Financial Glossary and Balance Sheet Summary
COGS and SG&A¹
(Unit: \ millions)
Total Cost of Revenue'
Royalty 2
3
HR cost (COGS) ³
Other (COGS) 4
FY2022
FY2023
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
¥21,924
¥24,966
¥28,131
¥30,757
¥34,233
¥32,804
¥35,908
¥34,993
9,013
9,142
11,186
10,679
14,529
11,206
11,378
8,768
8,671
10,960
11,451
13,958
13,861
14,857
17,681
19,504
4,240
4,864
5,494
6,120
5,843
6,741
6,849
6,721
Total SG&A'
HR cost
30,475
34,322
36,528
37,972
32,883
34,283
37,720
42,854
7,423
7,835
8,297
9,501
5,690
7,274
7,690
8,765
5
PG fee
8,480
10,909
11,201
9,507
10,448
9,828
11,625
9,084
R&D
5,790
6,637
6,449
7,054
5,944
5,666
6,093
6,916
Marketing/advertising expenses
4,856
5,564
6,734
8,563
6,709
7,219
7,669
11,380
Depreciation and amortization
1,065
934
996
752
795
907
910
1,696
Other
2,861
2,443
2,851
2,595
3,297
3,389
3,733
5,013
Other Income
6
Other Expense 7
Includes: impairment loss
160
136
122
157
344
583
293
513
275
2,286
241
2,219
1,402
1,389
1,555
1,040
318
611
2,697
1,489
1,026
287
353
1,374
1 Breakdown of COGS and SG&A are unaudited.
2 Royalty includes royalties paid to third-party developers in
order for us to obtain the right to publish their games.
3 HR cost includes salaries, bonuses and benefits for our live
game developers, who support post launch servicing, updating
and support for our games.
4 Other (COGS) primarily consists of depreciation and
amortization of assets related to existing games,
connection fees (mainly comprised of co-location and
datacenter fees, internet bandwidth and access fees),
and the costs of purchasing and maintaining our servers
and computer equipment.
5 PG fee in SG&A includes commissions made to external
payment gateway companies when users purchase in-
game items in PC Online games that we service. It also
includes mobile carrier-related commissions we pay
regarding our Japanese mobile browser games,
commissions we pay to Apple/Google regarding our
mobile native games globally, commissions we pay to
Steam regarding our PC online games globally and
platform commission fees related to mobile browser
games.
6 Other Income includes other non-operating income, reversal of
deferred revenue, gain on sale of properties, gain on change in
equity and gain on step acquisition.
7 Other Expense includes other non-operating expenses, loss on
sale/disposal of properties, loss on impairment of tangible fixed
assets, loss on impairment of intangible assets, loss on impairment
of other fixed assets and loss on change in equity. It also includes
impairment loss of game IPs and goodwill.
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