Koei Tecmo announced on April 20 that it has revised its earnings forecast for the fiscal year ending March 2026, and the numbers are looking much better than the company originally expected. The Japanese developer and publisher had previously projected that revenue would grow but profits would fall compared to the year before. According to GameBiz, the updated forecast tells a new story, with net sales, ordinary profit, and net profit all now expected to hit record highs.

Koei Tecmo pointed to two reasons for the upward revision. The first is that its games released in the last quarter performed better than expected. The second is that income from activities outside of game development, such as investment returns, came in well above projections.

On the games side, the company had a notably strong quarter. Nioh 3 and Fatal Frame II: Crimson Butterfly Remake both launched to “Very Positive” user ratings on Steam. Nioh 3 crossed 1 million units sold across all platforms. The biggest release of the period, though, was Pokemon Pokenopia, a life simulator developed by Koei Tecmo for The Pokemon Company. The game launched on March 5 and sold over 2.2 million units in its first four days.

Despite those impressive sales figures, the numbers reveal something interesting about where Koei Tecmo’s profits actually came from. Strong game sales are reflected in an operating profit increase of 16.1%, which is solid on its own. But ordinary profit, which includes income from investments and other non-core activities, is up by a staggering 50%.

This is not new territory for Koei Tecmo. The company has long operated as an institutional investor alongside its game business, managing a large pool of capital through stocks and other financial assets.