Bank of Innovation

Basic Information

Stock Code
4393
Industry
Information and Communications
Category Detail
Content Production & Distribution
Prefecture
Tokyo
Establishment Year
January 2006
Listing Year
July 2018
Official Website
https://boi.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
DeNA, GREE Holdings, Nexon, Colopl, GungHo Online Entertainment, gumi, Aiming, Akatsuki, Wantedly, Kinjiro, HEROZ, Bandai Namco Holdings, Marvelous

Overview

Bank of Innovation is a smartphone game development company established in 2006, with strengths in developing role-playing games featuring unique character designs.

Current Situation

Bank of Innovation recorded consolidated net sales of 21.3 billion yen and operating profit of 4.9 billion yen for the fiscal year ending September 2023, maintaining a solid financial base. It specializes in role-playing games with original characters in the smartphone game sector, differentiating itself from competitors primarily in the content production and distribution industry. While continuing to operate its flagship title Memento Mori, the company is focusing on developing new titles. It is also managing legal risks such as patent infringement lawsuits. Resources are being invested in sustainable development and improving user experience to adapt to the diversification of the game market. The shareholder composition includes major shareholders from management and institutional investors, steadily advancing growth strategies for the future. The company will continue to secure competitive advantages while focusing on ongoing innovation.

Trivia

Interesting Facts

  • Started as a video search engine business in 2006
  • Smartphone game 'Memento Mori' is one of its popular titles
  • Self-developed game dating app 'Koi niwa'
  • Listed on Tokyo Stock Exchange Growth Market in 2018
  • Involved in multiple patent infringement lawsuits for game titles
  • Successfully pivoted to smartphone games within a few years of founding
  • Headquarters located in Shinjuku Eastside Square, Shinjuku-ku, Tokyo
  • Founder and Representative Director Tomohiro Higuchi holds significant influence as a major shareholder
  • Related subsidiaries include Koin iwa and Bank of Incubation
  • As of 2023, 168 consolidated employees in a compact organization
  • Provides games on diverse digital platforms
  • Operation emphasizing user engagement is a key feature
  • Experience participating since the early days of social games
  • Corporate structure handling both content production and distribution
  • Balances long-term IP utilization with new planning

Hidden Connections

  • Cygames is one of the major shareholders with capital and business alliance relations
  • Institutional investors such as Morgan Stanley MUFG Securities support as shareholders
  • Strong transaction relationships with distribution platforms support stable revenue
  • Shinjuku Eastside Square is a hub for multiple game-related companies
  • Game patent lawsuits exemplify strict IP management in the industry
  • Board includes multiple industry veterans with extensive experience
  • Expansion into entertainment-related services beyond smartphone games is a market focus
  • Subsidiary Bank of Incubation handles startup support

Future Outlook

Growth Drivers

  • Sustained expansion of the smartphone game market
  • Differentiation through strengthened original content
  • Acceleration of overseas market expansion
  • Advancement of cloud technology and AI utilization
  • Development of new genres like game dating apps
  • Enhanced user experience optimization
  • Improved social evaluation through ESG management
  • Expansion of IP licensing business
  • Adaptation to platform diversification
  • Efficient utilization of digital advertising
  • Strengthened collaboration with partner companies
  • Introduction of subscription models

Strategic Goals

  • Achieve net sales over 50 billion yen
  • Realize overseas sales ratio of 30% or more
  • Expand entertainment-related services business
  • Accelerate new game development using AI
  • Sustainable management and environmental impact reduction
  • Organizational strengthening through improved employee satisfaction
  • Advanced patent infringement risk management system
  • Market share expansion through strategic M&A
  • Expand global brand recognition
  • Diverse talent recruitment and diversity promotion

Business Segments

Game Development Outsourcing

Overview
Outsourcing business for game development and content production for other companies.
Competitiveness
Strong in original character design with high development capabilities
Customers
  • Game Publishers
  • Smartphone App Operators
  • Entertainment Content Companies
Products
  • Game Planning
  • Character Design
  • Programming
  • Testing and Operations

Technology Development and Operations Support

Overview
Provides game operation efficiency improvements and effective marketing support.
Competitiveness
Support leveraging operational know-how from technological strengths
Customers
  • Other Game Developers
  • Advertising Agencies
  • Marketing Companies
Products
  • Game Operations Tool Development
  • Data Analysis Services
  • User Engagement Improvement Support

Entertainment-Related Consulting

Overview
Planning and strategy support services leveraging industry expertise.
Competitiveness
Insights specialized in the smartphone game market
Customers
  • Venture Companies
  • Advertising and Promotion Companies
  • Investment Funds
Products
  • Content Planning Consulting
  • Market Analysis
  • Business Strategy Planning

Competitive Advantage

Strengths

  • Original character design capabilities
  • Expertise in smartphone game development
  • Multi-platform deployment capabilities
  • Solid financial base
  • Credibility as a listed company
  • Proven track record in IP utilization
  • Experienced management team
  • Patent-related risk management capabilities
  • User engagement enhancement capabilities
  • Experience in diverse game genres
  • Marketing know-how
  • Cloud technology utilization
  • Operations support capabilities
  • Rapid new development response
  • Diverse business portfolio

Competitive Advantages

  • Differentiation through original character designs
  • Strengthened legal framework for patent infringement response
  • Development strengths specialized in smartphone RPGs
  • Broad customer base and transaction record
  • Improved fundraising capabilities through listing
  • Experience releasing on diverse platforms
  • Expansion into entertainment-related services
  • Business model targeting niche market gaps
  • Ongoing user acquisition strategies
  • Active new game planning and development
  • Effective inheritance and utilization of strong existing IPs
  • Data-driven operations policy
  • User-friendly interface
  • Content delivery stability
  • Fusion of local focus and global expansion

Threats

  • Intensifying competition with major game companies
  • Risks from patent infringement lawsuits
  • Saturation of the smartphone game market
  • Rapid changes in user preferences
  • Rise of emerging platforms
  • Operational restrictions from strengthened regulations
  • Cyberattack and data breach risks
  • Impacts from smartphone OS specification changes
  • Cultural barriers to overseas market entry
  • Intensifying competition for talent acquisition
  • Rising development costs
  • Surging advertising expenses

Innovations

2023: Feature Expansion for New RPG 'Memento Mori'

Overview
Added original scenarios and character enhancement features to improve user experience.
Impact
15% improvement in user retention rate

2023: Market Expansion for Game Dating App 'Koi niwa'

Overview
Acquired new customer segments by fusing game and romance elements.
Impact
20% increase in new registrations

2022: Development of User Asset Management System for Ended Titles

Overview
Rationalized user data management for discontinued games to ensure reliability.
Impact
Improved customer satisfaction and reduced legal risks

2021: Introduction of AI-Based Game Balance Adjustment Technology

Overview
Achieved appropriate difficulty design using AI analysis of player behavior data.
Impact
10% improvement in monetization rate

2020: Enhanced Cross-Platform Compatibility

Overview
Introduced technology to smooth game play across multiple platforms.
Impact
Increased users and operational efficiency

Sustainability

  • Promoting paperless operations to reduce environmental impact
  • Improving work environment and advancing work-style reforms
  • Promoting community collaboration for social contributions
  • Awareness activities for healthy game usage
  • Strengthening privacy protection and information security
  • Improving workplace for diversity promotion
  • Participation in programs for employing people with disabilities
  • Introduction of employee health support programs
  • Adoption of sustainable IT infrastructure
  • Support for local events and cultural activities