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Koei Tecmo
Koei Tecmo

+6.34%

Entertainment / Video games, amusement and anime

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Risks

1. Competition: As Koei Tecmo’s core products are video games, the industry is highly competitive with new competitors such as Epic Games and CyberStep emerging. Furthermore, the market is saturated with various forms of entertainment such as movies, television, music, etc., which may reduce the spending on video games.


2. Global Economy: Koei Tecmo is exposed to changes in the global economy, which can have a significant impact on the company’s performance and revenues.


3. Piracy: Piracy is a major risk to the video game industry and can severely impact Koei Tecmo’s revenues.


4. Technical Issues: The video game industry is extremely volatile and prone to technical issues due to a highly competitive market. Koei Tecmo may experience technical glitches in their games which could damage customer loyalty.


5. Regulation: As the video game industry is becoming increasingly regulated, Koei Tecmo must abide by laws and regulations or face potential penalties.


6. Litigation: Intellectual property rights and copyright issues are challenging to enforce, meaning Koei Tecmo is exposed to potential litigation.


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