Konami FY2013 Report Released

Pro Evolution Soccer game

Konami have released details of their financial performance over the fiscal year ending in March 2013, and it makes for underwhelming reading.

Konami’s revenue for the year came in at ¥226 billion, almost 15% down from last years ¥266 billion. Net income for the Japanese company fell by around 42% from ¥23 billion to just under ¥13.2 billion. Every sector of Konami’s business has seen some shrinkage but their pachinko division has suffered more than most, with a massive 70% reduction in income, possibly reflecting the impact that mobile gaming is having on the modern entertainment industry.

While the Digital Entertainment division saw a year on year loss 17%, Konami were still pleased with the solid sales performance of games such as Winning Eleven/Pro Evolution Soccer and Metal Gear Rising: Revengeance, as well as the fact that they have a combined 35 million “registered users across all content for social networks ”

Looking forward, Konami have said that they must diversify in order to meet the requirements of users in a market that is ever changing and splintering with the emergence of new devices and control schemes.

With the spread of smartphones and tablet PCs worldwide, the available means of providing game software
continue to diversify, and opportunities
to reach an even greater audience for game software are increasing. Against such a backdrop, our belief is that we can increase the number of “outlets” for the Konami Group’s game content by taking advantage of opportunities presented by the emergence of new devices and developing our business around game content. We intend to develop ways of playing games that match the characteristics of each device

Certainly it’s disconcerting that the groups profits have almost halved during the past financial year, but the company is still highly profitable with multiple titles from popular franchises due out in the next couple of years. While Konami might not be pulling up trees (financially speaking) they are operating a profitable business and have a good idea of where they need to be in the months and years ahead.

As a fan of the Metal Gear and Pro Evolution Soccer franchises i hope they can find some stability after they’re done with this tricky transitional period. It looks like time to get out of the pachinko business.


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