KLab Abandons Expensive Mobile Development Model as Dragon Quest and My Hero Academia Games Become Priorities

Japanese mobile developer KLab is preparing a significant change in its development strategy, moving away from large-scale projects that require more than three years of production and investments of approximately three to five billion yen. The company’s revised approach was detailed in financial presentation materials examined by gamebiz on November 13, following KLab’s latest quarterly results.

Rather than committing substantial resources to additional expensive projects, management intends to concentrate on improving recently released games and developing more predictable sources of revenue. Two titles are receiving particular attention: Dragon Quest Smash Grow and My Hero Academia: United Survival. KLab plans to prioritise improvements to their operations and commercial performance while continuing to pursue partnerships involving established intellectual properties.

However, resource constraints mean that new development lines are not expected to begin forming until the second half of 2027. The company is also exploring artificial intelligence-assisted game development, including an initiative associated with Japan’s Ministry of Economy, Trade and Industry IP360 programme. That work remains at an early development stage and should not be confused with an announced commercial release.

High production values and famous licences can attract attention, but they do not guarantee sufficient player retention or spending to recover substantial development budgets. The shift illustrates how established studios are reconsidering the sustainability of mobile game investment.