Damn man, you beat me to the punch was just about to release something on this name! Great write-up. Basically, it's very cheap, and if we land on a hit game that pulls above its weight, we're golden.
Dokkan isn't going to disappear. Games that last this long are sticky. There are countless examples in mobile and PC. PC has more history, and there are plenty of live service games that run profitably for 15+ years. Dokkan will keep printing money for many years.
I think they will continue to report profits company wide for years to come, albeit nothing too impressive. Cash burn will only happen if they ramp up spending / investments. They've been investing in their new game development platform / tech over the last couple years while still being profitable.
The pace of investments are will determine cash burn and they seem fairly conservative.
I haven't calculated a cash burn ex dokkan, but shouldn't be hard to do. Just look at their supplementary IR info they released which break down sales/op inc by division. They're investing up to 3 billion yen per new title. So every miss will be up to that much (amortized over a few years)
The company reported in IP (slide 16 of latest FY 2024 IP) that they will invest 20 bn yen in 4 years, or 5 bn yen per year. They also state they will spend 3 bn yen per title. So we are looking at 1.5-2 new title releases a year. But you have to offset this R&D cost with the profitability of existing titles.
Of course, in the area of live-ops that they are competing in, where they are trying to build original gaming IP, marketing dollars are also a hefty sum.
Damn man, you beat me to the punch was just about to release something on this name! Great write-up. Basically, it's very cheap, and if we land on a hit game that pulls above its weight, we're golden.
Hey F=U=C=K face, take ur scamming elsewhere, you are not welcome! No one here will fall for this.
Akatsuki Inc is a great name haha. Looks interesting, will look into this one as well.
Dokkan isn't going to disappear. Games that last this long are sticky. There are countless examples in mobile and PC. PC has more history, and there are plenty of live service games that run profitably for 15+ years. Dokkan will keep printing money for many years.
I think they will continue to report profits company wide for years to come, albeit nothing too impressive. Cash burn will only happen if they ramp up spending / investments. They've been investing in their new game development platform / tech over the last couple years while still being profitable.
The pace of investments are will determine cash burn and they seem fairly conservative.
I haven't calculated a cash burn ex dokkan, but shouldn't be hard to do. Just look at their supplementary IR info they released which break down sales/op inc by division. They're investing up to 3 billion yen per new title. So every miss will be up to that much (amortized over a few years)
Hey take ur scamming elsewhere, you are not welcome!
The company reported in IP (slide 16 of latest FY 2024 IP) that they will invest 20 bn yen in 4 years, or 5 bn yen per year. They also state they will spend 3 bn yen per title. So we are looking at 1.5-2 new title releases a year. But you have to offset this R&D cost with the profitability of existing titles.
Of course, in the area of live-ops that they are competing in, where they are trying to build original gaming IP, marketing dollars are also a hefty sum.
Hey F=U=C=K face, take ur scamming elsewhere, you are not welcome! No one here will fall for this.