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Is Konami in Trouble?

Carl Williams writes, "Recently Konami canceled Silent Hill, a title that has been a favorite amongst gamers since it's inception. This news has been met with a lot of disdain while Konami tries to restructure itself."

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DarkOcelet1315d ago

No, i think they are just being stupid. If its true they are concentrating on the gambling side then they are dumb.

magiciandude1315d ago

Dumb decisions are the beginning. Look at SEGA, Capcom, Square-Enix, Nintendo's once popular now dead Wii brand, etc.

deadpoolio3161315d ago

NO they aren't....In no way are they being dumb..They make boat loads from everything else they do, you people need to get the hell over it...They don't really make any profit from gaming....

MGS5 cost 60 million and will sell 7 million copies for a loss at best they might break even...

Dumb would be continuing to do something that really does not benefit the overall health of the company....

Why did silent hills get cancelled? They more than likely looked at the budget, Del Toro was going to be super expensive, Norman Reedus was going to be expensive and the game probably would have cost 60 million on top of all that plus advertising, for something that was probably going to sell less than 10 million copies...

You people that keep saying Konami are being dumb..For the love of god please go take some business classes before you actually speak or put uninformed opinions out there...In business the goal is to make money not fans, and when you aren't making money in certain divisions you stop spending money in those divisions period flat out plain and simple...Unless your retarded or uninformed like a lot of the people crying about Konami being dumb...Clearly if those people ran konami it would be ran into the ground

HiddenMission1315d ago

@deadpoolio316

Math isn't one of your strengths is it? $65 x 7,000,000 copies is $455,000,000...yeah not seeing the loss buddy lol.

Christopher1315d ago

@HiddenMission: If you think the full release amount is what they are going to make in profit, then you might want to hold off on the jabs at the math skills of others.

Typically, they make about $12 profit on a full release title. That's 12 x 7m = $84m and that's if they actually sold them all at full price and at release (hint: that's not going to happen). The reality is, the game will likely only see them coming up even or a very small profit. What would make them most of their money is any planned DLC that's likely already on disc. But, who knows what their plans are with that since the recent changes over there.

grayfox19851315d ago

@deadpoolio316
well you want to look at the main and general reason for any organization to go into business, yeah you're right its to make profit. But how do they make this profit? in business there are strategies with constants & variables .. some of the constants are push creativity & innovation (what kojima was doing) and invest to maintain consumer royalty (what konami isn't doing). Whether they are making their target profit or not in the videogame industry they still have a strong base, royal customers, good range of products and a very respected reputation (They're about to lose all that). The good business strategy was to have their most profitable portfolio (The star products & cash cows) fund to maintain and further improve their gaming division (problem child) because its not all lost.
Games like PES, spinoffs like Rising are cash cows and can be annual releases. Games like MGS & SH are system sellers and fan attraction. Trust me they are making the wrong decision here.. oh yeah i have a Master degree in business so i know what i'm talking about.

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PlayableGamez1315d ago

It all depends where Konami goes after MGSV. After cancelling SH, it's not really looking good for them.

Sir_Simba1315d ago

I dont think so, their level of care about the gaming industry just reached zero. Its taken years, but their finally here.

LifeInNZ1315d ago

I thought they were going to focus on the mobile gaming market...which according to analysts is where the big money is nowadays.

Summons751315d ago

I think they are preparing to bow out of gaming. Probably make one more MGS game without kojima to see how it fares (which it won't seeing fan reaction and see what they did to Castlevania and Silent Hill) and call it quits when it sells poorly trying to spin it as the industry dying.

PhoenixUp1315d ago

If they are then MGO3 won't last as long until it goes offline

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