Tecmo Koei Posts $20M Loss, Citing Weak Wii, Overseas Market

Author: by Chris Remo, Brandon Sheffield

Recently-merged holding company Tecmo Koei has posted a 1.84 billion yen ($20.4 million) loss in its third quarter, blaming the results on a soft Wii market, weak overseas sales, and the postponement of marquee games. The company has delayed subsidiary Team Tachyon's Gears of War-esque Quantum Theory, moving it out of its planned Japanese release period of March to an unspecified date, as well as Omega Force's RPG Trinity: Souls of Zill O'll. According to a Fisco report, the delays and other factors have led Tecmo Koei to lower its year-end profit projection from 7.4 billion yen ($81.9 million) to nearly the break-even point at 200 million yen ($2.2 million). Tecmo Koei also says it has faced trouble in the emerging online game market, calling its efforts in that area a "close fight." The publisher was formed last April, when Tecmo snubbed Square Enix's takeover proposal in favor of initiating a stock-based merger with Koei. Tecmo Koei stock fell 9.5 percent to 630 yen ($6.97) per share after the news broke. Fisco believes the young conglomerate's problems will get worse before they get better, predicting a further decline in stock value before an eventual stabilization and increase.