For the coming fiscal year, Falcom is planning to focus on titles for Windows 7 and especially on creating games for the PSP. The company behind Ys and The Legend of Heroes series is going to release a series of games called under a “Falcom Super Price” brand, which will be a series of budget re-releases, including the Sora no Kiseki series and Gurumin. Also, Falcom is hoping to push for their more popular titles in the US and aiming for a worldwide audience, partially by cooperating with North American publishers.
The predicted profit for the middle of next year is 210 million yen, resulting in a 176% decrease in operating profits and 110% decrease in net income, whereas that for the whole of the next period is 1,120 million yen, with a 100% increase in operating profits and 60% increase in net income. The estimation for the middle of the period is very conservative, so the estimates of operating profits and net income are percent decreases while those for the whole year are increases.
The year hasn’t been a particularly good one for Nihon Falcom, nor has it been terrible either, according to their financial report for the fiscal year (whose period starts and ends in September). The company experienced a slight gain in profit from last year, an increase of 0.3%.
What does this increase consist of? Apparently, mostly of product sales, which have increased from the previous year by 81.1% of total proceeds to 86.0%. This consists of an increase in 56 million yen. However, Falcom also experienced a decline in their licensing proceeds, which had dropped from 18.9% of the total profits to 14.0%, a decrease in profit of 53 million yen. This showed a total decrease of 25.8% in profits from licenses since last year.
The plan for this period was to sell Windows 7 ports of established games, such as Zwei 2 Plus, Ys 1 & 2 Chronicles, and Legend of Heroes VI: Sora no Kiseki. Falcom also expanded upon their Legend of Heroes franchise and other series, as well as pushed for more content on the PSP platform in the form of Zwei!!, Brandish: Dark Revenant, Ys 1 & 2 Chronicles, and Ys 7 (the last being a brand new game instead of a port).
As a whole, Falcom foresee no significant changes to their financial position even though operating profits (also called “earnings before interest and taxes”) have decreased for 63.7% due to an increase in advertising costs. Possibly due to this, net income also fell by 74.8%. Despite this, however, they feel that it is highly likely that their current state of financial affairs will continue based on their capital-to-asset ratio.
Thanks to Denpa no Sekai for the link to the financial report.