Drecom

Basic Information

Stock Code
3793
Industry
Information and Communications
Category Detail
Content Production & Distribution
Prefecture
Tokyo
Establishment Year
November 2001
Listing Year
February 2006
Official Website
https://www.drecom.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
DeNA, P Ban COM, Gree Holdings, Nexon, Colopl, GungHo Online Entertainment, gumi, Aiming, Akatsuki, Bank of Innovation, Phoenix B, Bandai Namco Holdings, Marvelous

Overview

Drecom is a content production company in the information and communications industry, established in 2001. It develops multifaceted media businesses in smartphone games, publishing, and video fields, leveraging its unique technologies.

Current Situation

Drecom recorded net sales of approximately 10.5 billion yen and operating profit of approximately 1.5 billion yen for the fiscal year ended March 2022, maintaining solid performance. Primarily centered on the development and operation of smartphone games, it also engages in publishing and video businesses, as well as merchandise sales and event businesses. Through strong collaboration with Bandai Namco Entertainment, it provides popular titles and maintains market competitiveness. It also offers technology solutions such as AI utilization and cloud load testing services, actively pursuing technological innovation. In recent years, it has launched new labels for light novels and comics, and advanced Web3-related blockchain game businesses, adapting to diversifying markets. As part of its sustainability efforts, it focuses on promoting fan marketing and deepening ties with local communities. Moving forward, it aims to further expand in the rapidly growing mobile gaming market and digital content sectors for sustainable growth.

Trivia

Interesting Facts

  • Started with a blog service at its founding
  • Equity-method affiliate of Bandai Namco Holdings
  • Launched Japan's first light novel label 'DRE Novels'
  • Focuses on game development support with proprietary AI tool 'ai and'
  • Accumulated extensive know-how through operating multiple smartphone games
  • Also focuses on location-based game development support
  • Practices multifaceted media mix expansions
  • Hosts 'Drecom Media Awards' to support new writers
  • Previously had capital and business alliance with Rakuten
  • Optimizes management resources through subsidiary sales
  • Head office located in ThinkPark Tower, Shinagawa-ku, Tokyo
  • Track record in nurturing numerous notable talents
  • History of attention in the growth stock market
  • Developed multiple famous game titles in the past

Hidden Connections

  • Stable IP securing possible through capital and business alliance with Bandai Namco
  • Achieved management efficiency and fund securing through subsidiary sales
  • Flexibly changed business strategy after forming and dissolving capital and business alliance with Rakuten
  • Diversifies revenue through cross-media expansions in games, publishing, and video
  • Strengthens IT company aspect with new businesses utilizing AI and cloud technologies
  • Supports client fan activation with proprietary fan marketing services
  • Deploys growth strategy backed by expansion of smartphone game market
  • Creates new business models through support for new light novel writers

Future Outlook

Growth Drivers

  • Expansion and diversification of smartphone game market
  • Development efficiency improvements via AI technologies and cloud services
  • Deepening of IP-based media mix strategies
  • Active adoption of new technologies like blockchain
  • Expansion of light novel and comic markets
  • Advancement and digitalization of fan marketing
  • Stable growth in goods and merchandise sales business
  • Active investments in new business areas
  • Expansion of diverse sales channels
  • Expansion of game development support business
  • Acceleration of overseas market entry
  • Brand value enhancement through local community collaboration

Strategic Goals

  • Achieve performance scale exceeding 20 billion yen
  • Improve development efficiency by over 30% through AI utilization
  • Promote new IP discovery and media mix expansions
  • Implement sustainability standards across all businesses
  • Improve fan community participation rate by 50%
  • Enhance recognition in global markets
  • Mainstream next-generation games utilizing Web3 technology
  • Publishing and video business accounting for over 20% of sales
  • Expand diverse sales channels and direct sales ratio
  • Conduct over 10 regional contribution activities annually

Business Segments

Game Development Support

Overview
Provides AI solutions specialized for game development and infrastructure optimization services.
Competitiveness
High technical expertise and game industry-specific know-how
Customers
  • Game companies
  • Software development companies
  • Content providers
Products
  • AI development support tools
  • Cloud load testing services
  • Location-based game development platform

Advertising and Marketing Support

Overview
Provides technology and services to maximize internet advertising effectiveness.
Competitiveness
Proprietary fan community management technology
Customers
  • Advertising agencies
  • Marketing companies
  • Digital media companies
Products
  • Fan marketing services
  • SNS promotion tools
  • Web analysis and construction support

Content Distribution Business

Overview
Supports planning and production of diverse content and multi-media expansions.
Competitiveness
Broad media mix expansion capabilities
Customers
  • Publishers
  • Video production companies
  • Streaming platform operators
Products
  • Light novel and comic publishing
  • Animation planning and production support
  • Web media operations

IP Merchandise and Event Planning

Overview
Enhances IP market value and fan relations.
Competitiveness
Synergistic effects through collaboration with content business
Customers
  • Fan base
  • Event organizers
  • Retailers
Products
  • Official goods planning, manufacturing, and sales
  • Event planning and operations support

Competitive Advantage

Strengths

  • Content production capabilities leveraging a wide range of popular IPs
  • Strong capital ties with Bandai Namco
  • Diversified business portfolio
  • Introduction of advanced AI and cloud technologies
  • Extensive mobile game operation experience
  • Strong fan community building capabilities
  • Active expansion into publishing and video businesses
  • Solid financial foundation
  • Ability to respond quickly to market changes
  • Abundant game development know-how
  • Secured diverse sales channels
  • Strong customer network
  • Industry-leading group of engineers
  • Proprietary fan marketing services
  • Ongoing IP media mix strategy

Competitive Advantages

  • Unique market superiority through large-scale IP utilization in collaboration with Bandai Namco
  • Long-term operation capabilities and track record in the smartphone game market
  • Achieves efficient development support through technological innovation centered on AI
  • Risk diversification possible through diverse content and media expansions
  • Pioneering service development in fan marketing ahead of competitors
  • Brand strengthening through synergies in games, publishing, and video
  • Stable management backed by solid capital and investment capacity
  • Proprietarily developed cloud load testing tool highly evaluated in the market
  • Focus on discovering and nurturing new IPs to maintain competitiveness
  • Increasing English-language titles for global expansion
  • Customized services finely tuned to customer needs
  • Improved sales efficiency through broad sales channel deployment
  • Active joint development and investments with diverse companies
  • High specialization in the entertainment sector
  • Resource concentration through quick service terminations or business transfers

Threats

  • Intensifying competition for popular IPs from rivals
  • Revenue instability due to changes in game trends
  • Business impacts from advertising regulations and strengthened privacy
  • Risk of failing to keep up with the pace of technological innovation
  • Security risks such as server loads and unauthorized access
  • Management strain from overinvestment in emerging technologies
  • Market contraction risks from external factors like COVID-19
  • Revenue decline in existing titles due to user attrition
  • Decline in development capabilities from talent outflow or hiring difficulties
  • Risks of intellectual property infringement or legal disputes
  • Cultural and regulatory barriers in overseas markets
  • Expanded financial burden from delayed revenue in new businesses

Innovations

2025: Launch of New Light Novel Label DRE Novels

Overview
Established a light novel label aiming to discover new writers and expand media mixes.
Impact
Successfully revitalized the publishing business through nurturing new writers.

2024: Launch of AI SaaS Platform 'ai and'

Overview
Developed and sold SaaS for supporting generative AI utilization in game development.
Impact
Achieved improved development efficiency and creative support.

2024: Enhancement of Cloud Load Testing Service 'Mx.Load'

Overview
Expanded load countermeasures consulting and operation monitoring services to grow customer base.
Impact
Contributed to higher customer satisfaction and sales growth.

2023: Launch of Comic Label 'DRE Comics'

Overview
Established a new label to strengthen expansion from webtoons to comic publishing.
Impact
Expanded appeal to younger demographics.

2023: Launch of Location-Based Game Development Support Platform 'AROW'

Overview
Provides game development support services using 3D real maps and POI data.
Impact
Successfully expanded into new business areas.

2023: Strengthening Fan Marketing Service 'Rooot'

Overview
Expanded services to promote fan community activation on SNS.
Impact
Contributed to enhancing clients' brand value.

2022: Promotion of Game Planning and Development Using ML and AI Technologies

Overview
Established in-house AI development structure to revolutionize game development processes.
Impact
Achieved shortened development periods and improved quality.

2021: Launch of Blockchain Games Using Web3 Technology

Overview
Leveraged game business expertise to plan new titles using blockchain.
Impact
Successfully acquired new user segments.

2020: Organizational Restructuring for Business Focus and Efficiency

Overview
Optimized allocation of management resources through division of game QC department and business sales.
Impact
Contributed to improved profitability.

2020: Strengthening New Game Development Structure via Subsidiary BlasTrain

Overview
Succeeded KnockNote's game business to expand development resources.
Impact
Accelerated launch of new titles.

Sustainability

  • Community activation through fan-participatory marketing
  • Building sustainable operations for smartphone games
  • Promoting efficient resource utilization through technological innovation
  • Enhancing fulfillment of social responsibilities through stronger local community ties
  • Risk diversification through business diversification