Koei Tecmo reports highest sales since 2009 thanks to mobile games, but intends to focus on console titles
Koei Tecmo Holdings recently announced their consolidated financial results for the 2023 fiscal year ending on March 30, 2024. As detailed by gamebiz.jp, Koei Tecmo reported their highest sales since Koei and Tecmo merged in 2009. However, this was mostly thanks to smartphone games, with console/PC games sales declining due to fewer new titles being released. Despite this, it seems that Koei Tecmo is focusing more on the long-term profitability of their console titles.
In their financial results presentation dated April 30 2024, Koei Tecmo reports that they achieved their highest ever online and mobile sales. In Japan, Nobunaga’s Ambition: Hadou and Nobunaga’s Ambition: Shutsujin apparently performed well, with a 1st anniversary being held for Hadou. Shutsujin is a GPS based title that is strongly connected to historical sites in Japan, with local tie-in events held throughout the country last year to help the title serve as an “entry point for both the IP and brand.”
On the other hand, console games didn’t do as well as the company had hoped, with new titles failing to reach their sales goals. Unit sales for console games fell in all regions due to fewer new titles but this decline was particularly noticeable in North America and Asia. Sales in Asia fell by 39.2% to 13.8 million units, while sales in North America fell by 23.5% to 2.18 million units. Japan sales were down by 18.0% to 2.42 million units and by 13.4% to 1.36 million units in Europe (Source: gamebiz.jp /Koei Tecmo).
However, regarding Rise of the Ronin, Koei Tecmo’s new IP release of 2023, the company reports that the game’s starting sales outpaced the two Nioh entries and has been well received by players (citing the game’s favorable Metacritic and user scores). Rise of the Ronin is apparently part of Koei Tecmo’s mid-to-long term plan, with the company citing that their first AAA-class open world game has raised their level in terms of development, technology and management.
As for other console releases, multiplatform title Fate/Samurai Remnant sold 410,000 units globally and Wo Long: Fallen Dynasty Complete Edition reached 5 million concurrent players at launch (including Xbox Game Pass users).
Regarding their plans for FY2024, Koei Tecmo is focusing on bolstering their monthly revenue for mobile titles launched in 2023. As for console games, they are hoping for continued sales of titles released in 2022 and 2023, as well as their new games due to launch in 2024. Koei Tecmo will release the Romance of the Three Kingdoms 8 Remake on multiple platforms in 2024, and also report that they have “multiple new titles under development.” The company also established AAA Studio, which will “consistently launch major titles in the future.”
Advertising and outsourcing costs increased in 2023 due to Koei Tecmo’s large scale promotions and events for mobile titles, and for launching new IPs. However, these costs are predicted to be lower in 2024. Koei Tecmo has been decreasing its operating costs year-on-year due to development costs being shouldered by collaborative partners. Koei Tecmo has also reported profits across their non-gaming sectors this year, including their real estate business, KT ZEPP Yokohama concert venue and amusement facilities (e.g. pachinko). We previously reported on how the company invests skillfully in stocks to make up for shortfalls in video game sales.
Koei Tecmo’s full presentation on their financial results for FY2023 can be found in English here.
