Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 25

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 25
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 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 approximately 96.4% and 93.3% of our total consolidated revenue for the six months ended September
30, 2024, and fiscal year ended March 31, 2024, 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 these minimum purchase commitments in our distribution agreements with game
publishers. Our brand will also suffer if we fail to continue to distribute and publish consistently high quality and well-received game
products and services, and as a result, our revenue and profitability may decline.

The success of our games 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. If the games we distribute do not meet consumer expectations, or if new
games are not brought to market by us in a timely and effective manner, our ability to grow revenue and our financial performance will
be adversely affected.

Our ability to successfully
distribute and sell games to resellers and their ability to achieve commercial success will depend on our ability to:

| ● | effectively market the games to existing and new gamers; |

| ● | adapt to changing gamers’ preferences and spending habits; |

| ● | attract, retain and motivate talented and experienced game designers, product managers and engineers; |

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| ● | efficiently manage the distribution and publishing of new games and features to increase