Konami just had their most profitable year ever
- Thread starter ggx2ac
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In your eagerness to correct another one of those nasty gamers who cares too much about games they...y'know...might like, instead of just talking about sales which don't affect anyone here (including you, unless you've got stock in them), you failed to realize that my post didn't imply Sega or Capcom was doing well at all. On the contrary, I was implying their failure in the mobile realm has seemingly pushed them back to consoles. And hopefully their game efforts ARE successful.
We are in threads talking about the finance lol. If u just wanted to talk about games, there is many other thread on that lol.
I am talking that both Sega and Cacpcom push into packaged game is also not doing really well there. And this time they dont have mobile game revenue to back them up so it would be better if they can quickly solve that issue as mobile market is not going to wait for them with how the cost for mobile game had been rising on a fast rate in all these recent years.
Good for them. It was really weird seeing Kojima being treated like a god and the only person holding Konami together.
How does that fit taking into account that his games were profitable?
I agree, it was wierd as hell hearing people constantly claiming that Konami was near bankruptcy when in reality they've been making more money than ever since Kojima left.
Guess reality beats YouTube stupidity again.
Because it is better to reinvest those money towards other area that is much more profitable than his games instead. Why earn $1 when you can earn $10?
Why do you want to invest around 80 million USD for seven years project with a high risk on whether the game can bring back the profit when,
You can just invest 20 million USD to open tons of health care or gym center which will bring more profit? Or invest 50 million USD for numerous mobile games which had higher earning ceiling vs what MGSV can bring?
But that are different matters. Of course there is much more profitable business than the AAA gaming segment. But how does Kojima drain money out of Konami when his games make profit in the end? That does not compute.
And I don't get that "globetrotting" sentiment. If it is project related travel, it is within the budget of the whole project and part of the plan. I don't think they paid for his out of development voyages.
What a depressing bit of news. I feel fucking guilty I just bought Metal Gear Rising on the Xbox store knowing it gave them money. I wish they would just license their IPs. Or sell them. Or something. Sitting on that mountain of legacies just to release themed slot machines and shit like MG Survive and phone Castlevania is depressing.
For example investing X million dollars per year, for X years straight, and then got them back with a laughable margin (= "profitable") maybe X years later?
I think games are not different than movies: if you invest 300M in a movie and you don't have a 300% profit you might not even break even, because of all the hidden costs such as promotions and inflation and stuff
Business don't work like that. Even if in the end, the product end up bringing profit. The time wasted on the project and the uncertainties of the investment future for such project is such a big risk that not all company can take especially a Jp company.
Lets just make some example then.
I can invest 80 Mil USD for a 7 year project or more which in the end can or can not bring profit for our company. The time factor, the opportunity cost, the financial burden, and the risk of the product flopping after such long time investment.
You can understand why even if one product end up being profitable, it can be a really undesired project right? And from what we also know, MGSV under Kojima if there is no interference by Konami at all, that 7 years can go even longer than that. It is not shocking for Konami to quickly cut lose the project and ship whatever product it had to make any kind of profit to take back that investment.
The thread's about finance but this thread is too full of people who seem to be overly happy about Konami no longer making console titles. Something something, proving gamers wrong or whatever. I'm not denying Konami's success, but I'm also not acting like this helps me in any way.
And Capcom's successes in the console realm is just getting started. MHW was a huge hit, they just need to keep it going. Same with Sega, who JUST started taking console gaming seriously again and are trying to bring back old IPs. We'll see.
Yes, games like powerful baseball and grimoire of souls, which apparently don't count cause they aren't AAA.
So both games are available WW, right?
And you played both, correct? Plus another question, If I'm a big fan of Castlevania SOTN, should I play Castlevania: Grimoire of Souls?
So if I want play good modern Konami's games you suggest me move to Japan. Ok, got it.
we do play games, there are Konami games released which matter to people other than ones made by kojima you know.
I'm actually happy he left Konami, he was literally beginning to bleed their games division dry with his demands and was starting to cause more problems than he was worth in the end for such a large company with other more viable and profitable options.
Only issue i have with his departure is the loss of P.T which is a huge shame.
I'd rather Konami take their time and start making a wide variety of console games again when they are ready, and kojima remains at sony who are willing and can afford his lavish production costs and hollywood lifestyle.
Everyone wins in the end.
Like games from Koji Igarashi, Yoshitaka Murayama, Team Silent, and basically disbanded Hudson Soft, right? :)
Do you realize how many good developers left Konami since 90s?
Oh please. Stop acting like a victim there. Konami thread is never once free of people coming to shit post about how much they would love to see Konami flopped as they kicked out Kojima the big diva. The fact that Konami actually did much better without Kojima does prove that gamers anger and hastag is wrong, it is just the fact. And in the world of finance, there is so much more way to make money than simply following Kojima there.
Cacpcom success in console realm is literally just MHW which is big hit. Their other products had all underperform. Unless, we see this E3 they are able to bring the big guns, i don't see much changing for them there.
As for Sega, i would argue they are even worst position right now as their packaged title had been lesser and lesser this past years while their big mobile hit which is Chain CHronicle and Hortensia Saga had been losing steams while they don't have any big mobile hit happening. Their diversification to Resort business in South Korea had also been facing huge financial lost as no profit had been coming from that part. It will be interesting to see what they can do to steer the wheel into a correct path again.
The world does not revolve around you guys lol. I can still love and hate Konami for what they have been producing. What i am seeing from some of you guys is even worst than some is praising Konami for their financial prowess and success.
Post like:
is example of extreme pettiness which hope for Konami to die or burn to ground when they have also been producing other products that is enjoyed by many others too.
yes lots', which is sad (especially team silent) but life moves on, and Konami are still making games and i'm sure they will continue to do so in the future. Good developers from all around the world come and go, it happens.
Just because they could afford to fund Kojima's wildest dreams, which if we are being honest in regards to metal gear solid were beginning to get a little out of hand, doesn't mean they should.
It was time for both parties to part ways, kojima can make whatever he wants with sony and konami can, maybe after a break, start to focus on other titles which don't have such insane production values and timeframes.
I'm not a huge fan of their japanese only titles either but that doesn't mean they should focus on games for western audiences too just because i want them to. Business is business at the end of the day and i'd rather see Konami not completely give up on the game industry just yet and instead focus on a variety of games developers rather than put so much attention on one man, who is just one person in a team of hundreds, products.
Sucks to see it laid out like that...
Console games will still exist as long as there are people to buy them, but it's dumb to pretend mobile and pachinko aren't lucrative.
Console games will still exist as long as there are people to buy them, but it's dumb to pretend mobile and pachinko aren't lucrative.
Please show me where that's happening because all I see is Konami abandoning their decades old fanbase for ALL THEIR Series and turning them into gambling machines / simulators.
Imagine if Death Stranding gets a sub 80 metacritic score and doesn't sell all that well and this thread gets bumped.
The salt would be insane
The salt would be insane
To be fair, it's not that different from what you posted in Capcom threads.
Maybe they are correctly waiting until all the unnecessary hated towards the entire company dies down a little. Kojima was one man, one great developer don't get me wrong, but he was not single handedly responsible for everything good that konami produced.
The hate they received when kojima left was so anger filled and of the moment that a sensible idea would be to wait until things have died down a little before heading down those avenues otherwise the reaction to anything you announce, and we saw it with bomber man for the switch, will be instant shouts of **** Konami, Burn down Konami, i hate Konami and i hope this fails.
Give it time.
I'm not even mentioning Kojima. I've never played one of his games. Konami has some the richest libraries in the medium.
What? I merely commented on the data.
Interrelated dynamics matter in business, short-sighted and/or context-lacking reads don't go anywhere pleasing... or not for long. I just meant that immediate effects are not the only effects decisions and modus operandi have.
However, I highly doubt that destroying your biggest IP and your reputation outside of Japan is not going to affect in the slightest your company's main source or revenue, which happens to be directly related to that. How big or small the effect is going to be remains to be seen, as well as its timing and Konami's way of addressing it.
Konami main source of revenue is mobile and those are exclusive to Japan, except Yu-gi-oh so not sure about that argument.
Because gamers have this obssession with everything being focused on them and can't accept when they're not the main target (even if in the console market they're already the minority). It's why mobile is viewed like that too.
You're seeing something wrong because they're turning it into mobile, not pachinko.
If for you games only counts if are made for consoles, maybe not. In my case, I do play but Konami never interested me. Even then, if my favorite publisher did it to survive as a company after years being fucked in this video game business and did a reorganization to focus less on the industry and do more games on mobile, I would be a bit sad for a time but I completely understand why that happened without any problem. It's the same thing here but proving that their decision was right considering what was happening in the company at time for their financials.
As if mobile wasn't mtx hell. Also, they already turned them into pachinko.
They turned, but Pachinko is something minimal and even then, those franchises are in there because it atracts older people that were interested in the franchise when younger and it's cheap. Pachinko isn't making those not exist, it's just that they abandoned for the video game market
I was referring to their Digital Entertainment pillar. But I didn't see data about how much of it comes from consoles/PC, so you are probably right.
30% or so would be significant enough, thou.
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Setting aside Konami's reputation for a minute, which is entirely deserved, people have to understand that AAA budgets are particularly enticing for many developers anymore. Metal Gear Solid 2 had an estimated budget of 10 million, Metal Gear Solid V cost over 80 million and sold about the same and that's considered to be on the "cheaper" end of AAA by today's standard. At a certain point the upper executives must have taken a look at the risk vs. reward and decided that AAA development was no longer worth it and went full in on mobile, trading card games, Pachinko, non-gaming services, etc. It's clearly worked for them. Pour one out for your favorite Konami franchise, they ain't coming back.
In this particular case Western gamers have literally no reason to care. These games aren't really present over here, or popular at all. This isn't FIFA or NBA, where the game sells blockbuster #s and it's just ERA geeks who don't care. This is legitimately a case where Konami said fuck off America. And if that sixteen percent is their entire business and not just gaming, then I'd bet a sizable portion of THAT is just Yu-Gi-Oh.
Funny thing is, Capcom did literally the opposite by betting big on MHW taking off in the west, which it did to great effect... and Konami still is out earning them pretty handily.
By their gaming division, the majority of it is mobile since they have only PES and other few titles in the console market.
That's actually funny when looking to the OP comparison.
FY3/2018 results
Konami
Digital Entertainment (Segment)
Revenue: ¥120,250 million (~$1.09 billion)
Segment Profit: ¥37,405 million (~$340.2 million)
Margin: 31.1%
Bandai Namco
Network Entertainment (Segment)
Net Sales: ¥326,537 million (~$2.97 billion)
Segment Profit: ¥50,150 million (~$456 million)
Operating Margin: 15.4%
Capcom
Digital Contents (Segment)
Net Sales: ¥74,141 million (~$674.2 million)
Operating Income: ¥19,103 million (~$173.7 million)
Operating Margin: 25.8%
Square Enix
Digital Entertainment (Segment)
Net Sales ¥191,469 million (~$1.75 billion)
Operating income ¥43,421 million (~$396.9 million)
Operating margin: 22.7%
Sega
Entertainment Contents (Segment)
Net Sales ¥209,563 million (~$1.915 billion)
Segment Income ¥14,841 million (~$135.65 million)
Margin: 7.1%
Please, get my words out of your mouth. I never wished for the hyperbolic nonsense you claimed.
Oh please. Many of Konami haters literally behind this page is not ashamed on immediately saying that Konami is evil lol. Like, now doing great in business is evil? Grown up guys, the world does not revolve on just you guys there.
How can Konami which actually diversify and being succesful on mobile, pachinko, Casino, and Life care industry is not doing it for long terms? It is literally what makes Konami bigger than even Cac.
Hell, Konami actually did the best thing to stop pursuing AAA game market there as not only it is costly and risky, it also wont bring as huge profit than any other project they can do with their money there.
And all those talk about destroying reputation. They dont care about their reputation to those so called hardcore gamers as they are not even such enticing audience to serve anymore. There is much more mouth watering audience to be served like Health care and Mobile gaming industries.
Lolol. If you dont have any argument left, you can just leave it there rather than keep digging lol.
Also, at least i am not like u who suddenly act so high and mighty that u need to ask whether people play games or not lol.
By the same measure, I don't think anyone outside American cares about NBA. (Or any of those American sports games, really.) The issue of regional markets is a complex one.
You pulled the wrong thing from that example lol. I'm just saying a lot of times ERA writes off a game that appeals to the demographic of "American gamer" just not their specific niche of character action/JRPGs lol.
Ok. I'll just show how salty you were and still is about Capcom:
ubidium said:
How ironic. Especially when you said here this:
Just replace in your sentence "Konami" with "Capcom".
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I can see Jim Sterling's next FucKonami News segment just being him staring at the camera, Konami's financials flash on the screen, and he just walks off cursing.
Konami may not make the sorts of games that they used to and are mobile first more than anything, but I doubt that this was the direction the company's biggest critics/Kojima's most loyal supporters expected things to go.
Konami may not make the sorts of games that they used to and are mobile first more than anything, but I doubt that this was the direction the company's biggest critics/Kojima's most loyal supporters expected things to go.
If I understand right, the NBA has a pretty sizable audience in China, but I have no idea how well NBA licensed games sell there (if they even get released in China at all).