KLab is running an AI VTuber agency, Yumekairo Production, that is adding human talent alongside its AI act, and it is producing an AI anime film for 2027. The company reported an operating profit in the second quarter on the strength of Dragon Quest Smash Grow.
KLab's recent coverage splits between its AI VTuber agency and its games business. In June 2026, KLab announced production of an AI anime film adaptation of Miho Sakurai's novel, with a teaser shown at the AI Film Awards in Cannes and a 2027 release planned through the KLab AI GUILD creator project. The same month, the Ministry of Economy, Trade and Industry selected Yumekairo Production for its IP360 development platform support, covering dialogue control, voice generation, and 3D live production. On the games side, KLab reported second-quarter net sales of 3.263 billion yen, up 91.3% quarter-on-quarter, and operating income of 493 million yen, reversing a first-quarter operating loss of 453 million yen, with Dragon Quest Smash Grow cited as the driver. The first half still showed a net loss of 125 million yen. In July, KLab disclosed that sales through Xsolla had become its third-largest sales channel, after Apple and Google.
Through August and September, Yumekairo Production expanded its AI VTuber operation. It held Yumekairo Summer Party 2026 from August 1 to August 31. Yumeminana, an AI VTuber whose voice, expressions, and speech are AI-generated, released her third original song MV, which passed one million views and ranked 36th on YouTube's weekly Top 100 Music Videos Japan chart. All three of her original songs have passed one million views. On September 12 and 13, the agency held Yumekairo Talk Fest, letting fans hold one-on-one conversations with Yumeminana, Tsukimado Romi, Koguma Komame, and Hanazaki Mimoza.
In October 2026, KLab announced the debut of Mizusumi Mahoro, a first-generation VTuber at Yumekairo Production, with her first stream set for Saturday, October 24, 2026. The agency also houses the AI VTuber Yumenanana. The company has also appeared in coverage of a new AI video creator magazine from Asuka Publishing. KLab's outside work includes contract game development through Junklab, an Australian indie studio building the sailing simulation RED SKIES AT DAWN for PC via Steam with an undecided release date.
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KLab announced that Mizusumi Mahoro, a first-generation VTuber at its agency Yumekairo Production, will hold her first stream on Saturday, October 24, 2026. The official YouTube channel is open and a teaser video is scheduled for Saturday, 10/10 at 12:00. Her profile describes a painter's heir streaming in secret, and the agency also houses AI VTuber Yumenanana.
Australian indie studio Junklab opened the Steam store page for RED SKIES AT DAWN on September 20, 2026. The game is a first-person sailing simulation in which the player operates a sloop, a small sailboat with triangular fore-and-aft sails, across open ocean. Players read weather through a weather map, on-board instruments, and a radio, then work the rudder and sails to reach a destination, with no fuel-based propulsion and movement instead drawn from wind and ocean currents. The store page states the project is still in development and outlines the full version: studying weather charts tied to a dynamic weather system, choosing a route, and deciding whether to push on or turn back as voyage difficulty rises. Screenshots and footage show calm sailing with dolphins following the boat, and storm sequences with heavy rain, lightning, high waves, a torn sail, and a breaking mast. The release date is undecided, the platform is PC via Steam, and the store page listing does not currently support Japanese.
Asuka Publishing will release AI Doga Saizensen, a magazine for AI video creators, at bookstores nationwide on October 6, 2026. Supervised by AICU Japan head Akihiko Shirai, it carries exclusive interviews with 12 key figures and companies, including KLab, which announced the AI anime film The Celebrity Secret, and director Kumiko Endo, whose all-AI feature Matilda: Devil's Gene drew international attention. The 96-page issue covers production methods, costs, and copyright guidance from lawyer Kengo Yabuki.
KLab announced that Yumeminana's third original song MV, 'Tirarila Star Tune,' ranked 36th on YouTube's weekly Top 100 Music Videos Japan chart. The song debuted at her first online 3D live on July 7, the MV followed on August 6, and it passed one million views on August 26. All three of her original songs have now crossed one million views. Yumeminana is an AI VTuber whose voice, expressions, and speech are AI-generated.
KLab will hold Yumekairo Talk Fest, an online event where fans can have one-on-one conversations with four talents from its AI VTuber agency Yumekairo Production. The event runs September 12 and 13, 2026, with Yumeminana, Tsukimado Romi, Koguma Komame, and Hanazaki Mimoza each holding a one-hour slot. Applications open September 5 at 12:00 on the Raidori platform.
KLab announced that the music video for 'Tirarira☆Star Tune,' the third original song by AI VTuber Yumeminana, surpassed 1 million cumulative views on YouTube. The MV was released on August 6, and reached the milestone by August 26. This marks the third consecutive original song from Yumeminana to exceed 1 million views, following her debut song 'Nanano Hoshinona' and the second song 'Nana no Big Bang Self-Introduction.' All three original song MVs released in 2026 have now passed the 1 million view mark. Yumeminana is a first-generation member of Yumekairo Production, a VTuber agency operated by KLab. Her voice, facial expressions, and speech are generated by AI, with live streams using real-time response technology that analyzes viewer comments and generates responses on the spot, all under human design and control. Since her debut on February 15, 2026, she has expanded from chat and singing streams to collaborations, game playthroughs, food reviews, movie watch-alongs, and ASMR streams. In July 2026, she held her first online 3D live, 'Yumeminana Seitansai 2026,' where 'Tirarira☆Star Tune' was first performed.
KLab announced that AI VTuber Yumeminana will premiere the music video for her third original song, Tirarila Star Tune, on YouTube at 21:00 on August 6, 2026. The song will also begin distribution on major platforms including Apple Music and Spotify. The MV features the dance performance from her July 7 live show.
KLab's AI VTuber agency Yumekairo Production will hold its first company-hosted event, Yumekairo Summer Party 2026, from August 1 to August 31. The month includes weekly streams, event goods, and new music content. Full details arrive August 1 at 8 p.m. on the official YouTube channel.
KLab reported second-quarter net sales of 3.263 billion yen, up 91.3% quarter-on-quarter, and operating income of 493 million yen, reversing a first-quarter operating loss of 453 million yen. The launch of Dragon Quest Smash Grow, developed by KLab and published by Square Enix, drove the recovery. The first half still posted a net loss of 125 million yen.
KLab revealed that sales via external payment platform Xsolla have grown to become the company's third-largest sales channel, after Apple and Google. The disclosure came during a June 4 seminar on external payments hosted by GameBusiness.jp, where KLab's Shuichiro Nishioka detailed three years of trial and error. The new Japanese Smartphone Software Competition Promotion Act is driving the shift toward external payment adoption across the industry.
At GAME FUTURE SUMMIT 2026, KLab and Next Ninja shared practical strategies for overseas expansion and AI utilization. KLab's Toshi Fujiyoshi detailed how Captain Tsubasa: Dream Team achieved high sales in Asia, Europe, and the Middle East through simultaneous global release, Discord community management, and offline world tournaments. Next Ninja's Seiko Yamagishi emphasized direct fan engagement. The panel also revealed that AI has automated 86% of customer support work, cutting response time from five days to five minutes.
KLab's VTuber agency Yumekairo Production has been chosen for the Ministry of Economy, Trade and Industry's IP360 development platform construction support. The project aims to build technology infrastructure for AI VTuber production, distribution, and operation, including dialogue control, voice generation, and 3D live production, with future external provision planned.
KLab announced the production of an AI anime film adaptation of Miho Sakurai's best-selling novel 'Why Are Celebrities' Bags So Small? The Secret Rules of Money and Happiness.' The teaser video was highly rated at the AI Film Awards in Cannes. The film is scheduled for a 2027 release and will be produced in collaboration with the KLab AI GUILD creator co-creation project.