• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Konami Set To Have Much Worse Financial Year Than Anticipated

RoboFu

One of the green rats
What kinda title is that? Much worse means they were thinking it was going to be bad to start with. That’s not the case.. it’s just not going to be as good as they predicted. Which happens all the time.

But anyway the proper title would have been “ not as good as predicted “
 

Needlecrash

Member

Konami has released a revised financial forecast for the financial year ending March 2023 to its shareholders. The document revealed that Konami expects to have an operating profit of just over half of what was originally forecasted.

Konami predicted in May 2022 that the company would have an operating profit of 76,500 billion yen ($600 million~) but has revised its forecast to say the company expects to now make 42,500 billion yen ($330 million~) in operating profit for the fiscal year. This is a 44.4% reduction in forecasted operating profit.

Konami did not provide robust reasoning for the reduction, simply saying it is due to “factors including revision of the profit plan for some titles in the Digital Entertainment business.”

The Japanese entertainment company has provided very sparse offerings this year. Konami’s biggest release this year was eFootball 2023, the rebranded Pro Evolution Soccer. The latest instalment of Konami’s football simulation game hasn’t experienced significant success. When compared to the game’s biggest competitor FIFA 23, it’s not much of a contest. If you compare the two games on their active player bases, FIFA has ten times more players than eFootball on Steam.

Koji Igarashi? Gone. Left to create ArtPlay.

Hideo Kojima? Gone. Founded Kojima Productions.

They won't touch or re-release their IP's (minus Contra/Castlevania collections via M2). The latest Contra game was pure shit. Winning Eleven/PES/eFootball series is dead. I don't know how you can make money if you don't have anything in the pipeline.

They got Silent Hill for a comeback but that's it. Maybe DDR.
 

Saber

Gold Member
Who would guess that your garbage cheap business strategy wouldn't give you money. Nobody saw this, absolutelly nobody.

Anyway, if you don't wanna make games at least leave the IPs for those who will.
 

GHound

Member
They had a good year FY'22 versus the several prior years and expected FY'23 to exceed that huh? Bamboozled, get back in your lane.
 
Last edited:

Tomi

Member
Start with remakes of mgs and you will have plenty of money

BUT dont mske crappy remakes because players will remember that
 

Drizzlehell

Banned
7j20N5.gif
 

StreetsofBeige

Gold Member
Konami, I really don't care about MGS, but would it kill you to sell Castlevania to someone that will actually use it?
I dont know how long or how much it would cost to make SOTN style games but with better 4k visuals, but they could probably sell a shitload of them at $29.99 across all platforms. If quality random metroidvania indie games can sell millions of copies, a Castlevania game should too.

Then again, its not the kind of game that is MP or GAAS so it'll be at the bottom of the priority list.
 
Last edited:

Skifi28

Member
They should sell all their IPs for next to nothing so that other companies can resell them and profit.


Where have I heard of this before....?
 
There are a few companies in really bad shape and Konami is one of them.

Silent Hill 2 was announced because they're recently panicking.

In 2021 we first got wind of them licensing out their IP. In March 2022, we heard Sony might be involved and so far they are to a degree of at least Silent Hill 2 being a console exclusive.

The Metal Gear movie is in production hell. There was no transmedia tie in for Castlevania while other companies saw great benefit from transmedia, Konami saw nothing.

They also announced a remake of Suikoden... basically they're out of ideas and they're out of people to really make games.

Konami, Ubi Soft... this companies won't be around much longer as we know them at current rates.
 
Last edited:

Ansphn

Member
I'm surprised they are still in business. How do they even make money? They haven't released a game since MGS.
 

Killer8

Member
The reduced profits are probably exactly because they ramped videogame production back up. It takes years to realize revenue from such projects but expenses are immediate.

I would expect more collections like Suikoden to pop up in the coming years. And a new Metal Gear is a given.

The only sensible post in this thread. Konami have been rolling in profits for years with supposedly "no games".

fEy0BBh.jpg


Everyone likes to doom post about Konami but they literally just had their most profitable year ever thanks to Yu-Gi-Oh! Master Duel. The fact is that they have been very profitable making F2P games that basically print money. PES/eFootball may not be what it used to be, but Konami are still raking in a ton of cash with eBaseball. They also make various amusement games (casino, pachinko etc), and even run sports clubs (ie. gyms).

The narrative is always that "Konami must just hate money". The truth, if anything, is that they love making money too much. AAA console development is a lengthy process and very expensive - from a business standpoint, why do that when you can rake in just as much money with a free mobile game on a shoestring budget? Now that Konami are starting to show interest in ramping up traditional console development again, the consequence is of course that they're going to have to spend money making the damn games.

It's also hilarious how the gaming world still has a hate-boner for Konami after what they did to Kojima (his desk was moved, oh no!) - even though he spent like a sailor while he was VP of the company. MGSV cost $80 million and wasn't even finished. Consecutive years of profit followed on from him being fired from the company. Obviously, as a gamer, it's regrettable to see so many classic IP go under-utilized, but I won't pretend that Kojima dindu nuffin', and that Konami didn't have their reasons for changing business direction in the last several years.
 

StreetsofBeige

Gold Member
The only sensible post in this thread. Konami have been rolling in profits for years with supposedly "no games".

fEy0BBh.jpg


Everyone likes to doom post about Konami but they literally just had their most profitable year ever thanks to Yu-Gi-Oh! Master Duel. The fact is that they have been very profitable making F2P games that basically print money. PES/eFootball may not be what it used to be, but Konami are still raking in a ton of cash with eBaseball. They also make various amusement games (casino, pachinko etc), and even run sports clubs (ie. gyms).

The narrative is always that "Konami must just hate money". The truth, if anything, is that they love making money too much. AAA console development is a lengthy process and very expensive - from a business standpoint, why do that when you can rake in just as much money with a free mobile game on a shoestring budget? Now that Konami are starting to show interest in ramping up traditional console development again, the consequence is of course that they're going to have to spend money making the damn games.

It's also hilarious how the gaming world still has a hate-boner for Konami after what they did to Kojima (his desk was moved, oh no!) - even though he spent like a sailor while he was VP of the company. MGSV cost $80 million and wasn't even finished. Consecutive years of profit followed on from him being fired from the company. Obviously, as a gamer, it's regrettable to see so many classic IP go under-utilized, but I won't pretend that Kojima dindu nuffin', and that Konami didn't have their reasons for changing business direction in the last several years.
I think it's fair gamers hate Konami. Why would any long time gamer who grew up playing awesome 80s and 90s games enjoy seeing them transform into GAAS and pachinko and casino businesses?

It'd be like BMW changing course and making entry level cars to go toe to toe with Honda Civics and doing great. It might be a great business switcheroo, but to the detriment of legacy BMW fans who want higher end cars like they did in the past.
 

SHA

Member
Silent Hill should be supported for the least cause it helps especially at its early lifespan.
 

SHA

Member
I think they refused to sell their other ips , tough decisions should be made even accepting all what's happening.
 

BootsLoader

Banned
People are thirsty for an MGS remake. Be it MGS or MGS 3. I‘m sure that if I know that, Konami also knows that. What I don’t understand is why Konami is not giving the people what they want. A good remake will do wonders.
 
People are thirsty for an MGS remake. Be it MGS or MGS 3. I‘m sure that if I know that, Konami also knows that. What I don’t understand is why Konami is not giving the people what they want. A good remake will do wonders.

They don't have the internal development team to make it anymore.

As a result, they need to find an external partner and even then the cost is high. That's likely where Sony gets involved as they did with Silent Hill 2 and basically says, yes, we'll help fund this if it is exclusive on PS5.

But then you have to negotiate how much help with funding and how long it will be exclusive. All of this before the game even goes into development most likely.

And you still have to find the right studio to do it. The obvious answer might be Bluepoint, but what does their bandwidth look like?

It's not as easy as, "People are thirsty for the remake, so let's make it"

Even more complicated is the movie they're trying to get made, which you'd like to come out around the same time as the game, and the movie isn't even in production yet.
 

hemo memo

Gold Member
Make a good PES game, you fucks
Easier said than done. FUT is gaining EA so much money that they could put so much into FIFA every year without and still profit high. PES has no chance unless Sony or Microsoft compete with their game.

It is ridiculous that no one is competing against EA in the football/soccer side.
 
Easier said than done. FUT is gaining EA so much money that they could put so much into FIFA every year without and still profit high. PES has no chance unless Sony or Microsoft compete with their game.

It is ridiculous that no one is competing against EA in the football/soccer side.
They really need to get out a Master League DLC to efootball this year. They are such a bunch of lazy fucks
 

Shane89

Member
That's what happen when you focus on PACHINKO sh!t and have brands like MGS, Castlevania and Silent Hill taking dust. Well deserved.

There is a reason if your name changed to PACHINKOnami
 

BootsLoader

Banned
They don't have the internal development team to make it anymore.

As a result, they need to find an external partner and even then the cost is high. That's likely where Sony gets involved as they did with Silent Hill 2 and basically says, yes, we'll help fund this if it is exclusive on PS5.

But then you have to negotiate how much help with funding and how long it will be exclusive. All of this before the game even goes into development most likely.

And you still have to find the right studio to do it. The obvious answer might be Bluepoint, but what does their bandwidth look like?

It's not as easy as, "People are thirsty for the remake, so let's make it"

Even more complicated is the movie they're trying to get made, which you'd like to come out around the same time as the game, and the movie isn't even in production yet.
I didn’t say that it’s easy and they can just do it. But also, when market wants, you give them what they want right? I mean, Sony is giving people the games they want. So they make money, right?
 
I didn’t say that it’s easy and they can just do it. But also, when market wants, you give them what they want right? I mean, Sony is giving people the games they want. So they make money, right?

You don't have to literally say that it's easy, but statements like "I mean Sony's giving people the games they want. So they make money, right."

Suggests that you think it's easy.

Sony's apparatus is literally two decades in the making and only recently has hit new levels of maturity that we haven't even seen the results of yet.
 

StreetsofBeige

Gold Member
I didn’t say that it’s easy and they can just do it. But also, when market wants, you give them what they want right? I mean, Sony is giving people the games they want. So they make money, right?
It's not that easy.

Sony only made big profits since around 2016-2017 when PS4 caught stride and the whole e-store, mtx and GAAS took off on consoles in full force. Sony's big increase in profits have come from e-store cuts.

Before that time period, Sony's game division for 20 years going back to PS1 made almost no profits in two decades.
 
Last edited:
Top Bottom