A new blue ocean for IP operation companies? Sanrio, the parent company of HelloKitty, launches a gaming brand
Sanrio announces the establishment of an independent gaming brand, planning to release 10 games in the next three years with a total investment of about 10 billion yen. This is a key move by the Hello Kitty parent company to systematically extend its IP portfolio into the interactive entertainment sector.
On Tuesday, April 21, Sanrio Gaming Company announced that the first game under its new brand "Sanrio Games" will launch this fall as a console game for Nintendo Switch and Switch 2 platforms, with the second game expected to be released by March 2027.
The company stated that the games will feature its "extensive" character assets, allowing players to create their own virtual avatars in towns themed around Sanrio characters.
The gaming business is expected to incur short-term losses, with development costs for each project at approximately 2 billion yen. However, Sanrio said that these expected losses will not have a significant impact on the overall consolidated performance. In February, Sanrio raised its annual operating profit forecast by 7% to 75.1 billion yen, showing confidence in fundamental demand as it expands into new business sectors.
Gaming Expansion: Accelerating IP Monetization
Sanrio's move into the gaming market is a microcosm of Japanese IP-holding companies seeking diversified revenues. Peers like Bandai Namco Holdings and Nintendo have long adopted similar strategies, extending character assets horizontally into games and other media.
According to its mid-term management plan, Sanrio has mapped out a pipeline of at least six games, with a combined investment of around 10 billion yen (approximately $62.9 million) in development and marketing. Multiple games are currently in pre-production or full development stages.
The market holds a cautious outlook on Sanrio's gaming business. Iwai Cosmo Securities Senior Analyst Tomoaki Kawasaki commented:
If Sanrio manages to create a hit game, it could become a new growth driver, but at this stage, gaming revenue still contributes very little to overall results. The key to success is whether Sanrio can leverage its strong character IP portfolio to deliver truly appealing game content.
The gaming business is only one of Sanrio’s initiatives to broaden monetization channels for its characters.
The company is also advancing its presence in film. A Hello Kitty themed movie is scheduled for global release in July 2028, marking the IP’s Hollywood debut.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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