Capital Allocation RiskLarge cash balances without clear reinvestment plans can reflect under-deployment of capital. Over months this can cap growth potential, reduce returns on equity, and leave the company vulnerable to competitors that better monetize content or scale faster through targeted investment.
Hit-driven IP RelianceRevenue durability depends on continuously finding and developing breakout titles. This hit-driven model introduces structural variability: a weak pipeline or failed launches can materially slow growth and licensing income over multiple quarters without rapid offsetting releases.
Small Workforce / Scale LimitA relatively small headcount can constrain content output, marketing reach, and deal execution for media-mix expansions. Over the medium term, limited scale may slow title discovery, licensing negotiations, and geographic or channel expansion versus larger competitors unless offset by partnerships or hiring.