Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 26

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 26
---
 the cadence of 
 introductions without incurring excessive costs;                                                        |

| ● | achieve and maintain successful customer engagement and effectively monetize our games; |

| ● | maintain an engaging gaming experience and retain our gamers; |

| ● | compete successfully against a large and growing number of existing market participants; |

| ● | accurately forecast the timing and expense of our operations, including original content development, 
 marketing and customer acquisition, customer adoption and revenue growth; and                         |

| ● | minimize and quickly identify bugs or outages as a game publisher. |

These and other uncertainties
make it difficult to know whether we will succeed in continuing to distribute or publish successful games, and launch new games and features
in accordance with our operating plan. If we do not succeed in doing so, our business, financial condition, results of operations or reputation
will suffer.

Our ability to acquire and maintain licenses to intellectual property through distribution agreements with game publishers may affect our revenue and profitability.

Our video game distribution
business depends on the distribution agreements we enter into with publishers giving us the licenses or rights to third-party intellectual
property for use in the games we distribute or platform to enhance the experience of our gamers. Pursuant to these distribution agreements,
the publishers retain all the intellectual properties rights related to the games, and the licenses granted typically limit our use of
the intellectual properties to specific uses and for specific time periods, and include other contractual obligations, including the achievement
of certain minimum order quantities in order for the license to remain in effect. In many cases, certain intellectual property rights
may be licensed to us on a non-exclusive basis, and accordingly, the owners of such intellectual property are free to license such rights
to third parties, including our competitors, on terms that may be superior to those offered to us, which could place us at a competitive
disadvantage. Competition for these licenses is intense. If we are unable to obtain and remain in compliance with the terms of these licenses
or obtain additional licenses on reasonable economic terms, our revenue and profitability may be adversely impacted.

The increasing importance of digital content delivery exposes us to the risks of that business model, including greater competition from online and mobile games.

The increased importance of
digital content delivery in our industry, including through subscription-based access to a portfolio of interactive content, increases
our potential competition, as the minimum capital needed to produce and publish a digitally delivered game is significantly less than
that needed to produce and publish one that is delivered through retail distribution. A continuing shift to digital