(April 21): Hello Kitty creator Sanrio Co is launching a new gaming brand as it looks to monetise its portfolio of popular characters and tap into the fast-growing global games market.
Sanrio Games will incorporate its characters into a party game for Nintendo Switch and Switch 2 formats, the company said Tuesday. Some 10 titles will be released over the next three years, with the first this fall as a console game.
Sanrio’s push into gaming reflects a broader trend among Japanese intellectual property owners to diversify revenue by extending popular franchises into interactive entertainment. Domestic peers such as Bandai Namco Holdings Inc and Nintendo Co have long pursued similar strategies, leveraging character assets across games and other media.
Games will use a “wide range” of Sanrio characters, the company said. Set in a town featuring Sanrio characters, players will be able to create their own avatars.
Several titles are in pre-production and full development, with a second slated for release by the end of March 2027. Under its medium-term management plan, Sanrio has outlined a pipeline of at least six titles and a total investment of about ¥10 billion (US$62.9 million or $80 million) in development and marketing over the period.
While performance will depend on sales, the standalone gaming business is expected to post a loss, with development costs around ¥2 billion per project. Sanrio has said the anticipated losses aren’t expected to have a significant impact on overall consolidated performance.
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“If they produce a hit title, it could become a growth driver, but at this stage, the contribution to gaming revenue to overall performance is limited,” said Tomoaki Kawasaki, a senior analyst at IwaiCosmo Securities Co. “The key to success will be whether Sanrio can leverage their strong portfolio of characters to deliver compelling titles.”
Sanrio has been working to broaden revenue streams for its characters, including expansion into film. A Hello Kitty movie is set for global release in July 2028, marking the character’s Hollywood debut.
In February, Sanrio raised its full-year operating profit forecast by 7% to ¥75.1 billion, signalling confidence in underlying demand as it expands into new business areas.
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