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Konami Announces Record Revenue for Q2, But Profit Drops Year-on-Year

While Konami's games keep making money, they've been less profitable than last year.

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onisama148d ago

Kojima is laughing right now

Sephiroushin148d ago

Why?!
Konami makes more money off pachinko than gaming, they could completely abandon gaming and they would be super okay, on may 2022 they announced they made more profit than ever (obviously from pachinko)

VenomUK148d ago

Just wait until the Metal Gear remakes start coming out.

CrimsonWing69148d ago (Edited 148d ago )

Yea, the whole Kojima bit is getting tiresome. Look, I like Kojima as much as any Kojima fan, but the man always went over budget and could not stick to deadlines. These cost companies a lot when you do that. MGS V was taking forever to come out, Konami had enough.

Their games weren’t selling enough to be profitable so they made the executive decision to double down on what brings in prophet. Does it suck for gamers? Sure. Is it a smart business move? Absolutely.

I’m just grateful they’re giving us some Silent Hill games finally… even if I trust the developers as far as I can throw them.

Abriael148d ago (Edited 148d ago )

I don't understand why people keep perpetuating the misconception that Konami makes most of its money from Pachinko and Pachislot.

That's absolutely false.

I suppose it comes from either misguided perception or business naming confusion.

Konami's video game business is the "Digital Entertainment" one.

The Pachinko/pachislot business is the "Gaming & Systems" one. This is a common naming convention in Japan, and other companies like Sega use it as well.

The Digital Entertainment business is about 10 times larger than the pachinko business. Pachinko is actually a small part of Konam's business. It's not even a distant second, as the sports facilities business is also bigger.

Sephiroushin147d ago (Edited 147d ago )

@Abriael
They make more profit from pachinko, profit and revenue are completely different things, granted they use their IP for those pachink but yea… Konami says so no me so yea

Abriael147d ago

Moving the goalposts?

Anyone who knows anything of economy knows that profit is only part of the picture. Revenue is what keeps companies running.

It is a fact that your statement is completely and objectively incorrect. If they abandoned gaming completely, they would be not ok at all, as they would literally drop two thirds of their business. That's a by the book definition of "not ok."

Sephiroushin146d ago

I am not moving anything, n4g is bad, I cant reply to you directly I have to reply to myself…

@Abriael
Evga dropped Nvidia GPUs and that was more than half of their revenues, the good joy of being a private held company!
I have a business of my own, not a business on the Entertainment industry or a billionaire business (i would not be here) but if something is not making me money I drop it even if sells well, I only have 2 products that don’t make me profit at all, the product is for kids so they bring me customers (adults) … it does it matter if you spend 100million and your revenue are 100million, if your business doesn’t make profit it needs to be restructured, if they drop gaming they can focus more on other things, its not smart to leave gaming but i stand to it, they can leave console and pc gaming and they would be okay after all it was kind of abandoned anyways; obviously they’re a public traded company they cant drop a whole division just because w/o taking measures before doing so else their stock would take a huge hit and may tank but with some restructuring they can kiss it good bye!

+ Show (3) more repliesLast reply 146d ago
anast148d ago

Gambling is good business.

Sephiroushin147d ago (Edited 147d ago )

Gambling is a heck of a business, why they are bringing gambling to every damn game?

some people still believe konami doesnt make more profit from pachinko than gaming (go see their consolidated financial reports) and just because gaming which now is basically cards and mobile now a days was higher due to covid so cute because they make a lot from mobile gaming but console was a complete disaster, Konami spend millions and millions on console games that take long to release just to make x2 profit from them sometimes their profit was just around 11%, now that DE division is focusing on card games sport games mobile and nostalgia, while trying to get back into console/pc business with SH, probably some MGS remakes and Castlevania to be announced soon (we gamers should thanks Covid for that else they would have casted gaming on a side and mobile)

No company put their “x10 best division” on a side and everybody knows they neglected console gaming for long while (because it was bringing them money but they were also spending way too much, until covid hit and their digital entertainment business was the one making them money while the sport and casinos divisions were basically completely shut down)… sports and gambling was getting them more profit % before covid though, and its probably getting them more % this fiscal year again but the cost of everything is increasing so their profit is decreasing…

I repeat they dont need consoles/pc and Kojima is not laughing either, Kojima has been wanting to leave MGS for awhile so he is probably happy about it and myn disappointing on his cancelled SH which would probably had been a lot better than the one we will get, we will never know though.