Akatsuki

Basic Information

Stock Code
3932
Industry
Information and Communications
Category Detail
Content Production & Distribution
Prefecture
Tokyo
Establishment Year
June 2010
Listing Year
March 2016
Official Website
https://aktsk.jp/
TSE Information
TSE Information
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Other Companies
DeNA, GREE Holdings, Nexon, COLOPL, GungHo Online Entertainment, gumi, OpenDoor, ORO, HEROZ, IPS, Bank of Innovation, Bandai Namco Holdings, Marvelous

Overview

Akatsuki is an entertainment company founded in 2010 that develops game and comic businesses in the information and communications industry and continues to grow both domestically and internationally.

Current Situation

Akatsuki recorded consolidated sales of 32 billion yen and net profit of about 6.6 billion yen in the fiscal year ended March 2020, having built a solid revenue base centered on its game business. Its mainstay is the development and operation of smartphone online games, including hit titles such as Dragon Ball Z: Dokkan Battle and Hachigatsu no Cinderella Nine. It listed on the Mothers market in 2016 and transitioned to the Tokyo Stock Exchange First Section the following year. In 2021, it spun off its game business and established subsidiary Akatsuki Games to improve organizational efficiency. In December 2023, it formed capital and business alliances with Sony Group and Koei Tecmo Holdings to strengthen game development capabilities and overseas marketing power. Beyond games, it also operates comic businesses and webcomic distribution, focusing on providing diverse entertainment content. With about 33 employees, it maintains a lean, elite organization and continues to advance strategies in response to the growth of domestic and international smartphone game markets. It maintains a robust corporate governance structure as a company with a board of auditors, aiming for sustainable growth.

Trivia

Interesting Facts

  • Founders are management team who met during internship at Works Applications
  • Characterized by development capabilities producing numerous hits despite lean organization
  • Successfully improved operational efficiency through game business spin-off
  • Capital alliance with Sony Group attracts high attention in the industry
  • Also operates web comic distribution business, advancing diversified management
  • Acquired stable stock market valuation as Tokyo Stock Exchange Prime listed company
  • Focusing on global expansion, increasing overseas sales ratio
  • Popular titles have gained loyal fans domestically and internationally
  • In-house CISO focusing on information security
  • Head office in Kamiosaki, Shinagawa-ku, with excellent accessibility
  • Representative Director CEO has led management since founding
  • Track record of joint development with Bandai Namco and Square Enix
  • Annual sales in game business on scale of ¥30 billion
  • Deploys digital content through diverse sales channels
  • High investor attention, successful fundraising through capital alliances

Hidden Connections

  • Horizontal expansion into video and music businesses anticipated with Sony Group support
  • IP licensing collaborations with Bandai Namco and Koei Tecmo as strengths
  • Some shares held by major domestic and international trust banks and financial institutions
  • Founding management team from diverse industries leverages varied business experience
  • In-house CISO ensures robust information security measures
  • Strengthened collaboration with Sony Group-related music and video companies through capital alliance
  • Corporate partnership contract with Tokyo Verdy
  • Improved management efficiency through game business spin-off

Future Outlook

Growth Drivers

  • Sustained growth and diversification of smartphone game market
  • IP deployment and expansion strategies in overseas markets
  • Strengthened collaboration with Sony Group and Koei Tecmo HD
  • New title development and cross-media expansion
  • Overall growth of digital comic market

Strategic Goals

  • Expand sales domestically and internationally to double current scale
  • Improve development efficiency and deepen user understanding through AI and data analysis
  • Promote ESG management to achieve industry-leading sustainability
  • Maximize brand value through multifaceted IP deployment
  • Global content distribution compatible with diverse platforms

Business Segments

Game Development and Operation Services

Overview
Services providing total support from planning to operation of smartphone games to maximize revenue.
Competitiveness
Fusion of advanced development technology and overseas marketing strength
Customers
  • Game Publishers
  • Entertainment Companies
  • Advertising Agencies
  • Marketing Companies
  • Overseas Partner Companies
Products
  • Smartphone Game Planning and Development Support
  • Game Operation Platform
  • Marketing Support Services
  • Overseas Expansion Support

Comic Production and Distribution Services

Overview
Services handling planning, production, and digital distribution of web comics.
Competitiveness
Proprietary content production capabilities and distribution expertise
Customers
  • Publishing Companies
  • Web Media Operators
  • Advertising Companies
Products
  • Web Comic Production Support
  • Digital Distribution Platform
  • Content Promotion

Character Licensing Business

Overview
Licensing deployment using owned characters and planning/operation of related events.
Competitiveness
Character deployment strength from popular game titles
Customers
  • Toy Manufacturers
  • Media Companies
  • Advertising Agencies
  • Event Planning Companies
Products
  • Game Character Licensing
  • Collaboration Planning
  • Event Planning and Operation

IT Infrastructure and Security Services

Overview
Services providing comprehensive support for the group's IT infrastructure and security management.
Competitiveness
Advanced security management through in-house CISO system
Customers
  • Group Companies
  • External Partners
  • Various Online Service Operators
Products
  • Cloud Infrastructure Construction and Operation
  • Information Security Management
  • CISO Services

Overseas Expansion Support Business

Overview
Business supporting game expansion into overseas markets to achieve global sales growth.
Competitiveness
Local-focused marketing by multinational team
Customers
  • Overseas Game Companies
  • Overseas Marketing Companies
  • Local Partners
Products
  • Overseas Marketing Strategy
  • Local Operation Support
  • Multilingual Support Services

Competitive Advantage

Strengths

  • Operation of diverse popular smartphone game titles
  • Strong capital and business alliance with Sony Group
  • Enhanced marketing capabilities in overseas markets
  • Lean and agile development organization
  • Diversified business model including comics
  • Excellent content development and IP utilization capabilities
  • Transparency and credibility as a listed company
  • High ordinary income margin and stable financial base
  • Enhanced governance and internal controls
  • Improved brand recognition
  • Continuous investment in new title creation
  • Expansion of customer base domestically and internationally
  • Securing strong technical talent
  • Rapid market response capabilities
  • Proven track record of diverse collaborations

Competitive Advantages

  • Improved game development capabilities through capital and business alliance with Sony Group
  • Strengthened IP utilization via collaboration with Koei Tecmo Holdings
  • Specialized operation capabilities in high-profit smartphone game sector
  • Global expansion enabled by overseas market-savvy marketing
  • One-stop services from game development to operation and comic distribution
  • Risk diversification through diverse game titles
  • Superior user engagement management skills
  • Resource sharing and synergy creation with parent companies
  • Proprietary IP and character licensing deployment capabilities
  • Clear vision and strategy execution by management
  • Sound capital structure financially
  • Multi-platform compatibility
  • Brand strength reinforced by multiple proven popular titles
  • Early entry and stable position in mobile game market
  • Ongoing investment in new businesses and technology development

Threats

  • Intensifying competition in the smartphone game market
  • Local regulations and cultural barriers in overseas markets
  • Risk of title obsolescence due to changing user preferences
  • Competition for highly skilled engineers
  • Delays in adapting to new platforms or technologies
  • IP-related risks such as copyright infringement
  • Impact of macroeconomic market fluctuations
  • Intensified price competition from competitors
  • Cost increases due to strengthened regulations
  • External environmental risks such as natural disasters and pandemics
  • User data security risks
  • Business model changes from rapid technological innovation

Innovations

2024: Capital and business alliance with Sony Group and Koei Tecmo HD

Overview
Alliance aimed at strengthening game development and overseas marketing capabilities.
Impact
Contributes to new IP creation and overseas sales expansion.

2022: Organizational restructuring through spin-off of game business

Overview
Established Akatsuki Games to specialize in game development and operation.
Impact
Achieved business efficiency and faster decision-making.

2021: Multimedia expansion of Magica Party

Overview
Cross-media project for card game in collaboration with Takara Tomy and others.
Impact
Achieved improved brand recognition and revenue diversification.

2020: Strengthening overseas service expansion

Overview
Strengthened overseas marketing centered on Dragon Ball Z: Dokkan Battle.
Impact
Increased overseas sales ratio.

2023: Enhancement of web comic distribution platform

Overview
Expanded content and improved UX on HykeComic platform.
Impact
Sales growth accompanying increase in users.

Sustainability

  • Building energy-efficient IT infrastructure
  • Promoting diversity and inclusion
  • Activating internal environmental protection activities
  • Efforts in talent development and health management
  • Management strategy considering business sustainability