Hello Kitty creator Sanrio Co is launching a new gaming brand as it looks to monetise its popular characters and expand into the fast-growing global video games market.
The new division, Sanrio Games, will feature the company’s characters in a party-style game for Nintendo Switch and Switch 2 consoles. Around 10 titles are planned over the next three years, with the first release expected this fall.
The games will include a wide range of Sanrio characters and be set in a themed town where players can create and customise their own avatars.
Several titles are already in pre-production and development, with a second game scheduled for release by March 2027. Sanrio has outlined plans for at least six titles under its medium-term strategy, with total investment of about ¥10 billion (US$62.9 million or RM250 million) for development and marketing.
The company said the gaming business may initially post losses due to high development costs of around ¥2 billion per title, but added that this is not expected to have a significant impact on overall group performance.
Analysts said the success of the new venture will depend on whether Sanrio can fully leverage its strong character portfolio to create engaging game content, noting that any hit title could become a key growth driver.
Sanrio’s move reflects a wider trend among Japanese intellectual property owners, such as Bandai Namco Holdings and Nintendo, which have long expanded popular characters into gaming and other entertainment formats.
The company has also been expanding its characters into other media, including film. A Hello Kitty movie is scheduled for global release in July 2028, marking the character’s Hollywood debut.
In February, Sanrio raised its full-year operating profit forecast by 7% to ¥75.1 billion, reflecting confidence in demand as it expands into new business areas.
