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GungHo expects $1.2 billion revenue this fiscal year

GungHo expects $1.2 billion revenue this fiscal year

Tue 28 Jan 2014 9:18am GMT / 4:18am EST / 1:18am PST
PublishingDevelopment

$700 million profit for 12-month period ending this month

GungHo Entertainment expects to make $1.2 billion in revenue this fiscal year, which ends this month.

The Puzzle & Dragons developer also runs very lean, taking more than $700 million of its revenue as net profit. That's according to a CNN Fortune interview with CEO Kazuki Morishita, who attributes part of the company's success to his experience as a Manzai artist and stand-up comedian.

"I genuinely enjoy entertaining people - I get a thrill out of it," Morishita said. "Game companies should entertain their fans and users. It can never just be about the business-to-business aspects of the industry."

Morishita also confirmed that GungHo has around 10 games in varying stages of development, though he would not disclose any more details. The studio's last game was Puzzle & Dragons Z on the 3DS, its first boxed retail release and an immediate hit in Japan, selling more than 1.2 million units in its first month

Last year, SoftBank raised its holdings in GungHo Entertainment to a controlling stake of more than 58 per cent. Six months later, SoftBank acquired 51 per cent of Clash of Clans developer Supercell.

4 Comments

Eric Boosman Creative Director, Dark Tonic

14 7 0.5
My takeaway is that it costs $500 million to run Puzzle & Dragons for a year. That is a staggering number.

Posted:10 months ago

#1

Klaus Preisinger Freelance Writing

1,186 1,273 1.1
Technically it only says they are spending $500 million per year. Could be $1 for the game and $499999999 for a flying office building.

Posted:10 months ago

#2

Anthony Chan Analyst, CPPIB

103 99 1.0
I am not surprised about the $500 Million operational cost. Playing and loving P&D (or PAD lol), I really appreciate the updates and quality of the game. They are constantly releasing new content, and collaborations with other brands (latest Hello Kitty - Sanrio, HunterXHunter, Final Fantasy, Batman Arkham Origins, Ragnarok, etc). I wonder if these collaborations result in GungHo paying licensing fees, but if they do, that must contribute to it.

In addition, they do have versions available to EU, NA, and Asia, and it is localized in more than a dozen languages, with separate content release schedules.

Also remember this is the company's revenue and they did mention that 10 games are in the development pipeline, and P&D has now crossed to the arcade and Nintendo DS platform.

I would imagine GungHo's human resources is actually closing in on a mid-sized shop (as opposed to an indie) which more or less justifies the 1/2 a billion operational cost.

It also begs the question, how much does a conglomerate like Blizzard or Rockstar spend on operational expenses each yer :)

Posted:10 months ago

#3

Klaus Preisinger Freelance Writing

1,186 1,273 1.1
@Anthony
http://investor.activision.com/

knock yourself out, they are rather detailed in comparison, when it comes to listing costs across various product lines.

Posted:10 months ago

#4

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