Japanese game developer Nihon Falcom Corp. forecasts its profits will decline across the board in fiscal 2025, as development costs for new titles offset gains from its popular role-playing game franchises.
The Tokyo-based company expects net income to fall 6.1% to ¥800 million ($5.3 million) for the year ending September 2025. Sales are projected to slip 1% to ¥2.5 billion.
The maker of the “Trails” series, which has sold over 8 million copies globally, cited increased investments in multiple new projects including updates to its “Tokyo Xanadu” franchise. These development costs are eating into margins despite steady licensing revenue from overseas releases.
For the latest fiscal year, Nihon Falcom reported a 6.5% drop in net profit to ¥852 million, even as revenue rose 2.1% to ¥2.52 billion. The company’s licensing division, which handles overseas versions and platform ports, grew sales 2.7% to ¥1.88 billion.
The developer plans to release a new installment in the Trails franchise next fiscal year, temporarily titled “Trails in the Sky the 1st.” It’s also expanding its presence on Nintendo’s Switch platform through ports of existing titles.
