gumi

Basic Information

Stock Code
3903
Industry
Information and Communications Industry
Category Detail
Content Production & Distribution
Prefecture
Tokyo
Establishment Year
June 2007
Listing Year
December 2014
Official Website
https://gu3.co.jp/
TSE Information
TSE Information
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Overview

gumi is a leading Japanese game company founded in 2007 that develops mobile online games and engages in XR and blockchain businesses.

Current Situation

In 2024, gumi is promoting new game development and XR technology development while strengthening its capital and management structure and continuing business reorganization. Sales are on the scale of approximately ¥20 billion, generating revenue mainly from multiple IP titles in the game segment. As a result of management improvements learned from past IPO shocks, the company has achieved profitability. While concentrating and scaling down overseas operations, it is actively investing in blockchain and XR fields. It is rapidly advancing responses to new technologies through a diverse subsidiary structure and capital and business alliances, and is working to improve management efficiency, such as planning the absorption and merger of FgG in 2025. Since 2024, it has been focusing on developing blockchain-related games while strengthening expansion into NFT and Web3 areas. It is working on restoring social trust and enhancing shareholder value, with technological innovation and securing market competitiveness at the center of its strategy.

Trivia

Interesting Facts

  • The sharp drop immediately after IPO listing was called the 'gumi Shock'
  • The company has focused on XR business (VR/AR/MR) from an early stage
  • Founder Hironao Kunimitsu is a prominent figure in the entertainment industry
  • Has undertaken many co-developments with Square Enix
  • Is a regular member of the Japan Online Game Association
  • Actively introducing blockchain technology into games
  • Oversees multiple subsidiaries to promote business diversification
  • SUPER STATE HOLDINGS became the largest shareholder in 2024
  • Expanding business domains from mobile games to XR
  • Has experienced service endings for multiple titles in the past
  • Significantly overhauled management structure after gumi Shock
  • Develops 'Phantom of Kill' through group subsidiary
  • Pioneer in Japan-originated blockchain technology-utilizing games
  • Deploys VR startup support for nurturing advanced technologies
  • Established multiple subsidiaries in Asia and the West for global expansion

Hidden Connections

  • Founder Kunimitsu serves as a bridge between X-Tech investments and game business
  • Deep relationship with Square Enix through multiple co-titles
  • Strengthened new deployments through capital and business alliance with SUPER STATE HOLDINGS
  • Advanced group business efficiency through absorption of FgG subsidiary
  • Subsidiary gC Labs specializes in NFT/Web3 games with expected growth
  • Stock price crash immediately after Tokyo Stock Exchange Part 1 listing remains in Japanese IPO history
  • VR startup support activities bolster XR industry ecosystem formation
  • Holds capital relationships with many major domestic game companies and asset management firms

Future Outlook

Growth Drivers

  • Expansion and technological innovation in XR field
  • Application of blockchain and NFT technologies to games
  • Strengthening global IPs and partnerships
  • Competitive new title development in smartphone game market
  • Market expansion in Web3-related areas and technology adoption promotion
  • Expansion of content utilization beyond games
  • Advanced game experiences through AI technology utilization
  • User engagement improvement measures
  • Financial strengthening and business collaboration through capital and business alliances
  • Establishment of new revenue models

Strategic Goals

  • Establishment as domestic leading company in XR field
  • Market share expansion in blockchain game domain
  • Realization of business diversification for sustainable growth
  • Achieve sales of over ¥50 billion by 2030
  • Formation of strong brand portfolio domestically and internationally
  • Enhancement of corporate value through both technological innovation and social contribution
  • Strengthening new IP creation and global expansion
  • Strengthening compliance with Environment, Social, and Governance (ESG) standards
  • Fostering organizational culture promoting diversity and inclusion
  • Long-term satisfaction improvement for shareholders, customers, and employees

Business Segments

Game Development Outsourcing and Publishing

Overview
Undertakes planning, development, and operation of other companies' games, and also engages in publishing.
Competitiveness
Utilization of diverse IPs and stable operation capabilities
Customers
  • Game Publishers
  • Digital Content Providers
  • Advertising Agencies
Products
  • Mobile Game Planning and Development
  • Game Operation Support
  • Marketing Services

XR Content Development and Investment

Overview
Aggressively invests in and provides development support for XR technologies.
Competitiveness
Expertise and collaboration network specialized in advanced technologies
Customers
  • VR/AR Related Companies
  • Venture Capital
  • Game Studios
Products
  • XR Platform Development
  • Technology Development Investment
  • Startup Nurturing

Blockchain-Related Business

Overview
Technology provision specialized in Web3 areas and fund operations.
Competitiveness
Pioneering presence in blockchain game domain
Customers
  • Blockchain Companies
  • Investment Funds
  • Game Development Companies
Products
  • Blockchain Game Development Support
  • NFT Technology Services
  • Web3 Related Investments

Game IP License Management

Overview
Management and deployment of own and third-party IPs licenses.
Competitiveness
IP management expertise and global deployment capabilities
Customers
  • Domestic and Overseas Game Manufacturers
  • Media Companies
  • Character Businesses
Products
  • IP License Negotiations
  • Brand Management
  • Media Expansion Support

Advertising and Promotion Business

Overview
Advertising measures and promotion support for game titles.
Competitiveness
Game user trend analysis and track record
Customers
  • Advertising Agencies
  • Game Manufacturers
  • Content Creators
Products
  • Digital Marketing
  • User Acquisition Measures
  • Event Operations

System Development and IT Support

Overview
Provides system development and IT support to support game operations.
Competitiveness
Robust system design and operation expertise
Customers
  • Own Group Companies
  • External Companies
Products
  • Game Operation System Development
  • IT Infrastructure Construction
  • Security Management

Technology Investment and Venture Support

Overview
Strategic investments and support for startups in advanced technology fields.
Competitiveness
New business development capabilities and network
Customers
  • Startup Companies
  • Investment Partners
Products
  • Venture Capital Investment
  • Technical Support
  • Business Consulting

Overseas Expansion Support Services

Overview
Development support and marketing services necessary for overseas expansion.
Competitiveness
Multinational team and extensive track record
Customers
  • Overseas Game Development Companies
  • Localization Partners
  • Global Advertising Agencies
Products
  • Localization Development Support
  • International Marketing
  • Compliance Response

Content Delivery Platform Development

Overview
Technology development for content delivery and platform operations.
Competitiveness
High-speed and stable delivery technology
Customers
  • Game Publishers
  • Distribution Service Providers
Products
  • Online Game Platform Design
  • User Management Systems
  • Streaming Technology

Education and Training Services

Overview
Services for educating game creators and IT engineers.
Competitiveness
Industry-specific practical curriculum
Customers
  • Game Industry Companies
  • IT Companies
Products
  • Game Developer Training
  • Technical Seminars
  • Management Training

Licensed IP Game Development

Overview
Planning and production of mobile games using popular IPs.
Competitiveness
Extensive experience in IP utilization
Customers
  • Domestic and Overseas IP Holders
  • Game Publishers
Products
  • IP-Based Game Planning and Development
  • Collaboration Planning
  • Character License Management

Event and Community Operations

Overview
Event planning and community operations for game users.
Competitiveness
Strong fan base and planning capabilities
Customers
  • User Communities
  • Game-Related Companies
Products
  • Fan Event Planning
  • Community Management
  • Live Streaming Operations

Competitive Advantage

Strengths

  • Diverse mobile game development capabilities
  • Advanced XR and blockchain technologies
  • Strong IP and brand portfolio
  • Track record in global expansion
  • Financial strength and network from capital and business alliances
  • Rich subsidiary and group structure
  • Versatile platform compatibility
  • Stable revenue from long-term operated titles
  • Handling of wide range of game genres
  • Diversified investment business
  • Advanced marketing strategies
  • Trust recovery through strengthened management foundation
  • User community retention capabilities
  • Proactive efforts in technological innovation
  • Numerous funding and investment achievements

Competitive Advantages

  • Abundant know-how in domestic and overseas IP licensing and co-development
  • Pioneering investment structure in XR and blockchain domains
  • New technology acquisition channels through startup support
  • Stable revenue base from capital and business alliances with major companies
  • Rapid product rollout through development collaboration within and outside the group
  • Broad compatibility with multiple platforms
  • Competitiveness from proprietary IPs and popular characters
  • Advanced marketing and user analysis capabilities
  • Long-term stability and profitability of operated titles
  • Quality assurance through high technological development capabilities
  • Management flexibility from diversified capital structure
  • Balance of local focus and global expansion
  • Responsiveness to diverse customer needs
  • High adaptability to game market trends
  • High-quality VR/AR content development capabilities

Threats

  • Intensifying competition in the game industry
  • Regulatory risks for blockchain technology
  • Development delay risks from market technology shifts
  • Uncertainty in hits for new popular titles
  • Impact from scaling down overseas operations
  • Decline in consumer sentiment due to economic fluctuations
  • Legal risks related to copyrights and IPs
  • Changes from emergence of new platforms
  • Management risks of investee ventures
  • Revenue decline from user churn
  • Potential deterioration in funding environment
  • Impact on management stability from shareholder composition

Innovations

2024: Transition and reorganization of FgG to business unit system completed

Overview
Disbanded subsidiary FgG and transitioned to business unit system for operational efficiency.
Impact
Achieved operating cost reductions and agile development promotion

2024: Multiple NFT/Web3 games released

Overview
Expanded blockchain game business developed by gC Labs.
Impact
Promoted growth of blockchain business as a new revenue source

2023: Capital and business alliance with SUPER STATE HOLDINGS

Overview
Established strategic capital alliance with major holding company.
Impact
Contributed to strengthening capital base and creating business synergies

2022: Capital and business alliance with Square Enix

Overview
Allied with Square Enix to promote game IP collaboration.
Impact
Increased co-development projects and brand strengthening

2021: Strengthening XR business and startup support

Overview
Began supporting VR-related startups with the establishment of Tokyo VR Startups.
Impact
Strengthened technology base and expanded network in XR industry

2020: Strengthening domestic and overseas IP title development structure

Overview
Strengthened collaboration with subsidiaries such as Fuji&gumi Games and AILIM.
Impact
Promoted stable operation of popular IPs and new title releases

2023: Release of new blockchain game 'Ergosum'

Overview
Co-developed and provided blockchain game with CROOZ.
Impact
Market expansion and increased attention through utilization of latest technologies

2024: Reorganization and downsizing of overseas subsidiaries completed

Overview
Organized unprofitable overseas bases through business selection and concentration.
Impact
Improved efficiency of management resources and profitability

2020: Multiple new game title releases

Overview
Released and deployed multiple new mobile game titles.
Impact
Expanded sales base and diversified customer segments

2021: Strengthening XR content projects

Overview
Strengthened XR content development with the establishment of gumi X studio.
Impact
Improved speed of advanced technology response and market development

Sustainability

  • Centralizing on digital distribution to reduce environmental impact
  • Promoting in-game CSR events
  • Promoting technological innovation through startup support
  • Promoting corporate culture that respects diversity
  • Strengthening cybersecurity