Konami's gaming business continues slide

Metal Gear maker sees revenues down 10% as operating profit tanks 45%, soccer sales decline by more than a third

It will take more than a mini-Metal Gear to turn Konami's gaming fortunes around. The company reported results for the fiscal year ended March 31 today, and despite reporting "solid sales" of Metal Gear Solid V: Ground Zeroes, the company still saw its digital entertainment group revenues down 10 percent to 104.3 billion ($1.03 billion). Over the same period, operating incomes for the gaming business dropped 45 percent to 11.7 billion ($115 million).

Konami didn't point to any specific reason for the shortfall, but its supplemental materials showed a significant drop in unit sales for its soccer games. For the full fiscal year, Konami sold 3.89 million copies of soccer titles, down from 6.15 million the year before. Meanwhile, Metal Gear franchise sales edged up to 3.37 million units from 3.15 million, while the publisher's baseball games saw a bump from 860,000 copies sold to 970,000.

Across the entire company, which also runs fitness clubs and makes pachinko and slot machines, Konami posted revenues of 217.6 billion ($2.14 billion), down almost 4 percent year-over-year. Net income also declined, down 53 percent to 6.2 billion ($61 million). The company is projecting a slight rebound for the current fiscal year, with revenues projected to total 220 billion ($2.16 billion), and net income of 7 billion ($68.85 million).

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Latest comments (1)

Rick Lopez Illustrator, Graphic Designer 3 years ago
Well they arent producing much these days, and the games they do produce take ages to make. I think game companies should balance out, smaller games with larger AAA game projects. I wouldnt mind seeing a "Hardcorps Uprising 2" or a new side scrolling "Gradius HD". Use the smaller games to produce an income so the larger games can be produced. Larger AAA games should be made with trying to make a franchise... much like a TV show in which sequels would re use assts from the previouse games. You can take the city of GTAV and use it for a sequel. I see alot of areas that are closed off, buildings you cant enter. Those areas can be opened up in later games, more stuff can be added, gameplay mechanics could be added or improved and a totally differant story can be told. Cause by the looks of it we have to wait for MGSV in 2015.

Anyway, thats what i think.
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