Nihon Falcom has shared new insight into its development strategy, use of generative AI, and future projects during a recent investor meeting that included a detailed Q and A session. The discussion covered a wide range of topics, including the status of long-running series, internal development challenges, and how the company is adapting to rising costs and shifting platforms.
One of the more notable disclosures involved Falcom’s cautious adoption of generative AI. According to the developer, AI tools are currently being used for scenario brainstorming and research, as well as identifying typos and omissions in scripts. The company stressed that legal considerations remain a concern and that usage is limited. Even so, Falcom noted a clear efficiency gain, stating that tasks which previously took two to three hours can now be completed in roughly ten minutes. This approach positions AI as a support tool rather than a replacement for creative staff.
Questions also touched on the long-requested Tokyo Xanadu sequel. Falcom acknowledged the absence of recent updates but suggested that more information is coming. With the company’s 45th anniversary taking place next year, Falcom indicated that it intends to make a major impact with new announcements, adding that while current reveals may feel modest, fans should wait for news on upcoming titles tied to that milestone.
Sales performance and platform strategy were another major focus. Falcom addressed concerns about The Legend of Heroes: Trails in the Sky 1st Chapter, particularly comparisons to Kai no Kiseki. While first week sales were lower domestically, the company stated that Sky is performing best in the North American market and is also showing growth in China. Falcom emphasized that rising development costs make mobile expansion risky and questioned whether such efforts could realistically break even.
The remake of Trails in the Sky 1st Chapter also played an internal role at the studio. Falcom explained that the project was used to train younger staff, with development intentionally structured to allow creative freedom. Personnel from the Kai no Kiseki team supported the remake, particularly on the programming side, helping maintain production stability.
Additional discussion covered Steam sales reporting, employee hiring needs, demo strategies, and long-term plans to unify digital publishing efforts. Falcom also reiterated that it does not design games with complete editions in mind, though such releases may occur if platform transitions make them necessary.
