Despite weaker game sales, Koei Tecmo still expect a boost in earnings thanks to skilled investments 

Koei Tecmo published a revision of its consolidated earnings forecast on October 21. These revisions show that, once again, the company has made successful investments to prop up their game business. Despite a dip in sales revenue, projected operating profit was revised upwards by 7 billion yen for the period from April 1 to September 30, 2024 (source: Game Watch).  

In the latest report, Koei Tecmo revised net sales downwards by 7.9% to 35 billion, while projected operating profit was raised from 13 billion yen to 20 billion yen. 

Although purchases of past physical releases and mobile game profits exceeded expectations, Koei Tecmo hasn’t had many new releases during this period, hence why sales were revised downwards with operational costs reduced. The overall consolidated forecast for the full year remains unchanged, with Koei Tecmo taking into account both the new games it has lined up for release (like Dynasty Warriors Origins) and overall global economic and market trends. 

Koei Tecmo is well known for boosting its profits and making up for any shortfalls in sales by through skillful stock investments, as it did last year too. As reported in Nikkei in August 2024, Koei Tecmo’s net income increased by 29% thanks to earnings related to asset management, which amounted to over 1 trillion yen. This is thanks to Koei Tecmo’s Chairwoman and Representative Director Keiko Erikawa. who heads the company’s asset management (and has also set up a fund to support children from single mother households).