Japanese game companies post record profits and earnings growth

Sanrio reported its highest ever sales and profit for the fiscal year ended March 2026, beating expectations and raising its dividend forecast to ¥38 per share. The company posted a net profit of ¥546 billion, driven by strong performance in licensing, merchandise and theme park operations.

Nintendo Systems announced a 14.7% increase in revenue to ¥5.077 billion and an 11.8% rise in operating profit to ¥2.32 billion for the same period. In contrast, Sony recorded a 10.9% decline in sales to ¥1.174 trillion and an 8.0% drop in operating profit to ¥559 billion.

Other major Japanese game publishers disclosed mixed results: Bandai Namco’s Q1 profit fell 3.8% to ¥98 million, while Koei Tecmo increased R&D spending by 4.4% to ¥115.78 billion. Capcom, Koei Tecmo and Square Enix discussed differing talent strategies, and Sony Interactive Entertainment posted a 29% jump in operating profit to ¥158.5 billion. The reports highlight divergent financial trajectories within Japan’s entertainment and gaming sector.