Company: GCL
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001213900-25-069672
Chunk: 2

Company: GCL Global Holdings Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 2
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 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 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 fees 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.

Outside of fee arrangements,
our agreements with our channel partners sometimes give them significant