Koei Tecmo's fiscal 2015 report was released a couple of days back and I've completed the full write up of the report.
In the article linked below I’ll talk about Koei Tecmo’s financial performance, how each of their segments have performed, and what to expect from them in the future. I also have included a fully translated slide deck from Koei Tecmo’s earnings report.
As the report is more than 4,500 words I will request that you read the article in full using the link below.
https://zhugeex.com/2016/05/koei-tecmo-achieves-record-profit-for-6th-consecutive-year/
If you do not have time to read the full article then please see some images and extracts from the full article here-
EXTRACT-
As of March 31st 2016-
- Romance of the Three Kingdoms 13 – 180,000 units sold in Japan and Asia
- Attack on Titan – 280,000 units sold in Japan and Asia
- Dead or Alive Xtreme 3 – 190,000 units sold in Japan and Asia
- Atelier Sophie – 170,000 units sold in Japan and Asia
- La Corda d’Oro 4 – 30,000 units sold in Japan
- Dead or Alive 5: Core Fighters (F2P) – 6 Million downloads worldwide
- My GameCity (Gaming Platform) – 870,000 Members and over 35 games
Koei Tecmo continue to grow as a company in terms of both revenue and profit and there is no sign of them slowing down anytime soon. Operating Profit and margin continues to increase as Koei Tecmo focus on collaboration titles and transitioning to becoming a digital business. Koei Tecmo are also focusing on growing their social and browser games business, especially in Asia where they have been very well received. They are now looking to expand this business overseas as well as to smartphones. Koei Tecmo also announced that they were moving to a new structure this fiscal year which encompasses a 5 brand approach. I will talk about this in depth a bit later and what it means for the company overall.
To sum up, this year has been great for Koei Tecmo with all segments seeing some sort of positive whether it be increased revenue, increased profit or increased profit margin. Koei Tecmo plan for FY2016/17 to see an even larger jump in revenue and expect operating profit to grow as well. This suggests that not only will the products they release this year generate more revenue, but Koei Tecmo will continue cost cutting/utilising in house development knowledge and transitioning to digital in order to increase margins.
Koei Tecmo CEO, Yoichi Erikawa stated that fiscal 2016 has been very successful thanks to all their segments performing well. Koei Tecmo will continue their slogan of IP CREATION AND EXPANSION. Erikawa explained that Koei Tecmo’s slogan: “IP Creation and Expansion” is the creation of brand new titles for multiple platforms as well as expanding traditional franchise games to multiple platforms as well. Koei Tecmo this year are using their own development tools to adhere to multi-platform solutions and continue maximising the profitability of each current and new IP.
Koei Tecmo’s aim is to develop games for Console, Smartphone, Online browser, Online platforms such as Mobage (Japan) and even for Sony Interactive Entertainment’s new PlayStation VR and Nintendo’s new NX. Koei Tecmo released a technical demo entitled “Dynasty Warriors VR” at TGS this year and will be utilising this experience should they decide to go ahead and develop titles for the virtual reality system. So far the only confirmed title for PlayStation VR is Dead or Alive Xtreme 3 and there are no titles confirmed for NX.
Koei Tecmo reconfirm that this year is the year when they introduce new IP, introduce sequels and expansions to their current IP and, continue to collaborate with other companies on various IP. In fact the company recently set up a department that deals specifically with collaborations and as Koei Tecmo has experience in this sector they are now working on more collaborations than before. Examples given during the investor briefing were Dragon Quest Heroes II & Attack on Titan for PlayStation systems, Yokai x Romance of the Three Kingdoms for Nintendo systems & Dissidia Final Fantasy for arcade systems. Koei Tecmo also said that they have made a collaboration deal with a very big Western IP and look forward to bringing us news on this large scale collaboration in the future.
This year we look forward to Nioh which represents Koei Tecmo’s global strategy to simultaneously launch a new IP worldwide. Koei Tecmo are working to ensure that the game meets the requirements of global users and even launched an Alpha demo (Ongoing) in order to receive feedback on the game. This game is being developed by Team Ninja and will release exclusively on PlayStation 4 in 2016. Toukiden 2 is also part of Koei Tecmo’s IP expansion and multiplatform strategy with the game taking on a new open world genre and being released across many platforms in order to expand sales. This game is also due to launch in Japan during 2016. In terms of collaboration titles, Yokai x Romance of the Three Kingdoms has been more successful than Pokemon Conquest and has sold in more than 500,000 units in Japan to date.
