Company: GCL
Filing Date: 2025-04-03
Form Type: F-1
Source: 0001213900-25-028608
Chunk: 27

Company: GCL Global Holdings Ltd
Filing Date: 2025-04-03
Form: F-1
Chunk 27
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 content delivery could
result in a deprioritization of our games by retailers. This shift also requires us to dedicate capital to developing and implementing
alternative marketing strategies which may or may not successful. If we are unable to effectively market and distribute our games, our
business and operating results will be materially adversely affected.

We rely on our sales channel partners some of whom influence the fee structures for online distribution of our games on their platforms.

We rely on our sales channel
partners, some of whom have retained the right to change the fee structures for online distribution of both paid content and free content
(including patches and corrections) that we license to them for distribution on their platforms. Such channel partners’ ability
to set or influence royalty rates may increase costs, which could negatively affect our operating margins. We may be unable to distribute
our content in a cost-effective or profitable manner through such distribution channel, which could adversely affect our business, financial
condition and operating results.

<div align='center'>10</div>

Outside of fee arrangements,
our agreements with our channel partners sometimes give them significant control over other aspects of the distribution of our products
and services that we develop for their platform. If our channel partners establish terms that restrict our offerings through their channels,
or significantly affect the financial terms on which these products or services are offered to our customers, we may be unable to distribute
our product offerings through them or be forced to do so on materially worse financial or business terms in negotiating such various aspects
of distribution. Increased competition for digital “shelf space” has put channel partners in more favorable bargaining positions
in relation to such terms of distribution.

We rely on third-party retailers to distribute our games and collect revenues generated on their websites or other e-commerce websites and third-party platforms.

Approximately 96.4% and 93.3%
of our annual revenue for the six months ended September 30, 2024 and fiscal year ended March 31, 2024, respectively, was generated from
game distributions. If we are unable to maintain a good relationship with such platform providers, if their terms and conditions or pricing
change to our detriment, if we violate, or if a platform provider believes that we have violated, the terms and conditions of its platform,
or if any of these platforms loses market share or falls out of favor, or is unavailable for a prolonged period of time, our business
will suffer.

We are subject to the standard
and non-negotiated policies and terms of service/publisher agreements of third