Koei Tecmo announced on April 20 that it has revised its consolidated earnings forecast for the fiscal year ended March 2026. While the company previously expected to see increased revenue but decreased profit year-on-year, the new revision projects significantly increased revenue and profit; with net sales, ordinary profit, and net profit margins expected to reach record highs, according to GameBiz.
Koei Tecmo cites two reasons for the revision, one being the stronger-than-expected performance of games released in the last quarter, and the other being “non-operating income significantly exceeding projections.” The latter refers to money the company makes from activities unrelated to its core game business, like investment returns.
Titles released by Koei Tecmo in the past quarter include Nioh 3 and Fatal Frame II: Crimson Butterfly Remake, both of which launched to “Very Positive” ratings on Steam, with the former selling over 1 million units across all platforms. Most notably, Koei Tecmo was the developer of The Pokémon Company’s hit life simulator Pokémon Pokopia, which released on March 5 and sold over 2.2 million units within four days.
Still, while Koei Tecmo’s updated financial forecast accounts for an impressive 16.1% increase in operating profit thanks to strong game sales, the update to ordinary profit is a mind-boggling 50% increase. This is not a first for Koei Tecmo, as the company is known to function as an institutional investor, managing a large amount of capital through stocks and other financial assets in parallel with its game business. However, it’s interesting to note that, despite the release of numerous hit titles, the developer generated even greater profits through these investment activities.
