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  Tecmo Koei Posts $20M Loss, Citing Weak Wii, Overseas Market
by Chris Remo, Brandon Sheffield [PC, Console/PC]
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February 2, 2010
 
Tecmo Koei Posts $20M Loss, Citing Weak Wii, Overseas Market

Recently-merged holding company Tecmo Koei has posted a 1.84 billion yen ($20.4 million) loss in its third quarter, blaming the results on a soft Wii market, weak overseas sales, and the postponement of marquee games.

The company has delayed subsidiary Team Tachyon's Gears of War-esque Quantum Theory, moving it out of its planned Japanese release period of March to an unspecified date, as well as Omega Force's RPG Trinity: Souls of Zill O'll.

According to a Fisco report, the delays and other factors have led Tecmo Koei to lower its year-end profit projection from 7.4 billion yen ($81.9 million) to nearly the break-even point at 200 million yen ($2.2 million).

Tecmo Koei also says it has faced trouble in the emerging online game market, calling its efforts in that area a "close fight."

The publisher was formed last April, when Tecmo snubbed Square Enix's takeover proposal in favor of initiating a stock-based merger with Koei.

Tecmo Koei stock fell 9.5 percent to 630 yen ($6.97) per share after the news broke. Fisco believes the young conglomerate's problems will get worse before they get better, predicting a further decline in stock value before an eventual stabilization and increase.
 
   
 
Comments

Ian Uniacke
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Blaming the weak wii market seems to becoming a bit of a whipping boy at the moment. Without trying to get into an argument about the strength of that market, no one is forcing these companies to invest in wii. Sounds more like excuses to me.

Fábio Bernardon
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I wonder what big, AAA titles these companies blaming the Wii have deployed in that system. Releasing a bunch of cheap games and complaining they don't sell seems irrational to me.

Uyiosa Iyamu
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This has to be the strangest Wii citing for loss, I've seen.

My memory tells me, the biggest Wii games from both Tecmo and Koei on the title were a enhanced port of a early PS2 Rygar game and a yet to be released outside of Japan, two month old Samurai Warriors 3. It is hard to believe that they are putting the blame the Wii sales, based off of two (really 1.5) games.

Christian Keichel
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There was the fourth installment of Project Zero (Fatal Frame) for the Wii, it was published by Nintendo itself in Japan and developed be Grashopper, but I think, as the first three titles were developed by Tecmo, they were involved here too in some form. Strangely Nintendo never published the game outside Japan (despite good sales) a wrong decision in my opinion and Tecmo doesn't seem to be able to achieve the publishing rights for outside Japan.


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