Nihon Falcom has exceeded expectations with their latest financial results for the second quarter of the fiscal year ending in September 2024.
Today, the Japanese company is widely recognized for its Trails franchise among audiences. However, a notable downside with Nihon Falcom products is the extended duration it takes for their expansive JRPGs to be translated for Western fans.
Consequently, eager enthusiasts often take matters into their own hands, creating English translation patches for their games like The Legend of Heroes: Kuro no Kiseki I & II with the first of these titles scheduled for actual release in the West on July 5th with its sequel still yet to be determined.
It’s hardly unexpected that the Trails JRPG franchise has been steadily gaining traction in Western territories. While giants like Square Enix seem to have stagnated, particularly in comparison to Final Fantasy and similar titles, Trails games stand out for their expansive, immersive narratives. One of the franchise’s highlights is its richly interconnected storylines.
Moreover, it’s worth noting that the series boasts a diverse cast of appealing female characters, a rarity in modern gaming. In recent memory, there have been only a few Japanese game developers like Falcom producing titles of comparable depth and quality.
Nihon Falcom’s latest financial report reveals an impressive performance, with sales figures soaring by 11% compared to the previous year. Operating profits have surged even further, boasting a remarkable 28.2% increase, while quarterly net income has also seen a substantial rise of 24.9%.
This outstanding report surpasses their initial expectations. Looking ahead to the fiscal year ending in September 2024, Nihon Falcom anticipates continued success. They project a modest yet steady increase in net sales by 1.1%, along with a robust 9.6% rise in operating income. Furthermore, they expect a commendable 12.2% growth in net income over the course of this period.
Falcom is dedicated to crafting engaging gaming experiences and services for audiences across most platforms. During this financial period, they launched Ys X: Nordics exclusively for Sony PlayStation 4/5 and Nintendo Switch platforms in Japan back in September 2023.
Additionally, Falcom released the music album “Adol Christin – Ys 35th Anniversary Music Work” in October 2023, followed by the original soundtrack for Ys X: Nordics in January 2024.
In February, Falcom debuted The Legend of Heroes: Kuro no Kiseki I for the Nintendo Switch. Their track record speaks volumes, with nearly every release garnering commercial success, even within Japan.
Falcom consistently delivers standout original soundtracks.
Looking forward, their future looks bright, with active development in progress for the next Trails series installment, “The Legend of Heroes: Kai no Kiseki -Farewell, O Zemuria-“.
Furthermore, Nihon Falcom disclosed that cumulative sales for the Trails series have exceeded 7.5 million units. Additionally, they have several other projects underway, including the recent announcement of an action RPG titled “Tokyo Xanadu New Project” to commemorate the series’ 10th anniversary. Despite successful translated releases of Ys X: Nordics and The Legend of Heroes: Trails into Reverie, Falcom’s licensing department faced a setback of 17.1%, resulting in sales worth 878 million yen ($5.66 million USD).
Falcom’s overall net sales reached 10,130 million yen ($65.4 million USD), a decrease of 0.9% from last year, marred by the decrease in their overall operating income by 28.2% to 505 million yen ($3.26 million USD), ordinary income by 24.8% to 515 million yen ($3.32 million USD), and quarterly net income by 24.9% to 357 million yen ($2.3 million USD) compared to the same period last year.
Their total assets by the end of the quarter amounted to 10,037 million yen ($64.7 million USD), with liabilities at 353 million yen ($2.28 million USD), and net assets at 9,684 million yen ($62.5 million USD), indicating a 1.6% increase compared to the end of the previous fiscal year.
Despite overall declines, the company remains profitable, unlike many Western ventures that prioritize ESG and DEI initiatives with ballooning budgets over immersive gaming experiences that consumers are willing to pay for.
Personally, I hope Falcom eventually prioritizes timely translated releases of their consistently popular games, rather than consumers having to wait multiple years for an official release.
You can access Falcom’s financial report yourself through the provided link.
