Company: GCL
Filing Date: 2025-04-08
Form Type: 424B3
Source: 0001213900-25-029989
Chunk: 32

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-08
Form: 424B3
Chunk 32
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 greater expenses to market our titles.

While digital sales are increasingly
important to our business, for physical sales, retailers have limited shelf space and promotional resources. Competition is intense among
newly introduced interactive entertainment software titles for adequate levels of shelf space and promotional support, with most and highest
quality shelf space devoted to those products expected to be best sellers. We cannot be certain that our new game products will consistently
achieve top seller status. Competition for retail shelf space is expected to continue to increase, which may require us to increase our
marketing expenditures to maintain desirable sales levels of our titles. Competitors with more extensive lines and more popular titles
may have greater bargaining power with retailers. Accordingly, we may not be able, or we may have to pay more than our competitors, to
achieve similar levels of promotional support and shelf space. Similarly, as digital sales increase in importance to our business, there
is increasing competition for premium placements of products on websites. Such placement is subject to many similar risks as physical
shelf space discussed above.

Our publishing business is partly dependent on our ability to enter into successful software development arrangements with third parties.

The success of our publishing
business depends on our ability to continually identify and develop new game titles in a timely fashion. We rely on third-party software
developers for the development of most of the game titles we publish. Quality third-party developers are continually in high demand, and
those who have co-developed titles for us in the past may not be available to develop software for us in the future. Due to the limited
availability of third-party software developers and the limited control that we exercise over them, these developers may not be able to
complete game titles for us on a timely basis or within acceptable quality standards, if at all. We have entered into agreements with
third parties to acquire the rights to publish and distribute games. These publishing agreements typically require us to make development
payments, pay royalties, and satisfy other conditions. Our development payments may not be sufficient to permit developers to develop
new software successfully, which could result in material delays and significant increases in our costs to bring particular products to
market. Software development costs, promotion and marketing expenses and royalties payable to software developers and third-party licensors
have continued to increase and reduce our profit margin. Future sales of our titles may not be sufficient to recover development payments
and advances to software developers and licensors, and we may not have adequate financial and other resources to satisfy our contractual
commitments to such developers. If we fail