Konami sees big increase in profit with their new direction

It looks like Konami’s new direction is paying off, at least for the company itself. Looking at the latest financial report from January 31st, Eurogamer notes that the business saw a big increase in profit of 70% (the nine months ending 31st December 2016 versus the same period in 2015). This is despite revenue being down 8.5%.

Konami has recently shifted its focus from big budget video games to smaller scale projects such as mobile phone games and the recently announced Bomberman R for Nintendo Switch. The company went through a major restructuring, which, together with Hideo Kojima and other key members leaving, resulted in both the Japanese division of Kojima Productions disbanding and the Los Angeles branch closing altogether, even though this studio was opened just a few years prior.

Metal Gear is mentioned two times in the report: once to mention the Snake Eater pachislot launched in Q3 of 2017, and once to list Metal Gear Survive in their 2017 pipeline.

One can’t help but wonder what the future of big budget games from Konami will hold in light of this. Konami owns some of the most beloved IPs in gaming, including Castlevania, Silent Hill and of course Metal Gear. Although the company itself has assured us there is a future in console games for them, reports like this don’t inspire much confidence, as the decisions they have been making, as lamented by gamers as they are, seem to have struck gold from a business perspective.

Source: Konami financial report, via Eurogamer

  • Eugene Voldo

    Jack pot!.. But yeah, it’s really disturbing in a way that company is doing fine without releasing AAA games. Hoping that it’s not the case and Konami secretly developing a new MG game right now.

    • Full Options

      Mobile target is sooo wider than AAA.. 🙁

  • Mr.Pony

    Konami seeing reactions to survive being like
    https://media.giphy.com/media/94EQmVHkveNck/giphy.gif

  • Full Options

    I believe their best bet would be to stay on both AAA and smaller casual / mobile stuff.
    If they totally give away AAA, they’ll loose control of a casual gaming audience that will sooner or later turn a little more HC, due to things like gaming comfort offered by AAA over smartphone games.
    I believe a lot of casual gamers turned HC thanks to this mobile gaming “gateway to games”, these past years..
    A lot of them simply discovered how cool were video games in general.

    • “If you’re only focussed on the profits immediately in front of you, the times will leave you behind. It becomes impossible to catch up again.” – Hideo Kojima

      • Full Options

        “In the near future, we’ll have games that don’t depend on any platform,”
        -Hideo Kojima

  • Harumph.

  • Full Options

    seem to have struck gold from a business perspective.

    If they show muscles with numbers and profits, then it would be also fair to add that this last couple of years, their food quality dropped from ★★★★★★Restaurant to lower than Taco Bell.. xD
    For sure, fast-foods generate more profit than tables of quality..

    But I am just like Code Talker and Miller… Not really at war regarding at least REAL fast-foods… ;D

  • I recommend watching this. This is behind the scenes with Hideo Kojima interview in Australia. A lot of interesting stuff about the game, his future and how promoting the KojiPro logo was actually a brilliant idea.
    Watch this and Enjoy.

  • NegaScott128

    It’s worth noting that they’re talking about profits, not sales. Sales actually went down, so the increase in profits must be due to lower spending. Presumably, the most expensive products they make would be big console games, and since their upcoming titles consist of:

    1. Annual sports game that can rely on a pre-existing base and pre-existing character models
    2. Zombie shooter that can rely on a pre-existing base and pre-existing character models and environments
    3. Fucking Bomberman

    I can see how they’d be spending less money.

    • Full Options

      I shared quite the same feeling..
      Is this profit partly include savings from the ecatomb of engineers, artists I saw on linkedin, fired from KP LA, with according infras / facilities ?

      Besides, another fact I noticed is that their comments praize only mobile, gym and coin-ops.. I mean no words about AAA that may have generated some substantial return on investments for the past fiscal year as well.
      It feels they are keen to prove they made the right choices, and it sounds suspect.

      We also struggle to find clear scores for mgsv, just like if a title with multiple awards, very high meta-scores, 10/10 critics, generated negative or zero…
      Why be so silent on this matter if they made the right choices ?

      • Eugene Voldo

        I believe the last time we heard about MGSV sales from Konami was at TPP launch in 2015 when they said about 5 million shipped copies. Sadly there was no update since then ;(

        • Full Options

          I believe a substantial number of copies were also sold not only at launch, but as well during the 2016 exercise, since most awards were received between launch and the end of 2015… There is also the Def Ex’s boost as well..

          • Yeah, last thing they announced is that the series total sales were at 49.6 million (end of June: http://www.metalgearinformer.com/?p=28267), so it could easily have surpassed 50 million by now. But this isn’t mentioned in the latest report. Maybe they’ll announce it at a later date.

          • Full Options

            I think TPP should at worst have reached 7-8 M according with the bribes of stats we had so far..
            And yeah, 50 M is a quite round and nice score to celebrate among the 30th anniversary, if they have nothing personal against such party-time… ;D

      • The series should be around 50 million sales now, hopefully they will report on that milestone.

        • Full Options

          Thx Nyxus… More and more curious about this score… ;D

  • Full Options

    Just in case… Did you guys checked this playlist ?? Boss has really crispy stuff to share about his methodology. Boss is likely in the 10 episodes, you may skip straight to Boss’s section of each :

  • In depth about Kojima’s new studio and Death Stranding. There is also a glimpse of his old office where he worked after he left Konami which is very interesting.
    BBC Radio 1.

    • Maybe they’ll do the performance capture elsewhere? VASG San Diego or something. You need a lot of expensive equipment for it.

      They also show the coffee shop were they first held job interviews (Kojima mentioned this in the latest HideoTube). https://uploads.disquscdn.com/images/c257670ca7164f55adb6102667521cc56589093e8f5512615ea186f3a7b69409.png

      • Full Options

        The set size may vary according with the nature of the movement acquisition.
        Is an animation only requires facial, or do we need to acquire the whole body’s movement ?…
        I did not realized they would also use facial percap at Sheffield…
        But the set where Mads is acquired is much tinier than the one used in California for Norman… But Mads is not moving and Norman is walking..

        • For cutscenes with P-Cap you need full motion tracking and acting + reshoots + special effects/CGI.
          There are a lot of complicated stuff going on.

          Kojima also makes Open World Game that is very cinematic. That is a huge pain. I think that 90% of the cutscenes will be in corridors, not in the open world environment where player can look at any direction.

          • Full Options

            The captors used with Mads were just for head movements and facial expressions percap. They just record head’s xyz rotation values with a gyroscope almost similar to ones in VR helmets.
            Here, Mads is not wearing the suit because they apparently just needed Mads’s head for this shot of the trailer.
            You may then use this equipment in a very small room then, because there is just the face’s camera. For the suit, they need a bit more meters around the actor for cameras.

          • But this is just a small glimpse of the Mads work. In the trailer he did something more than just “head movements”.
            We don’t know everything about the mo-cap data.
            I’m sure there was much more than just head movements they recorded. Maybe they already have something for a game. We don’t know really anything at this point.

          • Full Options

            Correct, hard to be categorical without more details.
            My take is that this photo of Mads with the green spots correspond only to the capture of the close-up shot with Mads smiling.
            Unless they used another session to capture him walking, or the arms / finger stuff, but still those movements seem not noisy enough to me to be “real”..
            For example, he walk very smoothly, like his arm, going slowly back under the riffle.. Looks slightly too fluid to me (but that just my impression).
            I suspect they even just used CG animation for those movements, but that stays pure speculation.

            What’s sure is that on this photo, he does not really look equiped for walking or other movements.
            But as you nailed it, we need more info. 😉

          • Full Options

            For example, pay a close attention at this exact moment the hand’s various translation directions. I smell clearly 2-3 keyframes here and rough / not even interpolated.
            As for if they are the result of the compression of a initially real mo-cap dataset probably…
            Although for sure it should be compressed to hell since it is 4K real-time…
            But those movement are after all not too complex so KP could have as well sort this out more “manually”..

            https://uploads.disquscdn.com/images/8de99c6322140b839cbe23f0612d4ff3ba26d3d213423031b626207831463370.jpg

      • yeah, but Kojima’s games are so cinematic that he have 5 hours of cutscenes at minimum for his games. Kojima wants to direct them by himself and going from Japan to San Diego all the time is a problem.

        For a basic movie in Hollywood in total you need Including ADR, reshoots, special effects, CGI (computer generated imagery), special shots needing to take place (the protagonists gains or loses a great deal of weight, certain seasons or events are depicted,etc) and the normal delays due to financing, illness or unforeseen problems: 12-18 months for 120 min or 200 min film.
        Games today are much more complicated with voice acting and Motion tracking.

    • Full Options

      😀 The HB-101 is a MSX(1), not MSX2, so technically this was not the first machine to run MG.. Not sure, but it feels like Boss precised it when asked for and they did not really translated that part..

      http://www.msxarchive.nl/pub/msx/photos/hardware/Sony_HB-101_10.JPG

  • AeroGre

    They ever gonna release a date and price for survive? Planning on buying it if its like 30 or less

    • They haven’t announced a release date yet other than that it’s coming this year. Price will likely be announced at the same time.

  • Biggy

    Great but what about us? They’ll just be alone with their money because I am not getting any games with them.

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close