CyberStep

Basic Information

Stock Code
3810
Industry
Information and Communications
Category Detail
Content Production & Distribution
Prefecture
Tokyo
Establishment Year
August 2001
Listing Year
July 2006
Official Website
https://corp.cyberstep.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

CyberStep is an IT company founded in 2001, known for online game development, with strengths in fighting game development and actively pursuing international expansion.

Current Situation

CyberStep recorded consolidated sales of approximately 3 billion yen in the fiscal year ending May 2024, but posted an operating loss of 1.455 billion yen, with ordinary profit and net profit also in the red. Its main business is the development and operation of online games, particularly boasting high popularity in the fighting game genre in the Korean market. On the technical side, it adopts its proprietary game development platform 'Oni' and is focusing on VR and Web3 areas to develop new services. The product lineup includes games for PC and smartphones as well as a novel game brand, aiming to expand its revenue base through diversification. While dealing with responses to fraud allegation reports and legal proceedings, improvements in corporate transparency are required. It has global subsidiaries in multiple countries, actively raises funds, and invests in new businesses and blockchain game development. In the future, it aims to improve earnings through diversification of its game business and international expansion, strategically promoting fan base strengthening and expansion of business partnerships.

Trivia

Interesting Facts

  • Online game development company with over 20 years of history since founding.
  • Particularly high popularity in the Korean market for fighting game genre.
  • Possesses proprietary game development platform 'Oni' technology.
  • Newly established novel game division to cater to diverse user bases.
  • Pursuing game deployments in collaboration with VTubers and influencers.
  • Online crane game 'Toreba' holds significant domestic market share.
  • Conducts broad international expansion through multiple overseas local subsidiaries.
  • Successfully raised approx. 200 million yen through exercise of new share subscription rights in 2023.
  • Diversified business including electronic instrument 'KDJ-ONE'.
  • Addressing legal resolutions amid media attention on fraud allegations.
  • Continuously launching and discontinuing titles in response to game industry changes.
  • Funding from Macquarie Bank signifies trust from overseas.
  • Strengthening multilingual support to boost competitiveness in global markets.
  • Hosts and sponsors eSports events.
  • Brand recognition in Asia including Taiwan and Singapore.

Hidden Connections

  • Direct collaboration with influencer market through release of game starring VTuber 'Kuron Kokuri'.
  • Relationship with real prize distribution industry through operation of online crane game 'Toreba'.
  • Built deep trust with financial industry through funding from Macquarie Bank.
  • Deep involvement in Asian game markets through Korean and Chinese subsidiaries.
  • Diversifying novel game brands to promote differentiation within entertainment industry.
  • Cross-industry expansion connecting with music industry through electronic instruments business.
  • Legal risk management strengthened through experience with court provisional disposition.
  • Actively collaborating with local creators through multiple overseas subsidiaries.

Future Outlook

Growth Drivers

  • Establishment of new revenue models through Web3 and NFTs
  • Loyal fan base in domestic and international fighting game markets
  • Strengthening collaborations with influencers like VTubers
  • Expansion through both smartphone and PC games
  • Global market penetration via multilingual support
  • Revenue diversification through growth in novel game market
  • Expansion of commercial use of blockchain technology
  • New business development through aggressive fundraising and investments
  • Brand strengthening accompanying eSports market growth
  • Diversification through entry into electronic instruments market beyond games

Strategic Goals

  • Achieve top share in global online game market
  • Make Web3-based revenue model the leading one domestically
  • Diversify user base through multi-brand operations
  • Realize enhanced corporate value through ESG and governance strengthening
  • Reduce environmental impact through sustainable IT technology utilization
  • Address market needs through new genre game development
  • Expand repeat customers through improved customer satisfaction
  • Expand sales ratio of overseas subsidiaries to over 50%
  • Rebuild internal structure to promote innovation creation
  • Strengthen corporate culture coexisting with society

Business Segments

Game Development Outsourcing

Overview
Undertakes development for various platforms centered on online games.
Competitiveness
Long years of fighting game development expertise and proprietary platform 'Oni'.
Customers
  • Game companies
  • Advertising agencies
  • Media companies
Products
  • Online game development
  • Blockchain game planning
  • VR game development

Game Operation Services

Overview
Provides operations for own and partner games, as well as event planning and management.
Competitiveness
Strength in building online communities and long-term operation experience.
Customers
  • Own game users
  • Collaboration partners
  • eSports event organizers
Products
  • Game server operations
  • Event operation support
  • User support

Novel Game Content Production

Overview
Supports production of novel games with diverse themes and launches new brands.
Competitiveness
Content strength leveraging VTubers and influencers.
Customers
  • Individual creators
  • Advertising companies
  • Digital content distributors
Products
  • Story concept creation
  • Character design
  • Scenario writing

Blockchain Game Development

Overview
Plans and develops game products utilizing the latest Web3 technology.
Competitiveness
Pioneering planning capabilities in the Web3 space ahead of competitors.
Customers
  • Web3 companies
  • Fintech companies
  • Entertainment companies
Products
  • Blockchain-integrated games
  • NFT planning and operations
  • Smart contract development

Global Market Expansion Support

Overview
Comprehensive support services for game services targeting overseas expansion.
Competitiveness
Response system linked with local subsidiaries centered on Asia.
Customers
  • Foreign game companies
  • Multilingual expansion entities
  • Marketing agencies
Products
  • Multilingual localization
  • Overseas user support
  • International event exhibitions

Electronic Musical Instrument Sales

Overview
Planning and sales of portable electronic keyboard products, plus after-sales support.
Competitiveness
Product development leveraging expertise in both music and games.
Customers
  • Instrument stores
  • Online retailers
  • Music schools
Products
  • KDJ-ONE
  • Peripheral accessories
  • Sound design services

Competitive Advantage

Strengths

  • High technical expertise in fighting game development
  • Extensive experience operating numerous online game titles
  • Overseas expansion capabilities through global subsidiaries
  • Ownership of proprietary platform 'Oni'
  • Deployment of diverse novel game brands
  • Active investment in cutting-edge technologies (Web3)
  • Multinational development team and multilingual capabilities
  • Stable online community management skills
  • Solid funding base
  • Long-term customer base and fan community
  • Business diversification across multiple genres
  • Topicality through VTuber and influencer collaborations
  • Reliable legal response and corporate governance
  • eSports event operation know-how
  • Product planning strength targeting global markets

Competitive Advantages

  • Strength in popular fighting games centered on Korea
  • In-house game platform enables rapid development
  • Subsidiaries in Japan and abroad excel in cross-cultural adaptation
  • Built unique market in novel games and develops new fan segments
  • Pioneering initiatives in Web3 and NFT fields
  • Ongoing revenue base from rich title portfolio
  • Experience operating unique service: online crane game
  • Successful large-scale funding from Macquarie Bank and others
  • Strengthened customer touchpoints through diverse channels
  • Accumulated specialized technology in fiercely competitive game industry
  • Risk management secured through experience handling legal issues
  • Composite business in game development and electronic instruments
  • Market development through partnerships domestically and internationally
  • Unique content leveraging latest trends like VTubers
  • Enhanced development structure through increased staff

Threats

  • Intensifying competition in domestic and international game markets
  • Funding risks due to posting losses
  • Risk of corporate image decline from fraud allegations
  • Risk of failure in introducing new technologies (Web3, NFT)
  • Increasing constraints on online games due to regulatory strengthening
  • Impact of exchange rate fluctuations on overseas revenue
  • Risk of sales decline from user boredom
  • Risk of poor market reception for new titles
  • Impact of event reductions due to external factors like COVID-19
  • Talent outflow and technology succession challenges
  • Litigation risks from compliance failures
  • Service interruption risks from cyberattacks

Innovations

2023: Launch of new brand 'Rabbitfoot'

Overview
Launched a novel game brand featuring VTubers to aim for new market development.
Impact
Contributes to acquiring younger users and increasing buzz.

2023: Partnership with HADOW for Web3 game planning and development

Overview
Promoting introduction of cutting-edge technology in blockchain game domain.
Impact
Builds foundation for establishing new revenue models.

2022: Business alliance with Relipa, a blockchain game development company

Overview
Collaborating on game development linked with NFTs to strengthen adoption of advanced technologies.
Impact
Enhanced ability to respond to digital trends in the market.

2021: Fundraising through new share subscription rights issuance

Overview
Secured investment funds via large-scale allotment to Macquarie Bank.
Impact
Supports increased development of new titles and operating expenses.

2020: Strengthening operations of online crane game 'Toreba'

Overview
Operation improvements aimed at acquiring new users and enhancing service quality.
Impact
Contributed to market share expansion and increased revenue contribution.

Sustainability

  • Promoting reduction of environmental impact through digital services
  • Supporting next-generation IT technology education through community collaborations
  • Strengthening corporate ethics through legal compliance and transparency improvements
  • Energy-saving initiatives through efficient use of IT resources
  • Inclusive workplace building and diversity promotion