Monolith Soft, a second party developer for Nintendo, has announced its fiscal earnings for the year ending March 2018.

The company says they earned a net profit of 138,000,000 yen (USD1.25 million) in the fiscal year ending March 2018. That’s a 60% drop from the 346,000,000 yen (USD3.15 million) they made in the fiscal year ending March 2017.

High research and development expenses for Xenoblade Chronicles 2 are speculated to have affected Monolith Soft’s profitability in the last fiscal year. In addition, Monolith Soft was in charge of a small portion of Splatoon 2, so higher expenses could have been incurred in the last fiscal year.