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Nihon Falcom, the creative minds behind the Trails series, announced on October 7 that they have updated their financial outlook for the fiscal year concluding September 2026. This upward adjustment reflects the solid performance of Trails in the Sky 2nd Chapter, which hit global shelves last month, and Kyoto Xanadu -the Blooming Phantom-, released in July.

According to GameBiz, the enduring success of last year’s Trails in the Sky 1st Chapter continues to drive strong sales worldwide. As a result, Nihon Falcom anticipates that both its revenue and earnings will surpass the initial projections.

The company has increased its projected revenue by 19.4% compared to the prior forecast ($22.7 million USD β†’ $27.1 million USD). Operating profit estimates have also risen by 27.2% ($13.9 million USD β†’ $17.6 million USD), with ordinary profit following suit at 27.2% higher ($13.9 million USD β†’ $17.6 million USD). Net profits are expected to climb by 26.6% ($9.4 million USD β†’ $12 million USD) from the previous estimate.

This marks the second significant annual financial forecast revision for the company in 2026, following a May update that showed a 38.4% rise in revenue and a 69.2% jump in operating profit compared to earlier forecasts.

Initially, Nihon Falcom took a cautious approach due to uncertainties around Kyoto Xanadu’s sales figures (a title that was omitted from the August financial report). However, the latest report indicates that Kyoto Xanadu has been steadily boosting the company’s overall earnings. Unlike the Trails remakes, this game is available only in Japan and Asia, with no global release date confirmed yet. As a fresh entry in the Xanadu series, nearly a decade after Tokyo Xanadu, its reception in Western markets once it launches internationally will be closely watched.

Further reading:

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

Kyoto Xanadu’s 2D x 3D combat gameplay is actually a homage to Falcom’s earliest Xanadu series entries, according to CEO Toshihiro Kondo

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By Sasuke

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