Nihon Falcom sees 670% profit growth following Trails in the Sky 1st Chapter, but remains conservative for full year due to difficulty of predicting Kyoto Xanadu sales figures

In the first quarter of the fiscal year, Nihon Falcom saw large-scale growth in both revenue and profit, attributed largely to Trails in the Sky 1st Chapter.

Nihon Falcom has published its financial results for the first quarter of the fiscal year (October to December 2025). As reported by GameBiz, the developer saw large-scale year-on-year growth in both revenue and profit, attributed largely to the successful release of Trails in the Sky 1st Chapter back in September.  

Revenue was up 150.7%, while operating profit went up 670.4% compared to the previous year. Against the success, Nihon Falcom currently has seven titles in development, including Trails in the Sky 2nd Chapter – a sequel to the remake series, and the recently unveiled Kyoto Xanadu. 

Kyoto Xanadu

Nihon Falcom also reported significant success in its licensing business in the past quarter (up 218.3% year-on-year), owed to the international versions of several Trails and Ys series entries. Going forward, the company will release the global versions of Ys X: Proud Nordics (February 20, 2026), and Ys Memoire: Revelations in Celceta (April 2026). 

Despite the impressive growth figures, Nihon Falcom is staying conservative with its forecast for the full fiscal year. The company has not announced any revisions yet, citing that it’s currently difficult to predict sales figures for Kyoto Xanadu, which will release in the second half of the fiscal year. It seems the developer doesn’t yet have a clear image of how the title will perform. 

Related: Tokyo Xanadu was always supposed to get a sequel, but Nihon Falcom was too busy developing Trails, says president Toshihiro Kondo

Trails in the Sky 1st Chapter saw the biggest response on Steam, Nihon Falcom CEO says. “The Steam demo’s impact was enormous” 

Amber V
Amber V

Editor-in-Chief since October 2023.

She grew up playing Duke Nukem and Wolfenstein with her dad, and is now enamored with obscure Japanese video games and internet culture. Currently devoted to growing Automaton West to the size of its Japanese sister-site, while making sure to keep news concise and developer stories deep and stimulating.

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