After some solid initial sales in 2023 for Japanese publisher/developer Koei Tecmo and their studio Team Ninja with software such as Wo Long: Fallen Dynasty and the action RPG Wild Hearts, the returns ended up falling short of fiscal expectations. Based on reporting from VideoGames.si, a short note was sent out to investors, indicating that the financial forecasts for 2025 will see some revisions. Net sales and operating income have been lowered by 11.6% and 28%, respectively.

This likely has to do with recent releases like Rise of the Ronin, released on March 22, falling short on sales. While receiving fairly positive reviews from critics and faring well in sales in Japan, Rise of the Ronin's impact in the Western markets have seen it trounced by Capcom's release of Dragon's Dogma 2. Playing a part in this is Rise of the Ronin's sales dip could be its PlayStation 5 exclusivity, which has affected large releases like Final Fantasy VII Rebirth. The smaller install base leads to smaller returns. 

Koei Tecmo had originally projected to sell 5 million units prior to its release, and sat at the top sales charts upon launch and was 1st on PlayStation Store. In Japan, Princess Peach Showtime on the Nintendo Switch dethroned it a week later.

The sky isn't falling for Koei Tecmo. It's more a means of leveling out the lofty expectations for software performance in 2024. Rise of the Ronin is still doing fairly well for itself, the competition against it speaks volumes.

SOURCES: PlayStation Lifestyle, Videogames.si