Despite the success and expansion of its popular Cookie Run series, South Korean studio Devsisters has reported an operating loss of 17.4 billion Won (roughly $11.7 million USD) and a net loss of 15.1 billion Won ($10.1 million USD) for its Q1 2026 earnings (source: Thisisgame). To tackle the big deficit, the company presented several “specific cost management strategies” and a roadmap to help it return to profitability.
The cost management strategy includes four key points:
1. The implementation of rigorous management reforms through executive accountability and a newly established “Cost Management Task Force”
2. The review of the entire company’s portfolio and adjusting the investment strategy to focus on “selection and concentration”
3. Transition to a “highly efficient, core-talent-centered organization” through active adoption of new technologies
4. Streamlining the organization by reducing new hires, promoting internal transfers, and offering company-wide voluntary resignations
Some might take issue with the voluntary resignation strategy, but Devsisters also announced that it is tightening its belt across all departments. Co-chairs of the board of directors, for instance, will be working without pay. Likewise, the compensation of key executives will be cut by 50%. When it comes to new hires, recruitment will temporarily be limited to essential positions.
Devsisters’ decrease in profitability stems from a variety of factors, which include the lackluster performance of the recently released Cookie Run: OvenSmash and updates to existing live services games falling short of expectations. While the studio continues to push development and support for its Cookie Run franchise, it is also working on other titles, such as a 2D marine platformer codenamed “Project Mish.”
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