduction effects from promoting remote work
  • Promoting regional exchange through social contribution events
  • Strengthened compliance for corporate ethics adherence
  • Internal environment improvement for diversity and inclusion promotion