For almost three years the Nikkei 225 has been tracking its performance from the 2003~5 bull market, albeit at levels some 3.3x higher In this report, Pelham Smithers discusses the similarities and asks three key questions: (1) Can we continue to track 2005 through the rest of the year; (2) Whatever happens in Q4, should we fear or be hopeful for 2026? And (3) Who are the upcoming winners and losers.
Switch 2, Hello Kitty and Demon Slayer have underlined the success of Japan’s global pop culture influence. In this review, Pelham Smithers discusses whether 2025 will be the peak, or if there more to come. In light of the capital limitations faced by Japanese game developers evident at TGS2025, Pelham thinks further consolidation is likely and suggests three likely scenarios.
Pelham Smithers outlines Capcom’s game line-up and new lines of business, with the move to mobile, in addition to its strong PC / console game offering. Earnings growth for FY26~FY27 is set to expand at a double-digit rate, taking the OPM to 43%, up from 39% in FY25. Our FY27 EV/OP of 19x is below that of Take Two’s 21x, despite the high expectations for GTA6.
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