Tecmo Koei CEO quits as losses mount
Following 27.5% drop in sales, Kenji Matsubara announces plans to step down for personal reasons; Koei cofounder Yoichi Erikawa taking over.
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Today Tecmo Koei reports its earnings for the six months ending September 30, 2010. According to a translation by Japanese gaming blog Andria Sang, the period saw sales fall 27.5% to ¥11.1 billion ($136.3 million). The company's operating loss more than tripled, going from ¥349 million ($4.3 million) to ¥1.1 billion ($13.6 million).
The company's game division was the biggest money loser, reporting a loss of ¥1.6 billion ($19.7 million). That loss took away profits made by the company's other sectors, including amusement facilities and merchandising. Company officials reportedly blamed the shortfall on development costs for future titles and a delay of the action role-playing game Trinity: Souls of Zill O'll.
Tecmo Koei's sharp losses were almost overshadowed by some boardroom drama. Kenji Matsubara, the president and CEO of Tecmo Koei Holdings, announced at a board meeting that he is resigning for personal reasons. Matsubara is also stepping down as president and CEO of the Tecmo Koei Games label. He will reportedly be replaced in all four positions by Yoichi Erikawa, cofounder of Koei.