IP Operation Company New Blue Ocean? Sanrio, the parent company of Hello Kitty, launches a game brand
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Sanrio announces the establishment of an independent gaming brand, planning to release 10 games over the next three years with a total investment of about 10 billion yen, marking an important move for the Hello Kitty parent company to systematically extend its IP portfolio into interactive entertainment.
On Tuesday, April 21, Sanrio Game Company announced that the first game under the new brand "Sanrio Games" will launch this fall as a console game on Nintendo Switch and Switch 2 platforms, with the second title expected before March 2027.
The company stated that the game will integrate its "wide range" of character assets, allowing players to create personal avatars in a town themed around Sanrio characters.
The gaming business is expected to incur losses in the short term, with each project development costing about 2 billion yen. However, Sanrio said this anticipated loss would not have a significant impact on overall consolidated results. In February this year, Sanrio already raised its full-year operating profit forecast by 7% to 75.1 billion yen, demonstrating the company’s confidence in fundamental demand as it expands into new business areas.
Game Deployments Accelerate IP Monetization
Sanrio’s move into the gaming market is a microcosm of Japanese IP holding companies seeking diversified income. Peers such as Bandai Namco Holdings and Nintendo have long adopted similar strategies by extending their character assets into games and other media.
According to its mid-term management plan, Sanrio has already lined up at least six games for development, with a total investment of about 10 billion yen (approximately $62.9 million) in both game development and marketing. Several titles are currently in pre-production and full development stages.
The market holds a cautious outlook for Sanrio’s gaming business. Iwai Cosmo Securities senior analyst Tomoaki Kawasaki stated:
If a hit game is developed, it could become a new growth driver, but at this stage, gaming revenue remains very limited in terms of overall performance. The key to success lies in whether Sanrio can leverage its strong character IP portfolio to launch truly compelling gaming content.
The gaming business is just one of Sanrio’s initiatives to broaden monetization channels for its characters.
The company is also pushing forward in the film industry, with a Hello Kitty-themed movie scheduled for global release in July 2028, marking the Hollywood debut of the IP.
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