Koei Tecmo makes up for losses in video game sales with skillful stock investments 

Koei Tecmo published a revision of their consolidated earnings forecast for fiscal year 2023 (April 1, 2023 – March 31, 2024). The revision, disclosed on April 15, accounts for video game titles released within FY 2023 falling short of original targets, but also for a large, unforeseen growth in Koei Tecmo’s non-operating income. The report has sparked praise towards Koei Tecmo’s Chairwoman and Representative Director Keiko Erikawa, who is known for her prowess as an investor. 

According to the report, Koei Tecmo’s operating income (i.e. income from their core business operations – video games) decreased by 10.5 billion yen. During FY 2023, the company released Atelier Marie Remake: The Alchemist of Salburg, Atelier Resleriana: Forgotten Alchemy and the Polar Night Liberator, Fate/Samurai Remnant, Wo Long and Rise of the Ronin. It seems these titles did not perform as well as initially forecast, resulting in the downward revision. 

On the other hand, profits related to non-operating income increased by 3.5 billion yen. Non-operating income refers to gains or losses from sources not related to the core activities of the company, such as investments, property or asset sales, etc. Koei Tecmo are generally known for their asset management having a major influence on business performance – in FY 2021, investment profits accounted for 38% of the company’s cumulative profits. 

Koei Tecmo’s excellent asset management is headed by Keiko Erikawa, co-founder of Koei Tecmo and wife of CEO Yoichi Erikawa. She is responsible for managing the company’s cash on hand (up to 120 billion yen in funds, according to a report from 2021) and she invests large sums in stocks and structured bonds domestically and overseas (The Nikkei). Due to her vital role in sustaining the company financially and her involvement in game development (she is considered the parent of the otome game genre), she is often nicknamed “Empress” in online circles, and the recent report by Koei Tecmo has once again reignited admiration towards her. 

At the same time, the news has made a lot of users poke fun at Koei Tecmo for being “an investment company that makes games as a hobby,” and people are hoping that the company will be able to come out with more popular titles in the future. Koei Tecmo’s latest big release, Rise of the Ronin, launched to mixed impression overseas, but appears to be achieving solid sales and reviews in Japan.