Hello Kitty creator Sanrio launches gaming brand to tap fast-growing global market
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Sanrio Games will incorporate its characters into a party game for Nintendo Switch and Switch 2 formats.
PHOTO: BLOOMBERG
TOKYO - Hello Kitty creator Sanrio is launching a new gaming brand as it looks to monetise its portfolio of popular characters and tap into the fast-growing global games market.
Sanrio Games will incorporate its characters into a party game for Nintendo Switch and Switch 2 formats, the company said on April 21. Some 10 titles will be released over the next three years, with the first coming this fall as a console game.
Sanrio’s push into gaming reflects a broader trend among Japanese intellectual property owners to diversify revenue by extending popular franchises into interactive entertainment.
Domestic peers such as Bandai Namco Holdings and Nintendo have long pursued similar strategies, leveraging character assets across games and other media.
“Games provide an opportunity to expand a range of characters into the North American market,” Sanrio chief executive Tomokuni Tsuji said. “This will have significant value for our licensing business going forward.”
Games will use a “wide range” of Sanrio characters, the company said. Players will be able to create their own avatars in a town featuring Sanrio characters.
Several titles are in pre-production and full development, with a second slated for release by the end of March 2027.
Under its medium-term management plan, Sanrio has outlined a pipeline of at least six titles and a total investment of about 10 billion yen (S$79.9 million) in development and marketing over the period.
With development costs at around 2 billion yen per project, the standalone gaming business is expected to post a loss. Sanrio has said the anticipated losses are not expected to have a significant impact on overall consolidated performance.
“If they produce a hit title, it could become a growth driver, but at this stage, the contribution to gaming revenue to overall performance is limited,” said Mr Tomoaki Kawasaki, a senior analyst at IwaiCosmo Securities.
“The key to success will be whether Sanrio can leverage their strong portfolio of characters to deliver compelling titles.”
Sanrio has been working to broaden revenue streams for its characters, including expansion into film.
A Hello Kitty movie is set for global release in July 2028, marking the character’s Hollywood debut.
In February, Sanrio raised its full-year operating profit forecast by 7 per cent to 75.1 billion yen, signalling confidence in underlying demand as it expands into new business areas. BLOOMBERG