Under the revised strategy, the Company will progressively optimize its third-party publishing business in casual titles, and in particular in the social casino category, and will direct its resources toward the development and distribution of AI-generated content.

In connection with this shift, the Company has begun managing its existing portfolio of casual and social casino titles on a cash flow- and profitability-oriented basis, with user acquisition and operating expenditure allocated according to return on investment rather than scale of installed base. This approach took effect during the current quarter and applies across the existing game portfolio.

The strategic shift reflects both the Company's assessment of structural conditions in the casual publishing market and its view of the opportunity presented by generative technologies. In the casual category, user acquisition economics have been reshaped in recent years by several converging factors: the contraction of addressable audiences in mature markets, the reduction in attribution and targeting signal available to advertisers on major mobile platforms, and sustained competition for paid media inventory. Together, these factors have compressed the margin available at the publishing layer of the value chain. At the same time, the Company believes that generative technologies are altering the cost structure of content production itself — shortening development cycles, lowering the marginal cost of producing and iterating on content, and, most significantly, broadening the range of participants able to produce content at all.