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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
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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.
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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.