Koei Tecmo has reported a strong first quarter for FY2026, with digital game sales, downloadable content and its extensive back catalogue driving growth despite the absence of any major new game launches.
For the quarter ended June 30, 2026, the publisher reported net sales of ¥17.37 billion, up 17.4% year-on-year, while operating profit rose 51.3% to ¥5.41 billion. Ordinary profit increased 79.2% to ¥15.72 billion, and net profit climbed 86.9% to ¥11.35 billion.
Gaming remained the company’s core business, with its Entertainment segment generating ¥15.93 billion in sales and ¥5.29 billion in operating profit, accounting for roughly 92% of total revenue during the quarter.
Rather than being driven by a blockbuster launch, Koei Tecmo said the quarter was powered by existing titles, games released during the previous fiscal year, DLC, mobile games and licensing royalties.
Digital sales continue to outperform physical
The Console and PC business generated ¥7.55 billion in revenue, up 24.7% from ¥6.05 billion a year earlier.
While physical package sales were largely unchanged, slipping slightly from ¥2.16 billion to ¥2.13 billion, digital downloads climbed from ¥3.51 billion to ¥4.85 billion, making digital purchases the biggest contributor to growth. Download sales represented around 64% of Console and PC revenue during the quarter.
DLC revenue also increased significantly, rising 52% year-on-year from ¥380 million to ¥577 million, highlighting continued spending on post-launch content.
Game sales rose despite no major releases
Koei Tecmo sold 2.45 million Console and PC games during the quarter, compared with 1.56 million in the same period last year, an increase of approximately 57%.
The company attributed the improvement to the strength of its back catalogue rather than new releases.
North America was the largest market, accounting for 770,000 units sold, followed by Japan with 640,000, Asia excluding Japan with 560,000, and Europe with 480,000.
Digital purchases continued to dominate, representing 67.3% of all Console and PC unit sales.
Mobile games remain a major revenue source
Koei Tecmo’s mobile business also posted steady growth.
Revenue increased from ¥7.43 billion to ¥8.28 billion, with the company citing continued contributions from existing mobile titles and licensing royalties.
The figures mean the mobile business generated more revenue during the quarter than the entire Console and PC segment, underscoring the importance of recurring income from live-service games.
Strong margins lifted profits
Although revenue increased by 17.4%, operating profit grew much faster at 51.3%.
Koei Tecmo attributed the stronger profitability to the higher margins generated by digital sales. The company also noted that personnel costs increased, outsourcing expenses remained broadly flat and advertising costs were largely unchanged. Financial income also contributed to higher ordinary profit.
Major releases planned for the rest of FY2026
While the first quarter relied heavily on older titles, Koei Tecmo highlighted Attack on Titan 3 and Wo Long 2: Wings of Ember as its two major upcoming releases.
The publisher also said it is continuing to develop a mix of mid-sized and smaller projects to maintain a balanced release schedule and diversify revenue throughout the remainder of the fiscal year.
