KOEI TECMO HOLDINGS

Basic Information

Stock Code
3635
Industry
Information and Communications
Category Detail
Content Production & Distribution
Prefecture
Kanagawa Prefecture
Establishment Year
April 2009
Listing Year
April 2009
Official Website
https://www.koeitecmo.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nihon Falcom, Nippon Ichi Software, Yukes, Tose, Sega Sammy Holdings, Square Enix HD, Capcom, Konami

Overview

KOEI TECMO HOLDINGS is a leading company in the information and communications industry established in 2009, with strengths in historical content centered on game software development.

Current Situation

In the fiscal year ended March 2024, it recorded consolidated net sales of 84.5 billion yen, operating income of 28.5 billion yen, and net income of 33.8 billion yen, maintaining a stable revenue base. Its main business is home console game software development, where it has built a strong brand centered on historical themes. It is also expanding into online games and mobile business, supporting various game platforms. It has multiple development subsidiaries domestically and internationally, advancing into global markets. It has diverse sub-brands such as 'Kou Shibusawa,' 'Omega Force,' 'Team NINJA,' and 'Gust,' excelling in product development capabilities. It has overcome patent litigation issues and is pursuing enhancements in technology and IP. Headquartered in Yokohama, Kanagawa Prefecture, with a new head office in the Minato Mirai area. It focuses on sustainable development and regional contributions, strengthening its organizational structure toward its 2030 long-term strategic goals. Moving forward, it plans to improve management efficiency through consolidation of finance functions and executive refresh.

Trivia

Interesting Facts

  • Company born from the management integration of KOEI and TECMO
  • Live house-style hall attached in Yokohama Minato Mirai area
  • Global hit of the 'Nioh' game series
  • Owns numerous veteran brands of historical simulation games
  • History of being found partially liable for infringement and ordered to pay damages in patent litigation
  • Acquired multiple popular brands including Gust as subsidiaries
  • Early entry into online games and expanded membership
  • Social games with user base of 1 million people
  • Maintains good labor-management relations without an in-house labor union
  • Plans to strengthen structure through establishment of finance subsidiary in the future

Hidden Connections

  • Studio 'Gust' is known as the main development base for the Atelier series
  • Brand 'Team NINJA' is synonymous with high-difficulty action games
  • Live house 'KT Zepp Yokohama' is a facility directly connected to the group head office
  • Overseas development teams of subsidiaries form important bases in Asia
  • Relationship with Capcom drew attention in patent litigation over Samurai Warriors series
  • Eriki family deeply involved in management, maintaining traditions since founding
  • Owns multiple titles exceeding 1 million online game users
  • Holds many historic IPs in the Japanese game industry, exerting strong influence

Future Outlook

Growth Drivers

  • Sustained and expanding popularity of historical games domestically and internationally
  • Growth in online and mobile game markets
  • Active investment in new technologies and digital content fields
  • Promotion of multifaceted monetization leveraging brand power
  • Expansion of synergies with cultural and tourism promotion through regional partnerships
  • Sustainable management and maintenance of good labor-management relations
  • Strengthening of locally adapted marketing in overseas markets
  • Expansion of IP licensing business
  • Creation of new collaborations and partnerships
  • Profit structure strengthening through efficiency gains from organizational reforms

Strategic Goals

  • Integration and strengthening of digital platforms
  • Optimization of financial strategy through new finance subsidiary
  • Expansion of product and technology base through global M&A
  • Brand value enhancement through game museum establishment
  • Sustainable growth through promotion of ESG management
  • Deepening of IP strategy and promotion of multi-field expansion
  • Achieve over 50% sales ratio from online business
  • Development of diverse talent and creation of comfortable work environment
  • Growth target of approximately double operating income compared to previous period
  • Corporate activities balancing regional cultural promotion and economic contributions

Business Segments

Game Software Development Support

Overview
Provides technical support for game production and online operation support services.
Competitiveness
Abundant game development know-how and capital strength
Customers
  • Game development companies
  • Software publishers
  • Online platform operators
  • Distributors
Products
  • Game engine technology
  • Development tools
  • Online operation systems
  • Debugging services

Pachinko and Arcade Game Machine Manufacturing

Overview
Designs and manufactures pachinko and slot machines, supplying them to the market.
Competitiveness
Differentiation through utilization of popular game brands
Customers
  • Pachinko parlor operators
  • Game centers
  • Wholesalers
Products
  • Pachinko machines
  • Slot machines
  • Related parts

Content License Provision

Overview
Licensing business utilizing intellectual property from game titles.
Competitiveness
Ownership of diverse historical IPs and brand power
Customers
  • Media companies
  • Merchandise manufacturers and sellers
  • Advertising agencies
Products
  • Game IP usage rights
  • Character commercialization rights
  • Multimedia expansion

Online Platform Operations

Overview
Management and operation of online game platforms for own and third-party titles.
Competitiveness
Customer attraction power from large number of registered users
Customers
  • Game users
  • Sponsor companies
  • Advertisers
Products
  • Online game site operations
  • User data analysis
  • Advertising space sales

Overseas Sales Subsidiary Operations

Overview
Expansion and support for local markets by subsidiaries overseas.
Competitiveness
Extensive overseas network
Customers
  • North American market
  • European market
  • Asian market
Products
  • Local market game sales
  • Marketing support
  • Market research

Competitive Advantage

Strengths

  • Expertise in historical content
  • Diverse brands and IP portfolio
  • Technological strength from solid development subsidiaries
  • Global sales channel expansion
  • Support for diverse game platforms
  • Stable revenue base and high profit margins
  • Focus on sustainability and regional contributions
  • Strong brand recognition and fan base
  • New customer acquisition through collaborations and partnerships
  • Ownership of intellectual property across multiple areas

Competitive Advantages

  • Differentiation through fusion of historical simulation and action games
  • Market superiority from strong IPs and brand assets
  • Rapid product rollout capability from diverse subsidiaries
  • Broad対応 to online and mobile markets
  • Accumulated trust from advanced technology and stable management
  • Market expansion rooted domestically and internationally with localization
  • Marketing strategy utilizing fan communities
  • User trust from long-standing brands and history
  • Revenue diversification through multifaceted business model
  • Enhanced competitiveness through active investment in new businesses and technologies

Threats

  • Management burden from legal risks such as patent litigation
  • Competitors' technological innovations and new title releases
  • Demand uncertainty from game market trend changes
  • Intensifying competition in digital distribution
  • Copyright and intellectual property infringement issues
  • Political and economic risks in overseas markets
  • Increasing cyber security threats
  • Intensifying competition for talent acquisition
  • Increased business operation costs due to regulatory strengthening
  • Reduced consumer spending due to economic downturn

Innovations

2024: Completion of New Head Office KT Building

Overview
Completed a new head office building in the Minato Mirai area, incorporating a live house-style hall.
Impact
Contributes to improved business efficiency and enhanced external exchange environment

2023: Start of Collaboration with VTuber Agency ANYCOLOR

Overview
Began collaboration with a VTuber agency aiming to enter new digital entertainment areas.
Impact
Contributes to customer expansion in digital content areas

2022: Transition to Brand-Based Organizational Structure

Overview
Implemented organizational optimization by integrating game, online, and media divisions.
Impact
Achieved development efficiency and brand strengthening

2021: Announcement of Group Finance Function Consolidation Plan

Overview
Plans to establish a subsidiary for consolidating finance and fundraising functions.
Impact
Expected to improve capital efficiency and management capabilities

Sustainability

  • Conclusion of comprehensive partnership agreement with local communities
  • Office operations considering reduction of environmental impact
  • Promotion of diversity in game development
  • Promotion of sustainable resource use
  • Maintenance of good labor-management relations and workplace environment improvement