Company: GCL
Filing Date: 2025-09-09
Form Type: 424B3
Source: 0001213900-25-086274
Chunk: 18

Company: GCL Global Holdings Ltd
Filing Date: 2025-09-09
Form: 424B3
Chunk 18
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 and value of our securities could decline due to any of these risks, and you may lose all or part of your investment. This prospectus also contains forward-looking statements that involve risks and uncertainties. See the section entitled “Cautionary Note Regarding Forward-Looking Statements.”

Risks Related to the Company’s Business and Industry

Our business will suffer if we are unable to distribute and publish new game titles, “hit” game titles or sequels to such “hit” titles.

Our business depends on
distributing and publishing games that consumers will purchase, download and spend time and money playing. We currently distribute and
sell to retailers and consumers console games, game codes, and gaming content that are compatible with major gaming consoles such as
Sony PlayStation, Microsoft Xbox, and personal computers (“PCs”). Our sales and marketing efforts are focused
on both distributing more games and improving the experience of the games we currently distribute (for example, through merchandise and
localized promotional materials). We generate revenue primarily from distribution of video games in Asia from international PC and video
game publishers and studios. We commit to a certain marketing budget to market and promote the games. For games distributed through third-party
platforms such as Steam, we are required to pay the platform providers at a pre-determined rate. These costs are expected to remain a
significant portion of our cost of revenues. In order to remain profitable, we need to generate sufficient revenue from our existing
and new game offerings to offset our ongoing development, sales and marketing and operating costs.

Since the revenue generated
from game distributions accounted for Over 86.8%, 93.3% and 87.9% of our total consolidated revenue for the fiscal years ended March
31, 2025, 2024 and 2023, respectively, the GCL Group’s success depends largely on our ability to sell commercially successful “hit”
game titles or sequels to such “hit” titles. If we experience any delays in product releases or disruptions following the
commercial release of our “hit” titles or their sequels, our operating results will be materially adversely affected. Since
our distribution agreements typically require us to commit to a minimum order quantity per game title, we may even experience a loss
if demand for the games we distribute falls short of our expectations. Although we are currently one of the biggest video game distributors
in Asia, there is no assurance that we can continue to maintain our market leading position in the game distribution industry in Asia
if we fail to meet