Koei Tecmo revises earnings forecast upward after Pokémon Pokopia and Nioh 3 success

Koei Tecmo has raised its earnings forecast following strong performances from Pokémon Pokopia and Nioh 3. The publisher anticipates higher net sales, operating profits, and net profits for the fiscal quarter. This update reverses an earlier statement that no forecast would be issued.

Koei Tecmo attributed the revised forecast to the overperformance of its recent releases, including the Nintendo Switch 2 title Pokémon Pokopia and Nioh 3. The company had previously indicated in an earnings document on its website that no updated forecast was expected, highlighting the unexpected strength of these games' sales and reception. Pokémon Pokopia quickly became one of the largest Pokémon spinoffs, driving a surge in Nintendo's share value and earning praise from fans, including Eurogamer reviewer Lottie Lynn. Meanwhile, Nioh 3 broke series sales records and received widespread acclaim, with Eurogamer's Dom Peppiat calling it 'a new high for Team Ninja.' Koei Tecmo recently launched the Fatal Frame 2: Crimson Butterfly remake and plans to release Dead or Alive 6 Last Round.

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Following its March 5 launch on Nintendo Switch 2, Pokémon Pokopia has sold 2.2 million copies worldwide in its first four days, including 1 million in Japan. As players engage with its post-apocalyptic life sim themes of loss and rebuilding in a humanless Kanto, fan artists are creating poignant illustrations capturing the Pokémon's grief.

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Nintendo is reducing production of its Switch 2 console by a third this quarter, from six million to four million units, following disappointing holiday sales in the United States. The move comes despite a strong launch, with sales now lagging behind expectations amid a thin software lineup. Shares in the company fell 6.3 percent in Tokyo after the news broke.

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