Company: GCL
Filing Date: 2025-07-31
Form Type: 424B3
Source: 0001213900-25-070094
Chunk: 99

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 424B3
Chunk 99
---
 and offset
by decrease of approximately $2.7 million in game publishing revenue.

Key Factors that Affect Operating Results

Our business, financial
condition and results of operations have been, and are expected to continue to be, affected by a number of factors, which primarily include
the following:

Distribution arrangements with game publishers and studios to sell “hit” game titles

We derive our revenue primarily
from sales to retailers and consumers of console games and game codes and distributing gaming content that are compatible with major gaming
consoles and PCs to resellers. We sold 50, 51 and 44 new game titles in addition to back catalog games during the fiscal year ended March
31, 2025, 2024 and 2023, respectively. We have forged multi-year distribution deals with international video game publishers and studios
to sell selected game titles within certain territories in Asia. We have sold more than 14.1 million of physical and digital copies of
video games during the past three fiscal years. Our success will continue to depend on our ability to obtain the distribution rights for
“hit” game titles which can create sequels and incremental revenue opportunities through add-on content and merchandise. The
success of the games we distribute also depends, in part, on unpredictable and constantly changing factors beyond our control including
consumer preferences and spending habits, competing games and the availability of other entertainment experiences. Our ability to negotiate
with resellers and platform partners, and to add sales channels in territories outside of the countries we currently distribute games
can determine our continued success in the game distribution business.

<div align='center'>59</div>

Growth in the game publishing business and game IP development

4Divinity was formed in 2022
as a Group Subsidiary dedicated to games publishing and game development. As of the date of this Report, GCL Group has either published
or co-published a total of twelve game titles, generating publishing revenue from digital sales of games sold on the Steam, Xbox and PlayStation
platforms. Our success in growing the game publishing business will depend on our ability to identify global game designing talents, and
partner with game developers, publishers, and brand owners to create original content and entertainment properties. To further expand
our game titles offerings, we have started extensive planning of a large scale game development project since early 2024. For instance,
in December 2024, Nekcom signed a publishing agreement with us appointing 4Divinity as Nekcom’s global