Declining Revenue TrendsSustained revenue declines signal weakening product portfolio or failed title launches. For a live-service model, falling revenues reduce funding for content updates and user acquisition, risking user churn and a self-reinforcing downward cycle that impairs long-term growth prospects.
Weak Cash GenerationNegative operating cash flow and shrinking free cash flow undermine the company's ability to finance development, marketing, and investments organically. Persistent cash shortfalls may force asset sales, equity raises, or cuts to content roadmaps, harming competitive positioning.
Revenue Volatility & Business Mix RiskProfitability volatility and reliance on game lifecycles plus variable blockchain/investment returns create unpredictable earnings. This structural mix raises forecasting risk and can impair strategic planning, making sustained reinvestment and user retention strategies harder to execute.