Koei Tecmo Q2 FY3/2023 Financial Results

[MarcoP90]

https://www.koeitecmo.co.jp/ir/docs/ir1_20221031.pdf

Summary for the first two quarters of FY3/2023 (million Yen)

Sales - 37.220 (-6,6% over the first quarter of FY3/2022)
Operating Profit - 18.321 (+11,6%)
Ordinary Profit - 17.667 (-29,5%)
Net Profit - 13.648 (-24,8%)

Sales amount by regions for the first two quarters of FY3/2023 (million Yen)

Japan - 17.621 | 50,7% of total sales (-6,3% over the first quarter of FY3/2022)
Overseas - 17.141 | 49,3% of total sales (-7%); of which:

N. America - 4.230 | 12,2% of total sales (-14,4%)
Europe - 1.215 | 3,5% of total sales (-29,7%)
Asia - 11.696 | 33,6% of total sales (-0,5%)

Sales milestones summary

Fire Emblem Warriors: Three Hopes (NSW) - 1.000.000
Nobunaga's Ambition: Rebirth (PS4/NSW/PC) - 200.000
Taiko Risshuden V (NSW/PC) - 180.000 (20.000 in Q2 FY3/2023)
Winning Post 9 2022 (PS4/NSW/PC) - 100.000 (10.000 in Q2 FY3/2023)

Financial presentation (Japanese) - https://www.koeitecmo.co.jp/ir/docs/ir3_20221031_01.pdf

Previous threads

FY3/2023

Q1 - https://www.installbaseforum.com/forums/threads/koei-tecmo-q1-fy3-2023-financial-results.944/

 

[Oregano]

They haven't posted the English version, have they?

I couldn't find it.

 

[Lelouch0612]

KT is still a very Asian focused company (~84% of total sales this FY).

Their upcoming output should diversify things a bit (Wild Hearts in 2023 and Ronin in 2024).

 

[BTB123]

They announced the 1M milestone for FEW in mid August. I had hoped they'd announce 1.1 or 1.2M for the game now.

 

[fiendcode]

KT is still a very Asian focused company (~84% of total sales this FY).

Their upcoming output should diversify things a bit (Wild Hearts in 2023 and Ronin in 2024).

Those won't be reflected though since they're published by EA and SIE overseas. Same thing encountered with Nioh and Nintendo Musou.

 

[muro9685]

Nobunaga's Ambition: Rebirth and Fire Emblem Warriors: Three Hopes did really well. Nice.

 

[mariodk18]

They announced the 1M milestone for FEW in mid August. I had hoped they'd announce 1.1 or 1.2M for the game now.

There was no DLC for this game correct? FEW1 and AoC both had quite a DLC roadmap. I presume the lack of any DLC has affected the game's legs.

 

[awng782]

KT is still a very Asian focused company (~84% of total sales this FY).

Their upcoming output should diversify things a bit (Wild Hearts in 2023 and Ronin in 2024).

Wo Long is the true test since it is actually owned and published by KT.

 

[ggx2ac]

As per my thread: https://www.installbaseforum.com/fo...for-sega-capcom-bandai-namco-koei-tecmo.1160/

Here's the data for Koei Tecmo FY3/23

+---------------------------+
| Koei Tecmo     | FY3/2023 |
+---------------------------+
| Segment Information |
+---------------------+
+-------------+
| Console     |-------------+
| Package & DL|    Sales    |
+---------------------------+
| 1st Quarter |     ¥8,715M |
+---------------------------+
| 2nd Quarter |     ¥5,918M |
+===========================+
| First Half  |    ¥14,633M |
+---------------------------+
+====================================+
| Console     | Sales Per | Software |
| Package & DL|  Software |    Units |
| Total       |      Unit |          |
+------------------------------------+
| 1st Quarter |    ¥2,820 |    3.09M |
+------------------------------------+
| 2nd Quarter |    ¥3,722 |    1.59M |
+====================================+
| First Half  |    ¥3,127 |    4.68M |
+------------------------------------+

 

[AruanaRiva]

Software sales a bit down from 2nd quarter it seems. I wonder if that FEW number being stuck at 1m is because it had weak legs or it is because Koei is not updating the number there. Feels like it should have been keep selling there and not totally died for the legs.

Does the lack of DLC really hurt its legs power.

 

[awng782]

Software sales a bit down from 2nd quarter it seems. I wonder if that FEW number being stuck at 1m is because it had weak legs or it is because Koei is not updating the number there. Feels like it should have been keep selling there and not totally died for the legs.

Does the lack of DLC really hurt its legs power.

Hyrule Warriors Age or Calamity shipped 3M in its launch week and 4M by the end of 2021, over a year later. Warriors titles are generally pretty frontloaded so I doubt FE Warriors will sell much more than 1M lifetime.

 

[AruanaRiva]

Hyrule Warriors Age or Calamity shipped 3M in its launch week and 4M by the end of 2021, over a year later. Warriors titles are generally pretty frontloaded so I doubt FE Warriors will sell much more than 1M lifetime.

There is frontloaded and then there is absolute no Legs though. Even FEW actually leg itself to 1m there. I don't see how FEW: 3H actually had even weaker legs than previous one when it had much better WoM and bigger launch as well.

 

[KR_EP]

Summary for the first two quarters of FY3/2023 (million Yen)

Sales - 37.220 (-6,6% over the first quarter of FY3/2022)
Operating Profit - 18.321 (+11,6%)
Ordinary Profit - 17.667 (-29,5%)
Net Profit - 13.648 (-24,8%)

Sales amount by regions for the first two quarters of FY3/2023 (million Yen)

Japan - 17.621 | 50,7% of total sales (-6,3% over the first quarter of FY3/2022)
Overseas - 17.141 | 49,3% of total sales (-7%); of which:

N. America - 4.230 | 12,2% of total sales (-14,4%)
Europe - 1.215 | 3,5% of total sales (-29,7%)
Asia - 11.696 | 33,6% of total sales (-0,5%)

Sales milestones summary

Fire Emblem Warriors: Three Hopes (NSW) - 1.000.000
Nobunaga's Ambition: Rebirth (PS4/NSW/PC) - 200.000
Taiko Risshuden V (NSW/PC) - 180.000 (20.000 in Q2 FY3/2023)
Winning Post 9 2022 (PS4/NSW/PC) - 100.000 (10.000 in Q2 FY3/2023)

Taiko Risshiden 6 must've been greenlit by now considering the enhanced port is selling in line with the Nobunaga's Ambition: Rebirth . If not, then Koei Tecmo best get on it sharpish!

KT is still a very Asian focused company (~84% of total sales this FY).

Their upcoming output should diversify things a bit (Wild Hearts in 2023 and Ronin in 2024).

Must be a Sakoku Strategy game policy in effect at Koei Tecmo as neither Nobunaga's Ambition Rebirth, Taiko Risshiden V DX or Winning Post 9 2022 can be accessed on Steam from my location. Very odd consider the Kou Shibusawa Archives are available despite the lack of localisations for them. Will email Koei Tecmo about this & if they've plans for localisations. Even if they haven't spare development capacity of wholly new projects, lots of missed opportunities by Koei Tecmo to draw upon its vast combined back catalogue for reissues/remasters/remakes:

Koei:

Tecmo:
Fatal Frame/Project Zero Collection, Rygar (Tengo Project), Saiyuki: Journey West (edit: Koei not Tecmo) & Secret of the Stars (M2 remasters, Tengo Project remakes or 2D HD remakes like Square Enix), Tecmo Bowl Collection (M2) Tecmo's Deception VR remake for PC/PS5 plus the more obvious choices like sequels/reboots of Dead or Alive, Ninja Gaiden & Fatal Frame.

Gust:

 

[AruanaRiva]

Taiko Risshiden 6 must've been greenlit by now considering the enhanced port is selling in line with the Nobunaga's Ambition: Rebirth . If not, then Koei Tecmo best get on it sharpish!

Must be a Sakoku Strategy game policy in effect at Koei Tecmo as neither Nobunaga's Ambition Rebirth, Taiko Risshiden V DX or Winning Post 9 2022 can be accessed on Steam from my location. Very odd consider the Kou Shibusawa Archives are available despite the lack of localisations for them. Will email Koei Tecmo about this & if they've plans for localisations. Even if they haven't spare development capacity of wholly new projects, lots of missed opportunities by Koei Tecmo to draw upon its vast combined back catalogue for reissues/remasters/remakes:

Koei:

Tecmo:
Fatal Frame/Project Zero Collection, Rygar (Tengo Project), Secret of the Stars & Saiyuki: Journey West & Secret of the Stars (M2 remasters, Tengo Project remakes or 2D HD remakes like Square Enix), Tecmo Bowl Collection (M2) Tecmo's Deception VR remake for PC/PS5 plus the more obvious choices like sequels/reboots of Dead or Alive, Ninja Gaiden & Fatal Frame. (edit: typos)

Gust:

I am actually still in disbelief that Koei never tried doing Qin Empire rise to glory ROTK style game. Kingdom has popularized that era of warring age to many japanese audience. It is like free money there.

 

[cw_sasuke]

@KR_EP I don't have anything to add just wanted to say that i appreciate the comments and insights you provide in your posts. Lots of useful and interesting information.

 

[Stygr]

Wo Long is the true test since it is actually owned and published by KT.

Wo Long might be a test for China, it's day and date on PC and Sekiro performed pretty well in China.

A hardcore action game based on chinese mythology can do pretty great, we will see.

In EU and NA i don't know how much appealing Wo Long is going to be.

 

[Diaochan]

I am actually still in disbelief that Koei never tried doing Qin Empire rise to glory ROTK style game. Kingdom has popularized that era of warring age to many japanese audience. It is like free money there.

Well you can play as Ying Zheng and the other generals in that era to unite China in ROTK14 via DLC:

Reason why it is not free money:
The China Warring States period is nowhere as popular or mainstream as Sangokushi in Japan or anywhere else. Also the genre is very niche, if ROTK/NA can only sell in the range of 100k-200k, then selling 50k-70k of the Warring States period game isn't very attractive. Long time ago a Taiwan gaming company made a RTS game based on the era and only sold 30k.

Lastly, because of the books burning by the Emperor history suffered one of the greatest losses of ancient times. Extremely few state history books before Qin have survived. Without deeper and more accurate source materials it's hard to make a game based on this period. Koei's Rise of the Phoenix is closest to the era but it was not nearly as popular as ROTK that's for sure.

 

[MysticGon]

Wild Hearts and Wo Long might net them 1 million + sales each but their real money make won't be until Rise of the Ronin. Clearly has a lot more money behind it and with Sony coming in as the international publisher it can be as bigger or bigger than Nioh.

Unfortunately it will likely be the worst seller of the 3 in Japan.

 

[AruanaRiva]

Well you can play as Ying Zheng and the other generals in that era to unite China in ROTK14 via DLC:

Reason why it is not free money:
The China Warring States period is nowhere as popular or mainstream as Sangokushi in Japan or anywhere else. Also the genre is very niche, if ROTK/NA can only sell in the range of 100k-200k, then selling 50k-70k of the Warring States period game isn't very attractive. Long time ago a Taiwan gaming company made a RTS game based on the era and only sold 30k.

Lastly, because of the books burning by the Emperor history suffered one of the greatest losses of ancient times. Extremely few state history books before Qin have survived. Without deeper and more accurate source materials it's hard to make a game based on this period. Koei's Rise of the Phoenix is closest to the era but it was not nearly as popular as ROTK that's for sure.

While Warring States Period indeed is not as popular as 3 Kingdom eras, Kingdom manga and the movie has certainly bring it to the mindshares of people in Japan there.

The manga is 90m seller and Its first movie got really high praise from critic and actually generates 5.69 billion Yen in Japan alone and around 50m Dollar in total worldwide earnings. This huge success has lead to second movie immediately greenlight as well so it shows warring states era is just goldmine that can be used by Koei there.

I also disagree that just because Nobunaga and RoTk is more popular so Koei does not need to give the other a spin. Why? Because they literally give Taiko Rishiden a spin just this year and they are handsomely rewarded. The game got great review, great wom and of course good sales for such spin off title. There is 0 reason for Koei to not want to experiment there.

On the books in accuracies. I dont think Koei will cares. They has 0 problem doing ROTK and DW via the very romantized story of Sangokushi based on Liu Bei fanboy writers. The warring states may have lost history but there is also many books from different region like Chu, Qi, Yan or even the big Han dynasty which did its best in its life to demonize Qin dynasty glory. There is many that they can do there with lots of liberties as well.

I believe not trying to branch to warring states era asap at this point is just missing out on free money.

 

[Diaochan]

While Warring States Period indeed is not as popular as 3 Kingdom eras, Kingdom manga and the movie has certainly bring it to the mindshares of people in Japan there.

The manga is 90m seller and Its first movie got really high praise from critic and actually generates 5.69 billion Yen in Japan alone and around 50m Dollar in total worldwide earnings. This huge success has lead to second movie immediately greenlight as well so it shows warring states era is just goldmine that can be used by Koei there.

I also disagree that just because Nobunaga and RoTk is more popular so Koei does not need to give the other a spin. Why? Because they literally give Taiko Rishiden a spin just this year and they are handsomely rewarded. The game got great review, great wom and of course good sales for such spin off title. There is 0 reason for Koei to not want to experiment there.

On the books in accuracies. I dont think Koei will cares. They has 0 problem doing ROTK and DW via the very romantized story of Sangokushi based on Liu Bei fanboy writers. The warring states may have lost history but there is also many books from different region like Chu, Qi, Yan or even the big Han dynasty which did its best in its life to demonize Qin dynasty glory. There is many that they can do there with lots of liberties as well.

I believe not trying to branch to warring states era asap at this point is just missing out on free money.

But it's the Kingdom manga that's gotten popular, not the actual history. It seems very risky to branch out to a niche era in such a niche genre imo. Such a game would be too similar to ROTK anyway.

Taiko Risshiden V DX is a remastered version of an old game that fans have been praising and asking for decades, there's no comparison to a brand new game based on an era that they have never really done before. I'm sure they have thought about it but decided not to pursue any further.

For war simulation games to branch out on they can easily do Fire Emblem, Suikoden, Uncharted Waters, or even Genghis Khan as gamers and Kou Shibusawa themselves are more familiar with these anyway.

 

[AruanaRiva]

But it's the Kingdom manga that's gotten popular, not the actual history. It seems very risky to branch out to a niche era in such a niche genre imo. Such a game would be too similar to ROTK anyway.

Taiko Risshiden V DX is a remastered version of an old game that fans have been praising and asking for decades, there's no comparison to a brand new game based on an era that they have never really done before. I'm sure they have thought about it but decided not to pursue any further.

For war simulation games to branch out on they can easily do Fire Emblem, Suikoden, Uncharted Waters, or even Genghis Khan as gamers and Kou Shibusawa themselves are more familiar with these anyway.

Everything always has a risk. The thing with Kingdom is, it is popular but it is also all based on popular general, strategist, kings of that era.

Many of them which are also popular in China mainland and even Taiwan and Hong Kong as we keep seeing many documentary or even drama that talk about warring states. That mean if the game is made, it certainly has far better market to serve. At least better than Uncharted Waters(It hurts me as big UW fans) or even Genghis Khan thats not much popular anymore now.

General like Li Mu, Wang Jian, Bai Qi, Xiang Yan. Or Politician like Wu Qi, Li Shi, Lu Bu Wei, Sun Bin,etc and many more.

The latest RoTk is more of those hexagon like RTS where it is not as fun as original classic ROTK. I think they can make Warring States game with classic RoTK formula there. It will be different enough.

 

[KR_EP]

It seems very risky to branch out to a niche era in such a niche genre imo.

Koei Tecmo is a publicly listed, multi-billion dollar corporation, it can afford to make new games in any genre it wants, especially when they'd be drawing upon existing work, as Wo Long: Fallen Dynasty is doing with Ni-Oh 1 & 2. Making a wider variety of strategy games is worth trying, besides they're sold at a high retail price with limited editions & digital sales so its not risky. They got to where they are today, making varied games in the same genre like the ones I mentioned in my post above. It's not as if the Kessen & Dynasty Tactics series in the 2000s stopped Koei making Nobunaga or ROTK games. I'm with @AruanaRiva 100% on trying a different period of Chinese history, could even pay for the 'Kingdom' license, perhaps alternating between one & the other to mix it up, spread out the new entries more to avoid series fatigue by planning out a development pipeline for the next decade or so. But we gotta ask 'em (nicely) for English localised versions too!