Company: GCL
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-070094
Chunk: 17

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 424B3
Chunk 17
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petition in the video
game industry is intense. A relatively small number of “hit” game titles can account for a large portion of total sales revenue
in our industry. “Hit” game titles offered by our competitors may take a larger share of consumer spending than we anticipate,
which could cause our sales revenue to drop. As our business is also dependent upon our ability to develop “hit” game titles,
which require increasing budgets for development and marketing, the availability of significant financial resources has become a major
competitive factor in developing and marketing games. Some of our competitors have greater financial, technical, personnel, and other
resources than we do and are able to finance larger budgets for development and marketing and make higher offers to licensors and developers
for commercially desirable properties. For instance, large game publishers, such as NetEase and Tencent, and global interactive entertainment
companies such as Electronic Arts Inc. and Activision Blizzard, Inc. all have games that compete with the games we distribute or develop.
Some of these current and potential competitors have significant resources, can incorporate their own strong brands and assets into their
games, have a more diversified set of revenue sources than we do and may be less severely affected by changes in consumer preferences,
regulations or other developments that may impact our industry.

In addition, both the online
and mobile games marketplaces are characterized by frequent product introductions, relatively low barriers to entry, and new and evolving
business methods, technologies and platforms for development. Widespread consumer adoption of these new platforms for games and other
technological advances in and/or new business or payment models in online or mobile game offerings could negatively affect our sales of
console and PC games.

We also compete with a vast
number of small companies and individuals who are able to create and launch video games and other content for devices and platforms using
relatively limited resources and with relatively limited start-up time or expertise. The proliferation of titles in these open developer
channels makes it difficult for us to compete for gamers without substantially increasing our marketing expenses. Our game titles also
compete with other forms of entertainment, such as social media and casual games, in addition to motion pictures, television and audio
and video products featuring similar themes, online computer programs and other entertainment, which may be less expensive or provide
other advantages to consumers. Increasing competition could result in loss of gamers, increasing gamer acquisition and retention costs,
and loss of talent, all of which could harm our business, financial condition or results of operations.

We intend to grow our business