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Nihon Falcom FY 2021 Results (Falcom Now Developing for Switch In-House)

Aquamarine

Aquamarine

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I thought this deserved its own thread, instead of being buried in the Media Create thread. Done very quickly.

My translations are in Red

Earnings Release

Supplementary Information

gWPHUWX.png



Quarterly Sales Comparison (Thanks @Chris1964):

Qceux4n.png


Converted to USD:

tew7PEV.png


Although they have a new Kiseki game planned for release and a bunch of Clouded Leopard ports, Falcom is forecasting a year-over-year drop in both revenue and profit through September 2022 because of the sales weakness of Kuro no Kiseki and the lack of new NIS America releases by next September:

ymIEiBL.png


Falcom Revenue by Region (Figures in Thousand JPY):

Previous Fiscal Year (October 1, 2019 - September 30, 2020):
Japan: 2,021,143 (81%)
Asia: 100,881 (4%)
North America + Europe: 374,561 (15%)
Total: 2,496,586

Current Fiscal Year (October 1, 2020 - September 30, 2021):
Japan: 1,415,595 (57%)
Asia: 387,510 (16%)
North America + Europe: 674,848 (27%)
Total: 2,477,954

Japan is rapidly declining as Falcom's core userbase. 43% of Falcom's revenue now stems from OUTSIDE Japan. I think Falcom will continue on this trajectory moving forward, making steps to further prioritize the worldwide market.


Falcom Revenue by Type (Figures in Thousand JPY):

Previous Fiscal Year (October 1, 2019 - September 30, 2020):
Product Division: 1,041,417 (42%)
Licensing: 1,455,169 (58%)
Total: 2,496,586

Current Fiscal Year (October 1, 2020 - September 30, 2021):
Product Division: 667,701 (27%)
Licensing: 1,810,252 (73%)
Total: 2,477,954

Falcom's revenue from licensing out their products also jumped dramatically this fiscal year. This includes the partnerships with Clouded Leopard Entertainment & NIS America, along with the Kiseki Anime and the smartphone contract they have.


Falcom Major Partnership Revenue (Figures in Thousand JPY):

Previous Fiscal Year (October 1, 2019 - September 30, 2020):
Konami Digital Entertainment: 866,742 (34.7%)
NIS America: 220,138 (8.8%)
Clouded Leopard Entertainment: 320,036 (12.8%)

Current Fiscal Year (October 1, 2020 - September 30, 2021):
Konami Digital Entertainment: 553,936 (22.4%)
NIS America: 471,370 (19.0%)
Clouded Leopard Entertainment: 311,305 (12.6%)

You can see how much NIS America jumped in importance for Falcom this fiscal year. Clouded Leopard remained static YOY.


Strategic Changes & Tidbits:




"「軌跡」シリーズ最新作を発売、「軌跡」シリーズは累計販売本数600万"
Released the latest work of the "Trails" series, and the Cumulative sales of the "Trails" series is 6 million.

"Nintendo Switch向けゲームソフトについて、2022年より国内で自社展開も進める"
Regarding game software for Nintendo Switch, we will promote in-house development in Japan from 2022

Nayuta will be their first in-house developed title:

H88H9oX.png


It also appears that Falcom plans to release the four missing Trails games in the West after September 30, 2022:

OI593R0.png


We only had "Fall 2022" for Trails from Zero before, so now it's likely we may see it in October or November.
 
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Aquamarine said:
I thought this deserved its own thread, instead of being buried in the Media Create thread. Done very quickly.

Earnings Release

Presentation:

gWPHUWX.png


My translations in Red


Falcom Revenue by Region (Figures in Thousand JPY):

Previous Fiscal Year (October 1, 2019 - September 30, 2020):
Japan: 2,021,143 (81%)
Asia: 100,881 (4%)
North America + Europe: 374,561 (15%)
Total: 2,496,586

Current Fiscal Year (October 1, 2020 - September 30, 2021):
Japan: 1,415,595 (57%)
Asia: 387,510 (16%)
North America + Europe: 674,848 (27%)
Total: 2,477,954

Japan is rapidly declining as Falcom's core userbase. 43% of Falcom's revenue now stems from OUTSIDE Japan. I think Falcom will continue on this trajectory moving forward, making steps to further prioritize the worldwide market.


Strategic Changes Falcom is making:




Other Interesting Tidbits:

「軌跡」シリーズ最新作を発売、「軌跡」シリーズは累計販売本数600万
Released the latest work of the "Trails series," and the Cumulative sales of the "Trails" series is 6 million.


Nintendo Switch向けゲームソフトについて、2022年より国内で自社展開も進める
Regarding game software for Nintendo Switch, we will promote in-house development in Japan from 2022
Click to expand...

Are there numbers for this specific quarter compared to the same quarter last year? (revenue, income)
 
Falcom Revenue by Type (Figures in Thousand JPY):

Previous Fiscal Year (October 1, 2019 - September 30, 2020):
Product Division: 1,041,417 (42%)
Licensing: 1,455,169 (58%)
Total: 2,496,586

Current Fiscal Year (October 1, 2020 - September 30, 2021):
Product Division: 667,701 (27%)
Licensing: 1,810,252 (73%)
Total: 2,477,954

Falcom's revenue from licensing out their products also jumped dramatically this fiscal year. This includes the partnerships with Clouded Leopard Entertainment & NIS America, along with the Kiseki Anime and the smartphone contract they have.
 
Falcom Major Partnership Revenue (Figures in Thousand JPY):

Previous Fiscal Year (October 1, 2019 - September 30, 2020):
Konami Digital Entertainment: 866,742 (34.7%)
NIS America: 220,138 (8.8%)
Clouded Leopard Entertainment: 320,036 (12.8%)

Current Fiscal Year (October 1, 2020 - September 30, 2021):
Konami Digital Entertainment: 553,936 (22.4%)
NIS America: 471,370 (19.0%)
Clouded Leopard Entertainment: 311,305 (12.6%)

You can see how much NIS America jumped in importance for Falcom this fiscal year. Clouded Leopard remained static YOY.
 
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Aquamarine said:
Falcom Major Partnership Revenue (Figures in Thousand JPY):

Previous Fiscal Year (October 1, 2019 - September 30, 2020):
Konami Digital Entertainment: 866,742 (34.7%)
NIS America: 220,138 (8.8%)
Clouded Leopard Entertainment: 320,036 (12.8%)

Current Fiscal Year (October 1, 2020 - September 30, 2021):
Konami Digital Entertainment: 553,936 (22.4%)
NIS America: 471,370 (19.0%)
Clouded Leopard Entertainment: 311,305 (12.6%)

You can see how much NIS America jumped in importance for Falcom this fiscal year. Clouded Leopard remained static YOY.
Click to expand...
Shows how much the current Fiscal Year is a challenge for them with NISA's output being reduced/on the weak side.
 
Although they have a new Kiseki game planned for release and a bunch of Clouded Leopard ports, Falcom is forecasting a year-over-year drop in both revenue and profit through September 2022 because of the sales weakness of Kuro no Kiseki and the lack of new NIS America releases by next September:

ymIEiBL.png
 
Isn't it too late to start develop on switch now? They risk to release a in house game for switch when there is already a switch 2. If I remember correctly, they already did something similar when they went on older playstation system while the new one was just coming out.
I'm glad their games are getting more western sales.
 
River said:
Isn't it too late to start develop on switch now? They risk to release a in house game for switch when there is already a switch 2. If I remember correctly, they already did something similar when they went on older playstation system while the new one was just coming out.
I'm glad their games are getting more western sales.
Click to expand...
Since they are still making PS4 games until 2023, adding the Switch now isn't weird.

Furthermore, it is all about ecosystems now and making their older games available through Switch (and most likely Switch 2) will benefit them for years (catalogue sales + establishinh the audience).
 
Nayuta will be their first in-house developed title:

H88H9oX.png
 
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It also appears that Falcom plans to release the four missing Trails games in the West after September 30, 2022:

OI593R0.png


We only had "Fall 2022" for Trails from Zero before, so now it's likely we may see it in October or November.
 
If their western/NISA sales are up isn't that likely (partially) because of their Switch versions as well?

No wonder they're feeling the pressure.
 
Good to see they finally ended their "resistance" and are now all in with Nintendo, took some years but at least it's happening.
 
VengefulMagus said:
I'd wait and see what they do beyond Nayuta before saying that much. It's another baby step in the right direction.
Click to expand...
What happened with Switch and Falcom games outside Japan will happen inside Japan too. There have been big changes last years between Nintendo and Falcom last years, this isn't a baby step.
 
Damn, and i already wondered why it was so cold today. Of course it is, hell froze over! ;D

Here's hoping this ends up with a better revenue for them in the future.
 
Had to happen eventually, their previous strategy was not working and sales showed it.
So yes, let's hope it'll get better moving forward.
 
Aostia82 said:
so Nayuta is coming out before Sept 22?
Click to expand...
Falcom is developing a native port of Nayuta for Switch which will be out in Japan by September 2022. The English localization for Steam and Switch is still planned for 2023.
 
Aquamarine said:
Falcom is developing a native port of Nayuta for Switch which will be out in Japan by September 2022. The English localization for Steam and Switch is still planned for 2023.
Click to expand...
The Japanese version comes out on Steam December 11th (from NISA), so I wonder what's the hold up there.
 
Hell froze over and the alliance lost a member 🤭🤭🤭
Seriously now, that's a important step from Falcom. They should have beens developing their multiplatform skills since a long time ago, but better late than never. Now they need to create and engage Nintendo audience to find another revenue stream and recoup some of the handheld players they lost in the Vita -> PS4 transition. Regardless, it's an important move from them.
 
Very nice to see them transition to Switch/PS5 cross-development, it was definitely starting to become necessary what with the latest sales performances.

Lelouch0612 said:
That's a natural conclusion. Simultaneous release between PS/Nintendo is the expected now.
Click to expand...
Indeed. Nice to see that, can't wait to see it happen (and how much of the market Switch canncome to represent). Also, I don't have to wait a year for a Switch version, which is a nice bonus lol
 
Zedark said:
Very nice to see them transition to Switch/PS5 cross-development, it was definitely starting to become necessary what with the latest sales performances.


Indeed. Nice to see that, can't wait to see it happen (and how much of the market Switch canncome to represent). Also, I don't have to wait a year for a Switch version, which is a nice bonus lol
Click to expand...

They never said anything about PS5. =P

I doubt we'll see day-and-date release straight off the bat. The turnaround time is probably too difficult for them, Kuro just released and they have another Kiseki lined up for next year.
 
Oregano said:
They never said anything about PS5. =P

I doubt we'll see day-and-date release straight off the bat. The turnaround time is probably too difficult for them, Kuro just released and they have another Kiseki lined up for next year.
Click to expand...
Fair enough, was thinking more in the medium term (3-4 years ahead). By then they might have shifted from PS4.

We'll see, hopefully they have been planning this for longer they have publicly communicated. But yeah, it's definitely possible that they might not get day-and-date cross-platform releases. But they will need to get there, since they have already seen that releasing a late port doesn't do very much for their games.
 
Chris1964 said:
What happened with Switch and Falcom games outside Japan will happen inside Japan too. There have been big changes last years between Nintendo and Falcom last years, this isn't a baby step.
Click to expand...
Didn’t Nintendo have a free trial for Ys IX on NSO? That was probably a part of it.
 
It makes a lot of sense for them, as it would've been quite odd to transition solely to PS5 in-house and not also target the lead domestic console.
 
Nintendo Switch向けゲームソフトについて、2022年より国内で自社展 開も進める
Click to expand...
The 展開 wording is really interesting here.
Very curious if the Nayuta port will be actually developed in-house or just self-published (which would also be a first for Falcom on Switch), with Artdink doing the actual development.
If it's internally developed, it would be a good parallel with how Falcom transitioned from PC to PS: A few in-house developed ports in 2006~2008, before the Zwei 2 bomba happened and convinced them to fully give up on PC.
 
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It's been awhile...

  • 1987: Dragon Slayer IV: Drasle Family (FC)
  • 1994: Popful Mail (SFC)
  • 1995: Ys V: Ushinawareta Suna no Miyako Kefin (SFC)
  • 1996: Ys V Expert (SFC)
  • 2022: Nayuta no Kiseki (NSW)
 
nayu said:
The 展開 wording is really interesting here.
Very curious if the Nayuta port will be actually developed in-house or just self-published (which would also be a first for Falcom on Switch), with Artdink doing the actual development.
If it's internally developed, it would be a good parallel with how Falcom transitioned from PC to PS: A few in-house developed ports in 2006~2008, before the Zwei 2 bomba happened and convinced them to fully give up on PC.
Click to expand...
maybe it's a case of Falcom commissioning a port personally, instead of letting licensees do it
 
Very interesting news to wake up to.

The line about them prioritizing the worldwide market made me think they might ignore the Switch completely and focus on the worldwide market in the PS/XBX/PC universe, but then they go and announce an in-house Switch title.

We thinking the in-house Switch game will be exclusive or multi-platform?

But I wouldn't worry about the release timing of the game. I'm assuming the OG Switch will co-exist with the "Switch 2" for a few years with it being able to play the lesser demanding titles. Falcom will be able to sell the title to both OG and Switch 2 owners.
 
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Nenned said:
We thinking the in-house Switch game will be exclusive or multi-platform?

But I wouldn't worry about the release timing of the game. I'm assuming the OG Switch will co-exist with the "Switch 2" for a few years with it being able to play the lesser demanding titles. Falcom will be able to sell the title to both OG and Switch 2 owners.
Click to expand...

Nayuta's port is being handled "in-house", I doubt they're building a brand new game for Switch. This will be about getting a bigger cut of the Switch ports, rather than letting NIS/CLE publish them.
 
Oregano said:
Nayuta's port is being handled "in-house", I doubt they're building a brand new game for Switch. This will be about getting a bigger cut of the Switch ports, rather than letting NIS/CLE publish them.
Click to expand...

Yeah, that makes sense even if it is a little deflating. They are probably looking at their licensing fees and are thinking "Why should we share? Let's do it ourselves and keep all the revenue to ourselves!"
 
ILikeFeet said:
there's no reason to go exclusive
Click to expand...
To be fair, the same could be said about their PS exclusives. But I agree it most likely won't be exclusive, especially with them saying they are going to pursue the worldwide market. Sounds like they want to reach the most amount of people possible and that can't happen with exclusives.

EDIT: Oops, double post.
 
I have some serious doubts that Falcom will somehow manage to incorporate Switch development in time for a simultaneous launch. I'm guessing they mean they will be commissioning a port and publishing it themselves. Happy to be proven wrong, though.
 
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