Red Entertainment

What Red Entertainment does

Red Entertainment Corporation (株式会社レッド・エンタテインメント) is a Japanese game development and character content studio headquartered in Taito-ku, Tokyo, and operating as a subsidiary of Oizumi Group since November 2014. Founded in its current corporate form in December 2000, with predecessor roots tracing to 1976, the company specializes in visual novels, adventure games, RPGs, and otome (female-oriented romance) titles. Its core technical competencies span manual game planning, 2D and 3D graphic development, scenario writing, character design, and music production, with execution heavily reliant on a network of contracted artists, writers, and specialized production subcontractors (including WIZARDSOFT, Cre-p, sunbird, IKY, Sucseed, Japan Art Media, and Grand-Design) given a small internal headcount of 12 employees as of April 2018. The company's owned IP portfolio — most notably the GUNGRAVE franchise (active since 2002), the BIRUSHANA series, SCARED RIDER XECHS, and Our World Is Ended. — is monetized across console, handheld, PC, browser, and free-to-play formats via publishing partners such as D3 Publisher, Idea Factory/Otomate, MAGES., PQube, Beep Japan, and Lionsfilm.

The business operates five primary revenue streams: (1) one-time game sales and licensing through publisher partners, (2) professional game development services under comprehensive and partial consignment models, (3) direct-to-consumer merchandise and music/drama CD sales through RED STORE and LABEL RED sub-brands, (4) outbound IP licensing and brokerage for both owned and third-party content, and (5) one-time/subscription video courses on digital illustration sold via Udemy. Pricing across consumer games is standardized at Japanese retail points (e.g., ¥6,500–¥9,350 for Switch editions, ¥650 per lottery merchandise draw), while browser-based Cryptobattle Journey operates on a freemium model. Customer segments span enterprise (game publishers commissioning development or licensing IP), persona-driven B2C (otome and visual-novel enthusiasts, media-mix fans), and SMB/long-tail (aspiring digital artists consuming Udemy courses). Go-to-market combines direct-to-consumer e-commerce and convention/event sales (Tokyo Game Show, Super Comic City, Anime Expo) with publisher-mediated retail and digital storefront distribution across PlayStation, Nintendo Switch, and PC platforms, supported by title-specific Twitter accounts, YouTube promotional content, and email/newsletter campaigns.

Name

Red Entertainment

Legal name

Red Entertainment Corporation

Website

https://red-entertainment.co.jp

Company type

Private

Founded year

2000

Operating status

Operating

Headcount range

11–50 employees

Short description

Red Entertainment is a Tokyo-based Japanese game development and character content studio, subsidiary of Oizumi Group, that creates visual novels, otome games, and RPGs including GUNGRAVE and BIRUSHANA, and monetizes them via publisher partnerships, IP licensing, merchandise (RED STORE, LABEL RED), and Udemy illustration courses.

Ownership category

akta.pro rank

Product category

Video Game Development

NAICS

Arts, Entertainment, and Recreation (71)

SIC

Services-Miscellaneous Amusement & Recreation (7990)

akta.pro primary industry

Co-Development, Porting & Remaster Studios (MPAFAAAM)

akta.pro secondary industry

Gaming Collectibles, Merchandise & Toys Retail (CRACAFAI)

Keywords

• Game development
• Visual novel games
• Otome games
• IP licensing
• Character merchandise

Headquarters

HQ city

Tokyo

HQ country

Japan

HQ region

Asia

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Software

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Supply Chain, Others

Revenue model

1. Game Sales and Licensing: Revenue is generated from developing and publishing original game titles sold through retail and digital channels (console, handheld, PC). The company also licenses its original IP (GUNGRAVE, BIRUSHANA, SCARED RIDER XECHS, etc.) to third-party publishers and platform holders, earning licensing fees and royalties.
2. Development Services (OEM/Consignment): Red Entertainment provides game development services under comprehensive and partial consignment models, offering one-stop service from planning to development and operation for external clients. Services span game planning, graphic development, scenario writing, and ongoing operation support.
3. Merchandise and E-commerce: RED STORE is the company's direct-to-consumer e-commerce website offering CDs, games, character-themed products, and event-exclusive goods. LABEL RED produces and distributes character songs and drama CDs. Revenue is generated through product sales and limited-edition merchandise.
4. IP Licensing Outbound: The company brokers licensing agreements for both its own content and content owned by partner companies, leveraging its established network with Japanese and overseas enterprises. Revenue is generated through copyright licensing fees for characters and works.
5. Video Course Sales: The company produces and distributes video-based training courses on digital illustration techniques via the Udemy platform, targeting aspiring artists in the game and anime industries.

Pricing tiers

Go-to-market motion3 records

Distribution channels7 records

Marketing channels7 records

Core offering

Red Entertainment Corporation is a Japanese game development and character content studio that plans, develops, and produces visual novel, adventure, RPG, and otome games for console, handheld, PC, and browser platforms. The company also provides commissioned game development services, content planning and producing, IP licensing for its own and partner content, and sells character merchandise and music through its RED STORE e-commerce site and LABEL RED music label. Additional offerings include digital illustration training courses distributed via Udemy.

Product overview

Red Entertainment is a Japanese game development and character content company offering comprehensive entertainment services including game development (comprehensive and partial consignments), content planning and producing, IP licensing for original and licensed content, and merchandise sales under the LABEL RED and RED STORE sub-brands. The company also provides educational video courses teaching digital painting techniques. Key game titles include the GUNGRAVE series, Scared Rider Xechs, Birushana Senki series, and Our World Is Ended. The product portfolio spans console games, visual novels, browser-based games, and character merchandise.

Differentiator

Problem solved

Functional benefit

Brands

• LABEL RED: Original label producing character songs, drama CDs and various other character-themed products.
• RED STORE

Products and services

• Game Development Services (OEM / Consignment) Comprehensive and partial game development consignment services for external clients, spanning game planning, 2D and 3D graphic development, scenario writing, and ongoing operation support for console and social games. Offered as one-stop service from initial planning through development and operation.
• Planning / Producing Services Content creation services from worldview and character development through to production across games, anime, manga, merchandising, and live events. Offered to publishers and media companies seeking comprehensive content planning capabilities.
• IP Licensing Services Licensing services for Red Entertainment's own original content and brokerage of licenses for other companies' characters and works. Leverages the company's established network with Japanese and overseas enterprises to facilitate copyright licensing for games, merchandise, anime, and other media.
• LABEL RED Original music label producing and distributing character songs, drama CDs, and various character-themed products. Releases are distributed digitally and physically to consumers.
• RED STORE E-commerce website offering CDs, games, and original products directly to consumers, including event-exclusive goods and limited benefits not available through other channels.
• Cryptobattle Journey (クリプトバトルジャーニー) Web browser-based trading card RPG set 800 light years from Earth where players build decks, defeat enemies, and strengthen their traveler characters. Available on PC web browsers via the LIONGAME platform with freemium pricing.
• Digital Illustration Video Courses (Udemy) Photoshop painting technique tutorials taught by company staff, covering watercolor, anime-style, thick painting, and visual novel game illustration styles. Distributed via the Udemy platform for aspiring game and animation artists.
• GUNGRAVE Franchise Flagship original action game franchise originally released for PlayStation 2 in 2002, expanded into anime, manga, and subsequent game titles including GUNGRAVE G.O.R.E Ultimate Enhanced Edition released in January 2024 by Beep Japan.
• BIRUSHANA Senki Series Otome (female-oriented) visual novel game franchise released on Nintendo Switch in collaboration with Idea Factory's Otomate brand. Includes BIRUSHANA Senki ~Genpei Higanbana~ (September 2020) and BIRUSHANA Senki ~Ichizoku no Kaze~ (March 2022).
• DesperaDrops (デスペラドロップス) Otome visual novel game released in November 2023 and published by D3 Publisher, Inc. on console and handheld platforms. Programming by WIZARDSOFT Corporation with background art by Cre-p and character/event CG contributions from multiple partner studios.

Quantifiable outcome

• Over 40 years of content development heritage spanning predecessor Red Company (est. 1976) to present
• +1 more outcomes

Named customers4 records

Segments5 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Four partnerships are on record, tiered minor and core.

• NCSOFT (LineageW Collaboration)minorGTM or Marketing Partner · 21 November 2023NCSOFT collaborated with Red Entertainment's GUNGRAVE franchise for a cross-promotion with LineageW (November 2023), expanding the GUNGRAVE IP's reach into the Korean MMO gaming market.
• D3 Publisher, Inc.coreChannel Partner/ Reseller/ Distributor · 1 November 2023D3 Publisher publishes and distributes Red Entertainment's titles, including DesperaDrops and Our World Is Ending, released in November 2023. The partnership is a key publishing channel for Red Entertainment's game releases on console and handheld platforms.
• LionsfilmminorStrategic or Co-development Partner · 27 May 2021Lionsfilm partnered with Red Entertainment for the development and publishing of Cryptobattle Journey (クリプトバトルジャーニー), a PC browser-based card battle RPG released in May 2021. Lionsfilm operates the game platform.
• Otome × RED Collaboration (Idea Factory)coreStrategic or Co-development PartnerRed Entertainment collaborates with Idea Factory's Otome brand (オトメイト) for female-oriented (otome) game titles. The partnership has produced BIRUSHANA series titles (ビルシャナ戦姫 ～源平飛花夢想～ and its fandisk), combining Red Entertainment's development expertise with Idea Factory's otome marketing network.

Scale indicators3 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Idea Factory / Otomate: Parent of the Otomate brand and a direct co-development/publishing partner for BIRUSHANA. Operates as both an otome-focused publisher and developer, making it the closest comparable in genre, audience, and go-to-market model.
• Compile Heart: Sister company under Idea Factory, focused on JRPG and character-driven console titles. Listed among Red Entertainment's distribution partners; very comparable in scope (niche JRPG/visual novel console publishing) and audience.
• Spike Chunsoft: Developer/publisher of narrative-heavy franchises like Danganronpa and Zero Escape, with a planning heritage comparable to Red Entertainment's scenario-driven strengths and a console-only release cadence in similar genres.
• Broccoli Corporation: Long-standing Japanese developer/publisher of otome-focused IPs (Uta no Prince-sama, Kamigami no Asobi). Closely comparable in target audience, console otome publishing model, and media-mix merchandising strategy.
• D3 Publisher: Core publishing partner responsible for DesperaDrops and Our World Is Ended. Comparable as a mid-sized Japanese console publisher that picks up character-driven and niche-genre titles for retail and digital release.
• MAGES. (formerly 5pb.): Publishing partner for Judgement 7 and a major Japanese visual novel/adventure label (Steins;Gate, Chaos;Child). Directly comparable in narrative console visual novels, scenario writing specialization, and otome-leaning catalog.

Emerging players

• Type-Moon: Independent Japanese visual novel studio (Fate/stay night, Tsukihime) with extensive media-mix IP monetization. Comparable in scenario-led narrative game development and the ability to scale franchise value through licensing.
• Acquire Corp: Japan-based developer/publisher with a track record in visual novel and adventure games (e.g., Octopath Traveler collaborations, Asobi ni Iku yo). Similar small-team console development posture and genre overlap.

Broad incumbents

• Nippon Ichi Software: Established Japanese publisher (Disgaea, Rhapsody) with an SRPG and narrative-game portfolio. Comparable as a console-niche publisher that uses third-party developer partnerships and franchise media-mix.
• Marvelous Inc. Mid-cap Japanese publisher whose lineup blends character-driven action games with adjacent visual novel sub-brands. Comparable in character-IP focus and console distribution model, though broader in genre scope.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks5 records

Key highlights7 records

Customer concentration

• Xx.com/red_srx
• YouTubetwitter.com/J7_oreowa

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Red Entertainment