Koei Tecmo posted a turnover of EUR 531 million and a net profit of EUR 258 million, an increase of 20% compared to the previous fiscal year and a record high, mainly due to the turnover of the video game division of EUR 501.5 million, which in the current fiscal year was 501.5 million euros. Annual operating profit was EUR 246.6 million.
Japan remained Koei Tecmo’s most important market, with sales of EUR 242.6 million, ahead of the rest of Asia (EUR 169.3 million), the Americas (EUR 66.3 million) and Europe (EUR 23 million).This imbalance between East and West is simply because Koei Tecmo’s success is largely based on some very successful mobile games in Asia, especially Romance of the Three Kingdoms Ha-do and Three Kingdoms Tactics. Quite simply, iOS and Android games generated 250 million euros, while console and PC games generated 137 million euros.
As of March 31, Koei Tecmo has sold 280,000 copies of Dynasty Warriors 9 Empire and 200,000 copies of Atelier Sophie 2 on legacy machines. Among the older titles, the publisher is still highlighting the success of the Nioh series, with the two games selling over 6 million combined last September. On the other hand, Stranger in Paradise: Final Fantasy Origins has no figures available, of which Koei Tecmo is just the developer. Koei Tecmo has also developed Touken Ranbu Warriors, which has done well in Japan, and will be releasing on Steam and Switch with us on May 17th.
Koei Tecmo Results
period | turnover | operating profit | net income |
---|---|---|---|
April 2020 – March 2021 | 441 million euros | 178.2 million euros | 215.7 million euros |
April 2021 – March 2022 | 531.5 million euros | 252.2 million euros | 258.1 million euros |
For the full fiscal year, Koei Tecmo released 8.1 million games, compared to 10.1 million a year earlier. The share of game sales for downloads increased to 58% (4.68 million). On top of that, there were 128 million downloads of mobile games, compared to 99 million downloads last year, thanks to a huge increase in the Asian market.
Koei Tecmo crossed the 2,000-employee threshold this fiscal year: they now employ 2,063 people for the group, 80 more than last year. Like Bandai Namco and Capcom, those employees have been getting better returns lately. In Koei Tecmo’s case, there are rumors that starting salaries for young graduates have been raised to 290,000 yen (2,112 euros), with others generally increasing their monthly salaries by 23 percent.
A raise allows developers to outdo themselves and achieve the goals set by publishers. For the new current fiscal year, Koei Tecmo aims to generate new turnover (€560 million), but net profit fell (€230 million). “We expect both higher revenue and lower earnings due to long-term planned developments in several major games“Can we read?
The new main license is still in development
The next big cartridge, also known as Fire Emblem Warriors: Three Hopes, will debut on Switch on June 24, 2022, in line with its previous successful partnership with Nintendo. The strategy game Nobunaga’s Ambition: Rebirth is coming to PS4, Switch and Steam on July 21st.
We’ve known for a while that a big project for Koei Tecmo is the release of a new license that will exceed 5 million sales in the next two or three years. Publishers also set themselves a goal of releasing at least one game that sells more than 2 million copies a year. On mobile, Koei Tecmo aims to run a game that generates at least 2 billion yen (14.5 million euros) a month in revenue.
The group has also set itself other goals, such as improving the quality of its in-house production by beefing up its katana engine, opening an operational office in Shanghai to deepen its Chinese connections, and even making games in genres it has yet to explore, notably Battle Royale kill. Don’t sigh, we’re currently running away from NFTs.