Company: GCL
Filing Date: 2025-08-27
Form Type: DRS
Source: 0001213900-25-080905
Chunk: 28

Company: GCL Global Holdings Ltd
Filing Date: 2025-08-27
Form: DRS
Chunk 28
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 year
ended March 31, 2025 and 2024, sales to our four biggest customers in the aggregate accounted for more than half of our total consolidated
revenue. Our sales are made primarily without long-term agreements or other commitments, and our customers may terminate their relationship
with us at any time. Certain of our customers may decline to carry products containing mature content. The loss of our relationships
with principal customers and resellers or a decline in sales to principal customers or resellers, could materially adversely affect our
business, financial condition, and operating results. In addition, if our customers or resellers are subject to pricing pressures due
to deteriorating demand for our products, competition, or otherwise, such customers or resellers may pass those pricing pressures through
to us, which could materially adversely affect our business, financial condition and operating results.

Furthermore, our customers
may also be placed into bankruptcy, become insolvent, or be liquidated due to economic downturns, global credit contractions, or other
factors. Bankruptcies or consolidations of certain large retail customers could seriously hurt our business, including as a result of
uncollectible accounts receivable from such customers and the concentration of purchasing power among large retailers.

Increased competition for limited shelf space and promotional support from retailers could affect the success of our business and require us to incur greater expenses to market our titles.

Competition is intense among
newly introduced interactive entertainment software titles for adequate shelf space and promotional support, with most and highest quality
shelf space 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.

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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