Declining RevenueSustained top-line contraction erodes scale advantages and limits reinvestment into new titles and marketing. Over months this can signal product-market fit or execution issues, reduce bargaining power with partners, and make it harder to rebuild a profitable growth trajectory.
Severe Cash Flow DeteriorationDramatic free cash flow decline and negative operating cash flow create persistent liquidity pressure that can force external financing, slow game development, or cut marketing. Over the medium term this weakens execution capacity and increases risk of dilutive capital raises.
Negative Profitability And Poor ROENegative margins and a deeply negative ROE indicate inefficient use of shareholder capital and persistent unprofitable operations. Structurally, this undermines the company’s ability to attract investment, retain talent, and scale profitable franchises without a clear operational turnaround.