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Koei Tecmo plans to go from 2,500 to 5,000 employees and lean further into AAA games, lowering expectations of mobile market

Thick Thighs Save Lives

NeoGAF's Physical Games Advocate Extraordinaire
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Following the publication of their earnings for the first half of the fiscal year, Koei Tecmo held a shareholders Q&A briefing where they gave some insights into their long-term development policy and expectations of the video game market.

Koei Tecmo has recently formed a new in-house AAA studio, and has already mentioned plans to make “yearly releases of major titles” a priority. According to their explanation to shareholders, this is because the company “expects the console and PC game market to grow” due to new hardware releases, as well as mobile gamers transitioning to PC and console games (an observation made based on the success of recent Chinese and Korean titles).

On the other hand, Koei Tecmo’s representatives noted that the mobile game market is already mature, and that “significant growth is unlikely to be seen.” In response to these market conditions, the company plans to establish a development framework that will allow them to “steadily produce AAA titles.” To this end, Koei Tecmo even intends to double their scale, going from 2,500 to 5,000 employees in the long run.

Koei Tecmo has the major release of Dynasty Warriors: Origins ahead, as well as mid-range titles like Fairy Tail 2 and Atelier Yumia. In addition, their AAA studio is currently working on an unannounced new title.

 

killatopak

Member
Konami revival was the last of my list of stuff I thought would ever happen but here we are.

A Castlevania game would blow my mind.

Edit. wait wtf I read the title wrong. In KT's case I would love a Toukiden sequel. I love that game so much I think I was the first ones to make a drop table in the game in a public google spreadsheet.
 
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Pejo

Gold Member
I think the mobile market is going to bottom out in the next 1-2 years. There are a handful of developers/publishers that get all of the money and most importantly the limited time and attention of players, the rest will slowly dry up. I think it's good that K-T isn't focusing on that market.
 
I think the mobile market is going to bottom out in the next 1-2 years. There are a handful of developers/publishers that get all of the money and most importantly the limited time and attention of players, the rest will slowly dry up. I think it's good that K-T isn't focusing on that market.
Do you mean the app store/google play store itself? If so I can kind of see your case since other storefronts with better games will become potentially playable on those platforms.
 

Mayar

Member
As I understand it, 2,500 people are no longer able to cope with the task of making swimsuits for the DOA, so we urgently need to increase the number to 5,000.
But seriously, for now these are just words, they can hire 10,000. The main thing is how they will use this resource and what tasks will be set for this team. Unfortunately, the number of people does not affect the quality of the final product.
 

Perrott

Member
I am a fan of Team Ninja but a rapid expansion sounds like a recipe for disaster.
How so? Team Ninja already makes AAA-scale games, but in what they're severely lacking of relative to their competitors are the production values. With this investment on AAA, I gather that Koei Tecmo's goal is to put their biggest games on par with the presentation quality of the tentpole releases from Square Enix, Capcom or Konami, which can only be a positive in my opinion.
 

Felessan

Member
“mobile gamers transitioning to PC and console games”

F-ing finally…
Those are the same games though, just played also on PC/Consoles (Genshin&co)

I think the mobile market is going to bottom out in the next 1-2 years. There are a handful of developers/publishers that get all of the money and most importantly the limited time and attention of players, the rest will slowly dry up. I think it's good that K-T isn't focusing on that market.
It will continue to thrive for at least next several years as post-genshin wave still pretty much in early stage
And Japanese just lost the game in mobile market to Chinese and Korean to lesser extent, so they decided to bail out.
 

lh032

I cry about Xbox and hate PlayStation.
How so? Team Ninja already makes AAA-scale games, but in what they're severely lacking of relative to their competitors are the production values. With this investment on AAA, I gather that Koei Tecmo's goal is to put their biggest games on par with the presentation quality of the tentpole releases from Square Enix, Capcom or Konami, which can only be a positive in my opinion.
their games sells....fine, quite a risk imo
 

Pejo

Gold Member
Do you mean the app store/google play store itself? If so I can kind of see your case since other storefronts with better games will become potentially playable on those platforms.
I mean the mobile gaming market is going to be harder and harder to break into as a whole. There was a bunch of low quality .png trash for years, but the products out there now are near AA/AAA quality in some cases, but as their budgets and aspirations grow, it doesn't leave room for games deemed "lesser". And let's be honest, K-T was only going to make cash grab games tied to middle-tier famous IPs, if they were going to try to dig into mobile. They don't have the budget, skill, or IP strength to try to go toe to toe with Star Rail or Genshin or even established games like Fate Grand Order.

It will continue to thrive for at least next several years as post-genshin wave still pretty much in early stage
And Japanese just lost the game in mobile market to Chinese and Korean to lesser extent, so they decided to bail out.
Agree with Japan losing the mobile market. I could see it happening real time, where they were so stuck in their ways and afraid to take true risks (mostly from a budgetary standpoint), that they got pushed out of the space they largely created. Even one of the biggest games from a cultural and sometimes revenue standpoint in Japan, Blue Archive, is Korean developed.

I think the money will still exist in the mobile market, but I think we're gonna see a few publishers/developers taking the lion share of revenue and you'll see an even bigger split than we regularly see now. It's going to drive a lot of games to go EoS, and make it tough for the middle-tier games to retain the revenue and playerbases that they currently have. New developers with derivative content and gameplay are going to get buried under your HoYoVerse, your Tencent, etc. K-T stands virtually no chance of busting up HoYo's revenue chokehold. And as I mentioned, it's not just about revenue at this point, it's also time.
 
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Japanese studios are coming back with a vengence. Everyone saw studios like Capcom, FromSoftware, etc having record sales and want in as well.

Japanese studios are basically "saving" the industry for me at the moment. It's really great to see. Compare this with the PS3 gen / early PS4 gen and it's night and day.
 

Felessan

Member
I think the money will still exist in the mobile market, but I think we're gonna see a few publishers/developers taking the lion share of revenue and you'll see an even bigger split than we regularly see now. It's going to drive a lot of games to go EoS, and make it tough for the middle-tier games to retain the revenue and playerbases that they currently have. New developers with derivative content and gameplay are going to get buried under your HoYoVerse, your Tencent, etc. K-T stands virtually no chance of busting up HoYo's revenue chokehold. And as I mentioned, it's not just about revenue at this point, it's also time.
There is a huge misconception there that there can be only "a few" gaas games, while last 10 years shows steadily trend of expanding and diversification. 10 years ago top ten games grabbed like 95% revenue, now it's like top 100 games.

Mobile games go through the same path PC/console games went - from the small similar games in a few genres to a wide presentation of genres, artstyles, mechanics etc. As people preferences widely different, they can't be covered with just a few games and mobile market will continue to spread it's revenue thin across more and more games. I envision that mobile will "eat" a lot of SP games pie before start to really slow down it's expansion.

And gaas knew about time for quite some time and they are fixing the issue in their own way. Mihoyo itself know that if one game grab all the time there will be no place for other games and Mihoyo has 4 games and probably plans for more. GaaS games just reduced time requirements, making daily requirement to as low as 30 minutes, providing burst windows of several hours to keep engagement from time to time but overall time footprint is kept reasonable. You can't really play Genshin or ZZZ 6 hours a day all the time. This approach leaves time window for other games and I know quite some gaas players who plays 2-3-4 games at the same time. Some even weave SP games in-between (I do it myself, playing SP games almost everyday in addition to BA and ZZZ)

And it's not like the biggest grab it all. Success of Blue Archive and NIKKE, those are AA games at best by current standards launched already in post-Genshin era, show that there is a place even for smaller niche games.
 
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Sharius

Member
hope i will finally get nioh 3, getting tired of get nioh clone now, stop pushing ronin or wulong, just give me a damn nioh 3
 

Clear

CliffyB's Cock Holster
Let Team Ninja make full blown AAA games without any compromise, I'll triple dip in every platform.

TN's output isn't compromised. They've been churning out winners since Nioh in 2017 but never get the respect they deserve because so much of the market values graphics more highly than gameplay.
 

Hookshot

Member
The Nintendo based Warriors games are nearing 8 million copies sold, both companies would be dumb to not be working on a Switch 2 game.
 

Zacfoldor

Member
This is good news, it's felt like they were poorly resourced for the past 4-5 years.

Big IP like Ninja Gaiden and Dead Or Alive have been mothballed and hopefully this mark a resurgence for this once great software house.
Rise of the Ronin is legit if you haven't tried it. At first I thought it was a little watered down in the combat dept vs their other games but the further I got into the game the better it felt and just a really great experience, especially on the pro. It's not Nioh 2 level but close. Honestly it's Ghosts of Tsushima level for me but many will find that blasphemy.

I think Nioh 2 is a masterpiece.
 
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I agree with sono.

I hope this decision benefits Koei Tecmo immensely and paves the way for more quality games like Dynasty Warriors: Origins going forward.
 

Fbh

Member
Hopefully some of those extra people get to help Team Ninja upgrade their tech.
Their games are fun to play but they somehow look very dated AND run like shit.
 
Hopefully some of those extra people get to help Team Ninja upgrade their tech.
Their games are fun to play but they somehow look very dated AND run like shit.
Team Ninja's Katana game engine is terrible. Hopefully this investment by Koei Tecmo allows Team Ninja to have longer development times with hopefully a new game engine. They have so much talent as a studio. Nioh 1 and 2 are absolutely incredible
 
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digdug2

Member
I know I say this in every Koei Tecmo thread... but they should make a new Rygar game. Not in the spirit of the PS2 game, but something that draws inspiration from the NES game but plays more along the lines of Rise of the Ronin or Nioh. It would be rad if you got different kinds of diskarmors, but you could wield other weapons as well. If the attention to detail and quality are there, I think it would sell well.
 

Fbh

Member
Team Ninja's Katana game engine is terrible. Hopefully this investment by Koei Tecmo allows Team Ninja to have longer development times with hopefully a new game engine. They have so much talent as a studio. Nioh 1 and 2 are absolutely incredible

Yeah Nioh 2 in particular is one of my favorite games of last gen.
But they really need to either update or change their engine, it was pasable last gen but it somehow feels like it got worse this gen.
Like Stranger of Paradise was surprisingly fun (I actually liked the combat better than in FFXVI) but it's the only full priced game this gen that I seriously and with no hyperbole think looks like a Ps3 game at times....and somehow it runs like shit too!!. With those visuals you'd at least expect native 4K60, but nope.
 
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LectureMaster

Gold Member
TN's output isn't compromised. They've been churning out winners since Nioh in 2017 but never get the respect they deserve because so much of the market values graphics more highly than gameplay.
They need to get talents on level design, as much as a big Nioh fan, the shortcomings in the regard were obvious. While I don't mind Ronin's graphics and think the art style is top tier, if their goal is to sell 5 million+, then yes they need better graphics to attract broader audience.
 

Griffon

Member
Have their PC/Consoles sales number gotten any better recently? Did I miss that fact?

Or is it just wishful thinking from executives because their mobile revenues are down?

Those two are very different things. And will lead to very different outcomes.
 
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