Konami Struggles Through 2013

[The Wooster]

Konami Struggles Through 2013

Sales are down across the board, but Konami's Pachinko machine and videogame businesses have been hit the hardest.

Critically, it hasn't been a good year for Konami. The publisher has struggled to remain relevant in a world where several of its big franchises no longer possess the allure they once enjoyed. Pro Evolution Soccer 2013 did alright, as did Platinum Games' excellent Metal Gear Rising: Revengeance, despite having a title that makes editors wince. But neither game made a big enough dent in the company's shortfall - overall sales are down 15% (to around $2.27 billion) and profits have dropped by 42.8% to ¥13.2 billion ($130 million). Metal Gear Rising, Pro Evolution Soccer 2013 and Professional Baseball Spirits 2013 were all named solid contributors to the company's fourth quarter numbers.

While most of the blame falls to Konami's ailing pachinko and core gaming businesses, the publisher's mobile and social interests seem to have plateaued. In the last quarter, one million people signed up for Konami's social games service, a far sight from the eight million that joined in the quarter before it. Normally, Konami likes to crow about its social gaming numbers during investor meets, usually in very specific terms. This quarter, the company has described its social revenues as "stable." Stable, in this context, can probably safely be taken to mean, "not awesome."

How is Konami looking to fight this slump? With optimism, of course. The publisher predicts revenues will rise by nearly 3 percent during the next fiscal year, while net profits are expected to rise by 15%. The possible arrival of two games with "Metal Gear Solid" on the cover might just help there.

Source: Konami [http://www.gamesindustry.biz/articles/2013-05-09-konami-sales-down-15-percent-profits-nearly-halved]


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[DrunkOnEstus]

This is simple. Have a Japanese developer with a love for the franchise make a proper Silent Hill game. Do more with Castlevania, especially on handhelds where overhead is low and there's a rabid fanbase. Don't rely on the social/mobile market, those people move to fads and that money can't be relied on as being steady. We got a Zone of the Enders HD collection, so where's the third one on a next-gen engine? That would be badass. I heard that Ni no Kuni did quite well, how about using that Suikoden franchise that people pay 100+ on Ebay for? These people make the dumbest decisions, without even mentioning that Rock Revolution thing.

 

[Andy Shandy]

Give me a way to get the Twin Snakes, Konami, and I will be all over that. If you need to keep it Nintendo exclusive, I will gladly download it on the eShop.

 

[Irridium]

I think I know why Konami's losing money. Well, I know because of Jim Sterling.

http://www.escapistmagazine.com/videos/view/jimquisition/5524-Konami

Know shit they're not doing so hot.

 

[Colt47]

I only want one thing from Konami these days. A remake or sequel of this.

Ok, that was a lie, Metal Gear Solid V looks good and another Enders title wouldn't hurt. Point is, they have plenty of great IPs that they do nothing with.

I loved that game just for the fact we could suplex a bug man. Who doesn't want to suplex a bug man?!

 

[anthony87]

....There was a Pro Evo 2013?

 

[mrm5561]

This is simple. Have a Japanese developer with a love for the franchise make a proper Silent Hill game. Do more with Castlevania, especially on handhelds where overhead is low and there's a rabid fanbase. Don't rely on the social/mobile market, those people move to fads and that money can't be relied on as being steady. We got a Zone of the Enders HD collection, so where's the third one on a next-gen engine? That would be badass. I heard that Ni no Kuni did quite well, how about using that Suikoden franchise that people pay 100+ on Ebay for? These people make the dumbest decisions, without even mentioning that Rock Revolution thing.

how dare you use such sound and well thought out logic in a post about konami that is unheard of.
in all seriousness jim hit the nail on the head awhile back when he said the company probably wont survive. metal gear will forever be my favorite franchise and hopefully if/when they go under another company will pick it up and put it on the right track

 

[Sniper Team 4]

Make Suikoden VI. Not a handheld, not a spin off, not a sequel to a previous game (like that one that was a spin off of IV), but true Suikoden VI. There's still plenty of lore left to explore in that world. Out of the Twenty Seven True Runes, I think less than half of them have been named. And while I haven't touched a single one of the spin offs, I would instantly go buy that game. Of course, I don't know if that would be enough to save their company, but I would really like to see the series wrapped up (or at least the story behind who Jeane is) before Konami goes bye bye.

 

[Roxas1359]

Are any of the big Japanese publisher's doing well? because Konami, Capcom, Sega-Sammy and Square-enix are not.

Well most of those companies have just been making extremely stupid decisions as of late. Not the regular stupid, but the full-on moron stupid. Capcom cancels any game with Megaman it seems (still miffed about Legends 3); Square Enix has taken their time with Versus XIII and because of that KH 3 hasn't been made since Nomura is the one working on Versus XIII; finally Sega just makes bad decisions a lot, but the whole Alien Colonial Marines fiasco really kicked them in the figurative groin.

Really all developers are in this boat at this point and AAA gaming is suffering because of it. I remember seeing someone post about how new and innovative IP creators ask for money from a Kickstarter now instead of big name publishers backing them. The problem is that it seems many companies don't wanna take the chance on developing something different, and so they all try to mimic the formula that the COD games seem to have and when their games don't sell as well then they throw a hissy fit.

The way that Konami, and all the other companies, can fix this is simple. First, they need to start using some of their other IPs that appear to be collecting dust; they need to stop making unrealistic predictions on how your game will sell as much as a COD game in a month; finally they need stop trying to take every bit of money that is in their customers wallets so that they can play the full game they paid their money for, and this is because if you lose consumer support then you're in trouble.

And thus concludes my little rant. ^.^
But before I go, before Capcom gets my money ever again they must make Megaman Legends 3 and apologize for blaming the games cancellation on the fans. What, most companies wouldn't do what I listed that they could do, can't I make unrealistic predictions too? XD

 

[King Kazma]

So long as you boast on the black at the end of every quarter and don't fall massively short of predictions for the fiscal year than your not doing to bad. You just need to work on improving your base so you don't slip there. But they are down in sales near 43% and thats a massive issue. Panic mode. They really need to rethink some things for their business strategy and come out with something big to turn things around in 2-3 quarters or they're really gona be hurting.

 

[Ryan Hughes]

Are any of the big Japanese publisher's doing well? because Konami, Capcom, Sega-Sammy and Square-enix are not.

No. But on the other hand, EA and Ubisoft are not doing too well either. The only major publisher actually doing well in earnings is Activision, but that company is still 60% owned by Vivendi, a company that could enter bankruptcy at any time now, and be forced to sell all those shares on the open market.

Also, what Konami needs is clear: Suikoden VI. Maybe it won't outsell Skyrim, but it would serve to revitalize the under-served story-focused RPG market.

 

[ron1n]

The problems Japanese developers/publishers are going through have less to do with the games and more to do with the gambling software/hardware.

Would wager the majority of their shortfall has been the pachinko sector, as that would be their biggest and most consistent earner. Sega is just as heavily invested in the gambling scene too.

 

[synobal]

It is pretty simple really, they need to revive either an old IP or find a completely new IP. Something that it can market world wide as well.

 

[Strazdas]

You kill all your best selling IPs (as in make the sequals so shitty noone will buy the next thing), make no new IPs and then want to be on top?

 

[Callate]

Maybe I'm missing some numbers, but... doesn't that article say Konami's profits are down, rather than "Konami is losing money?"

...And, um, isn't making less profits still a heckuva lot better than how any number of other video game makers who have warranted finance-related headlines are doing? I mean, when we're looking at Square-Enix, or EA, we're not talking about "lower profits" or "declining revenues"; we're talking about losses, as in "the things this company is doing are costing more than what the company has brought in this year."

Please, tell me if I'm missing something.

 

[Terramax]

They're not investing enough in new IPs. You can't rely on renowned franchises forever. Unless you're Nintendo.

Not even a new Silent Hill by Team Silent would do that well in this day and age.