Marvelous profits in fiscal Q1 -- by cutting back on game releases

Marvelous Entertainment has, in the recent past, been reporting disappointing earnings. Well, not even "earnings." Losses. To combat those losses, the company reduced its slate for fiscal 2011, a strategy that appears to have worked.

In its last fiscal quarter (which ended June 30), Marvelous's digital content division had ¥71 million ($829,000) in profit. The same quarter last year saw $1.5 million in losses! According to Siliconera's summary of the report, the boosted performance has more to do with reduced costs than game sales -- sales were actually down 55.4% year-over-year. Marvelous released just three games in the quarter, including No More Heroes: Heroes' Paradise.

This article was originally published on Joystiq.