Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 7

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 7
---
 software, which
could further degrade the gamer experience or increase our costs. As such, we could fail to continue to effectively scale and grow our
technical infrastructure to accommodate increased demands. In addition, our business may be subject to interruptions, delays or failures
resulting from adverse weather conditions, other natural disasters, power loss, terrorism, cyber-attacks, public health emergencies (including
the COVID-19 pandemic or other future health epidemics or contagious disease outbreaks), or other catastrophic events.

We believe that if our gamers
have a negative experience with our games, or if our brand or reputation is negatively affected, gamers may be less inclined to continue
or to engage with us. As such, a failure or significant interruption in our service would harm our reputation, business, and operating
results.

A limited number of customers account for
a significant portion of our sales. The loss of a principal customer or other significant business relationship could seriously hurt our
business.

For each of the fiscal year
ended March 31, 2025 and 2024, sales to our four biggest customers in the aggregate accounted for more than half of our total consolidated
revenue. Our sales are made primarily without long-term agreements or other commitments, and our customers may terminate their relationship
with us at any time. Certain of our customers may decline to carry products containing mature content. The loss of our relationships with
principal customers and resellers or a decline in sales to principal customers or resellers, could materially adversely affect our business,
financial condition, and operating results. In addition, if our customers or resellers are subject to pricing pressures due to deteriorating
demand for our products, competition, or otherwise, such customers or resellers may pass those pricing pressures through to us, which
could materially adversely affect our business, financial condition and operating results.

Furthermore, our customers
may also be placed into bankruptcy, become insolvent, or be liquidated due to economic downturns, global credit contractions, or other
factors. Bankruptcies or consolidations of certain large retail customers could seriously hurt our business, including as a result of
uncollectible accounts receivable from such customers and the concentration of purchasing power among large retailers.

Increased competition for limited shelf
space and promotional support from retailers could affect the success of our business and require us to incur greater expenses to market
our titles.

Competition is intense among
newly introduced interactive entertainment software titles for adequate shelf space and promotional support, with most and highest quality
shelf space