Taito profits down by half

TOKYO--Taito announced today that net profit for its 2005 fiscal year (April 1, 2004, to March 31, 2005) fell by 51.1 percent compared to the previous year. The company earned 1.72 billion yen ($16.2 million) in fiscal year 2005, whereas it earned 3.5 billion yen ($33 million) in FY2004.

While sales were up 1.9 percent for Taito, the year's profits were halved by some of the company's unsuccessful entertainment ventures.

Taito explains that its arcade games and 3D content for mobile phones sold well during the year, but the company's profits in the console market fell by 24.6 percent due to a lack of original titles.

Taito also attributes its shortfall to its arcade facilities, which have failed to provide a return on investment.

For FY2006, Taito plans to concentrate its operation funds toward mobile content and the development of arcade machines, while cutting costs in its console game departments and karaoke services. Next year, Taito hopes to increase its net income to 2.3 billion yen ($21.7 million), which would be a 33.9 percent rise from FY2005.