Koei Tecmo revealed on April 20 that it has adjusted its consolidated earnings forecast for the fiscal year ending March 2026. Initially, the company anticipated higher revenue but lower profit compared to the previous year, but the updated forecast now predicts substantially higher revenue and profit. According to GameBiz, net sales, ordinary profit, and net profit margins are all expected to hit record highs.
The revision is attributed to two key factors: the unexpectedly strong performance of games released in the last quarter, and “non-operating income significantly exceeding projections.” The latter refers to income generated from activities outside Koei Tecmo’s core gaming operations, such as investment returns.
Games launched by Koei Tecmo in the recent quarter include Nioh 3 and Fatal Frame II: Crimson Butterfly Remake, both of which received “Very Positive” ratings on Steam. Nioh 3 has sold over 1 million units across all platforms. Additionally, Koei Tecmo developed The Pokémon Company’s popular life simulator Pokémon Pokopia, which launched on March 5 and sold over 2.2 million copies within four days.
While Koei Tecmo’s revised financial outlook shows a remarkable 16.1% increase in operating profit due to strong game sales, the boost to ordinary profit is even more striking at 50%. This isn’t the first time Koei Tecmo has seen such results, as the company is known for its role as an institutional investor, managing substantial capital through stocks and financial assets alongside its gaming operations. Notably, despite releasing multiple hit titles, the developer’s investment activities generated even greater profits.