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GungHo expects $1.2 billion revenue this fiscal year

$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.

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Latest comments (4)

Eric Boosman Creative Director, Dark Tonic2 years ago
My takeaway is that it costs $500 million to run Puzzle & Dragons for a year. That is a staggering number.
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Klaus Preisinger Freelance Writing 2 years ago
Technically it only says they are spending $500 million per year. Could be $1 for the game and $499999999 for a flying office building.
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Anthony Chan2 years ago
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 :)
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Klaus Preisinger Freelance Writing 2 years ago
@Anthony
http://investor.activision.com/

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