Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 8

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 8
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 devoted to those games 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 our games 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 to satisfy our obligations under agreements with third-party developers and licensors, the
publishing agreements may be terminated or modified in ways that are burdensome to us and have a material adverse effect on our business,
financial condition, and operating results.

We have engaged, and expect to engage, third-party