Gumi’s Crypto Profits Skyrocket Despite Gaming Revenue Plunge
Gaming giant Gumi just pulled off the ultimate pivot—crypto profits are surging while traditional game sales tank. Who needs pixels when you've got blockchain?
Digital Assets Save the Day
While gaming revenue craters, Gumi's crypto investments are printing money. The company's strategic shift into digital assets proves more lucrative than chasing in-app purchases and microtransactions.
Blockchain Over Board Games
Gumi's betting big on decentralized finance—and it's paying off. Their crypto portfolio's performance makes traditional gaming revenue look like pocket change. Talk about a power-up.
Because nothing says 'stable business model' like relying on the most volatile asset class known to finance—what could possibly go wrong?
Crypto Windfall Offsets Weak Game Revenue
Gumi announced that first-quarter revenue declined 52.5% year-on-year to $9.2 million (1.35 billion yen). Nevertheless, operating profit ROSE 11.0% to $491,000, while ordinary profit surged 371.1% to $8.3 million. Net income climbed to $8.4 million, marking a decisive turnaround from a $1.13 million net loss recorded a year earlier.
The company credited these results mainly to its cryptocurrency portfolio. Over the past six months, Gumi purchased $6.7 million (1 billion yen) in Bitcoin and recently confirmed plans to acquire $17 million worth of XRP. After applying mark-to-market accounting for these holdings, the company recorded $7.4 million in non-operating income, which helped offset weaker performance in other areas. Moreover, management indicated that ongoing blockchain initiatives will remain an essential earnings driver in future quarters.
Game Division Faces Sharp Downturn
Mobile gaming, the firm’s mainstay, has weakened over time. Sales fell 66.5% to $4.7 million. Gumi exited unprofitable titles, transferred some operations to outside partners, and sold subsidiary Alim. This segment recorded a $630,000 operating loss, reversing the prior year’s profit.
The company intends to emphasize third-party intellectual property titles rather than create original games. Management withheld a full-year forecast, citing unpredictable market conditions.
On the contrary, Gumi’s blockchain business delivered growth. Revenue increased with the launch of “Phantom of Kill—Alternative Imitation,” the first title in its OSHI3 fan-engagement project. Additional income came from crypto received through blockchain activities. The company plans to expand its blockchain initiatives further as its traditional gaming segment faces headwinds.
