Updated Mar 21, 2026 by Koei Tecmo
Koei Tecmo reported a 15.9% year-on-year decline in Q1 sales to 14.8 billion yen and a 55.5% drop in net profit, primarily due to a lack of major releases.
The company maintains its full-year sales forecast of 92 billion yen, anticipating a 10.6% annual increase driven by a second-half release schedule that includes 'Dynasty Warriors: Origins'.
Under the new Fourth Medium-Term Management Plan, the firm aims to become a top-ten global digital entertainment company with a cumulative operating profit exceeding 100 billion yen over three years and a minimum 30% operating profit margin.
Koei Tecmo is investing over 100 billion yen in human capital and infrastructure, including a 10% annual increase in personnel costs to support global expansion and AAA development.
The company is shifting toward a multi-platform development strategy using the proprietary Katana Engine and Unreal Engine to target growth in North America, Europe, China, and the Middle East.
Governance and shareholder return policies include transitioning to a board with over 50% external directors and maintaining a 50% consolidated payout ratio with a minimum annual dividend of 50 yen.
Koei Tecmo reported a 15.9% year-on-year decline in Q1 sales to 14.8 billion yen and a 55.5% drop in net profit, primarily due to a lack of major releases.
The company maintains its full-year sales forecast of 92 billion yen, anticipating a 10.6% annual increase driven by a second-half release schedule that includes 'Dynasty Warriors: Origins'.
Under the new Fourth Medium-Term Management Plan, the firm aims to become a top-ten global digital entertainment company with a cumulative operating profit exceeding 100 billion yen over three years and a minimum 30% operating profit margin.
Koei Tecmo is investing over 100 billion yen in human capital and infrastructure, including a 10% annual increase in personnel costs to support global expansion and AAA development.
The company is shifting toward a multi-platform development strategy using the proprietary Katana Engine and Unreal Engine to target growth in North America, Europe, China, and the Middle East.
Governance and shareholder return policies include transitioning to a board with over 50% external directors and maintaining a 50% consolidated payout ratio with a minimum annual dividend of 50 yen.