Koei Tecmo recently shared its earnings report for the first half of the fiscal year and held a shareholder Q&A session, shedding light on its long-term development strategy and expectations for the video game market. The company outlined ambitious plans to capitalize on emerging trends, particularly in the console and PC gaming sectors, as it positions itself for future growth.
One major highlight from the briefing was the announcement of a newly established in-house AAA studio, a key component of Koei Tecmo’s strategy to prioritize “yearly releases of major titles.” This decision aligns with the company’s projection that the console and PC gaming markets will expand, driven by two primary factors: the introduction of new gaming hardware and a noticeable shift among mobile gamers transitioning to PC and console platforms. Koei Tecmo cited the success of recent Chinese and Korean titles as evidence of this trend, suggesting a growing appetite for high-quality gaming experiences beyond mobile devices.
While optimism surrounds the console and PC markets, Koei Tecmo expressed a more cautious outlook for mobile gaming. Company representatives noted that the mobile game market has matured, making “significant growth unlikely.” This assessment underscores the rationale behind their focus on AAA development and the decision to allocate resources toward creating a robust pipeline of high-budget, high-quality titles. To achieve this, Koei Tecmo plans to dramatically scale up its operations, with the long-term goal of doubling its workforce from 2,500 to 5,000.
Looking ahead, Koei Tecmo has an exciting slate of projects. Among their upcoming releases is Dynasty Warriors: Origins, a flagship title that reflects the company’s continued investment in its iconic franchises. Alongside this significant release, Koei Tecmo is also developing mid-range titles such as Fairy Tail 2 and Atelier Yumia, catering to a broader audience with diverse gaming preferences. Meanwhile, the newly formed AAA studio is working hard on an unannounced project, further signaling Koei Tecmo’s commitment to delivering innovative, large-scale gaming experiences.
These developments highlight a significant shift in Koei Tecmo’s approach to navigating the evolving gaming landscape. By focusing on the growing console and PC markets, building a robust in-house AAA studio, and expanding its workforce to support this vision, the company aims to establish itself as a leading player in the global gaming industry. With a clear strategy and an exciting lineup of titles, Koei Tecmo’s future appears poised for steady growth in a competitive market.