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Tose, one of Japan's largest game companies specializing in commissioned development work, says it plans to actively prioritize orders for console games over mobile games going forward (source: Finanical Results Briefing for September 2024 to May 2025, p3).

For context, Tose has been doing behind-the-scenes development work for big clients like Nintendo, Square Enix, Capcom and Bandai Namco for decades. Although the company isn't credited on many of the projects its involved in, Tose is the developer behind a huge list of games dating to the NES era, with some more recent titles including Crisis Core Final Fantasy VII, Paper Mario: The Thousand-Year Door and Tales of Graces f Remastered.

In its financial statement for the nine-month period from September 2024 to May 2025, Tose reported significant revenue growth driven by intensified development activities on multiple major game projects (this comes as a big turnaround compared to the large-scale losses the company saw in the 2023/2024 fiscal year).

On the other hand, Tose says that revenue from the mobile titles it runs has remained mostly flat year-over-year. Rather than pursuing more work in mobile games, the company has decided to prioritize accepting orders for console game development. The reason they cite is "intensifying competition in the mobile market."

Although it depends on the contract, developers of mobile games are paid not only initial development fees, but also fees related to post-launch updates and events. They may even receive revenue-based incentives, which makes live-service mobile games a lucrative deal for contractors (as pointed out by GameBiz).

However, it seems that due to Japan's mobile market growing saturated, Tose has judged that developing and running mobile game projects may not be as profitable as it used to. In the previous fiscal year, 35.3% of Tose's revenue came from mobile games. This share has dropped to 22.5% as of May 2025, and will likely continue to shrink as Tose prioritizes console games.

Major Japanese co-development studio Tose decides to prioritize console game development in face of mobile market’s saturation - AUTOMATON WEST

As Japan's mobile market grows increasingly saturated, contract developer Tose will be prioritizing orders for console games over mobile games.

automaton-media.com

 

[nial]

Surprised at the employee count (657 employees as of last year), I hope they don't shut down given their legacy.

 

[Utamaru1706]

However, it seems that due to Japan's mobile market growing saturated, Tose has judged that developing and running mobile game projects may not be as profitable as it used to.

lol, this is a really weird way for saying "we gave up on the mobile market, because we can't compete with the Chinese and Korean games".

 

[Killer8]

Hopefully live service developers also give up soon due to saturation.

 

[Dr. Wilkinson]

Paper Mario 64 remake next!! Do it, Nintendo!

 

[Saber]

All this is meanless if they go to the GaaS route on consoles. Its already saturated with putrid games everywhere.

 

[Holammer]

Tose should make a name for themselves. Make the company name a brand, develop their own properties.

 

[Jinzo Prime]

Major Japanese co-development studio Tose decides to prioritize console game development in face of mobile market’s saturation - AUTOMATON WEST

As Japan's mobile market grows increasingly saturated, contract developer Tose will be prioritizing orders for console games over mobile games.

automaton-media.com

I take this to mean they have a lot of Switch 2 games in co-development. I wouldn't be surprised if they are helping with the Switch 2 deluxe upgrades for Switch 1 games, as they apperently helped port Breath of the Wild from Wii U to Switch.

I expect Nintendo is heavily leaning on Tose right now.