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KONAMI FY2015 Financial Reports: Net revenues increased thanks to Packinko

Steroyd

Member
Companies are trying to make money, not to make fan-boys happy. I don't get why people on this forum are pissed off about ?

Because there's several reasons to give Konami money but they seem to not only not want to take it, but piss on that money and set it on fire.
 

Servbot24

Banned
Because there's several reasons to give Konami money but they seem to not only not want to take it, but piss on that money and set it on fire.

Why are you so worried about how Konami wants to make money?

Companies want to focus on low risk, high reward. Video games are only occasionally high reward, and always high risk.
 
Why are you so worried about how Konami wants to make money?

Companies want to focus on low risk, high reward. Video games are only occasionally high reward, and always high risk.
Why should consumers care whether Konami as a company makes money or not? It's understandable that people who were fans of the IPs they own and sit on would be disappointed with their output (or lack thereof). That's more or less where people's loyalties begin and end, even if Konami's actions are entirely justified from a business perspective.
 

params7

Banned
Companies are trying to make money, not to make fan-boys happy. I don't get why people on this forum are pissed off about ?

Its that focus on profits which has killed channels of great artistic franchises, such as MGS. You are right though. The problem is not with Konami, they're just following the business agenda.

Capitalism killed MGS and Silent Hill?
 
Companies are trying to make money, not to make fan-boys happy. I don't get why people on this forum are pissed off about ?

Need I remind you, this IS a video game message board where a LOT of video game fans frequent. Not everybody is sympathetic to fat cat businessmen, nor are we all corporate stooges.
 

Servbot24

Banned
Why should consumers care whether Konami as a company makes money or not? It's understandable that people who were fans of the IPs they own and sit on would be disappointed with their output (or lack thereof). That's more or less where people's loyalties begin and end, even if Konami's actions are entirely justified from a business perspective.

Disappointment is understandable of course. Thinking Konami has become some evil entity is just silly though.
 

Jonnax

Member
Companies are trying to make money, not to make fan-boys happy. I don't get why people on this forum are pissed off about ?

I just feel the way they have gone about refocussing their business has been unprofessional and disgraceful. It's a discussion forum. Nobody is crying.

So the way I feel is if gambling became illegal around the world and their fitness clubs got out-competed by a park, I would be happy because of their financial losses. But again, my blood is not boiling.
 

Steroyd

Member
Why are you so worried about how Konami wants to make money?

Companies want to focus on low risk, high reward. Video games are only occasionally high reward, and always high risk.

Because they're sitting on franchises that people will pay money for, and they've been dickish about the gaming half of their business, they want to move to pachinko, fine, don't throw shit in my face while doing it.

They're high risk because publishers make them high risk, all pubs have to do is budget their shit within their means, Namco were happy with Dark Souls selling 2 million a game catered towards the fans and why they buy the game versus Dead Space that EA found it dissapointing that it didn't sell 5 million because they took cues from Gears and Uncharted.

Fucking "AAA" industry.
 

Kill3r7

Member
Because they're sitting on franchises that people will pay money for, and they've been dickish about the gaming half of their business, they want to move to pachinko, fine, don't throw shit in my face while doing it.

They're high risk because publishers make them high risk, all pubs have to do is budget their shit within their means, Namco were happy with Dark Souls selling 2 million a game catered towards the fans and why they buy the game versus Dead Space that EA found it dissapointing that it didn't sell 5 million because they took cues from Gears and Uncharted.

Fucking "AAA" industry.

It all depends on your outlook. At the end of the day every company has limited resources and some companies are happy making a bit of money (Namco) while others don't think it is worth the effort unless they are making hundreds of millions of dollars (EA). Gaming is too high risk low reward for many companies.
 

dark10x

Digital Foundry pixel pusher
Disappointment is understandable of course. Thinking Konami has become some evil entity is just silly though.
They way they've executed recent decisions certainly seem pretty rough. It seems vindictive. Sega is following a similar path but have gone about it very differently and the reaction is less negative.
 

Green Yoshi

Member
Companies are trying to make money, not to make fan-boys happy. I don't get why people on this forum are pissed off about ?

You make money by serving the needs of your customer segment. If you don't fulfill the customer need for a new Silent Hill that hurts your profitability. The strategy of Konami lacks continuity.
 
This is so depressing :( I mean I am glad that they earn money, but why cant video games be the driver of this?

Because they're not.

I ask again, what did everyone think the consequences of the market leaning harder and harder toward feast-or-famine sales would be? That Japanese third parties would just increase the budgets endlessly on everything to keep up and roll with the punches when their $50 million game sold 700k copies?

I think people are adopting a strange stance wherein we recognize all the problems but think the best solution is to just push forward until it somehow eventually gets better.
 
Companies are trying to make money, not to make fan-boys happy. I don't get why people on this forum are pissed off about ?

This is a videogame forum and the company in question owns some of gaming' all-time greatest IPs? Where the fuck do you think you're posting this question?
 

Haunted

Member
Because they're not.

I ask again, what did everyone think the consequences of the market leaning harder and harder toward feast-or-famine sales would be? That Japanese third parties would just increase the budgets endlessly on everything to keep up and roll with the punches when their $50 million game sold 700k copies?

I think people are adopting a strange stance wherein we recognize all the problems but think the best solution is to just push forward until it somehow eventually gets better.
Japan's console business is doing fine. In fact, you could make the argument that it's better than ever. Just look at the amazing lineup of Japanese big budget console games we're getting. There's Final Fantasy XV, and there's Metal Gear Solid V and The Last Guardian is surely still coming and there's PERSONA 5 AND IT'S ALL FINE IT'S GREAT SHUT UP ALBERTO IT'S BETTER THAN THE WEST



head-in-sand.jpg
 

dark10x

Digital Foundry pixel pusher
Because they're not.

I ask again, what did everyone think the consequences of the market leaning harder and harder toward feast-or-famine sales would be? That Japanese third parties would just increase the budgets endlessly on everything to keep up and roll with the punches when their $50 million game sold 700k copies?

I think people are adopting a strange stance wherein we recognize all the problems but think the best solution is to just push forward until it somehow eventually gets better.
Don't focus purely on AAA games? Konami has a huge selection of IPs that could be used for lower cost games that would very likely turn a profit. The demand for Konami games on the retro market is on par with Nintendo themselves. They could capitalize on that without breaking the bank.

Instead, in recent years, they attempted to make "AAA" games while cutting corners. They seem to think the brands alone can carry the sales but when you're choosing the wrong dev teams and limiting the budget to save money, you won't get the sales. The buyers aren't idiots. Get the right people making the right games for download services with more reasonable budgets and I bet things would look better.
 
They're high risk because publishers make them high risk, all pubs have to do is budget their shit within their means

Nintendo tried to offer a lifeline to companies to do just that in the Wii, and people hate them for it.

I mean, there's no word cloud functionality for GAF, but I would bet a word cloud search for Nintendo has "underpowered hardware" looming large near it
 
Don't focus purely on AAA games? Konami has a huge selection of IPs that could be used for lower cost games that would very likely turn a profit. The demand for Konami games on the retro market is on par with Nintendo themselves. They could capitalize on that without breaking the bank.

Instead, in recent years, they attempted to make "AAA" games while cutting corners. They seem to think the brands alone can carry the sales but when you're choosing the wrong dev teams and limiting the budget to save money, you won't get the sales. The buyers aren't idiots. Get the right people making the right games for download services with more reasonable budgets and I bet things would look better.

AA is dead. Anything below that has no worldwide market and finds modest success, at best.

What you're actually suggesting is leveraging IPs for low-risk, low-cost games on platforms that have worldwide appeal. Which, uh, seems to be the point of the mobile excursion.
 
Ugh. I don't care for any more Konami games really, but this probably means that MGO3 servers will shut down after a month of release. WOW
 

faridmon

Member
Companies are trying to make money, not to make fan-boys happy. I don't get why people on this forum are pissed off about ?

I have been saying this from day 1.

Konami must have realised that the investment put towards MGS games is not worth it, and may never see the profit as much as they hope.
 
Konami must have realised that the investment put towards MGS games is not worth it, and may never see the profit as much as they hope.

I think selling their vertical slice demo as a standalone product was probably the first indicator that they were extremely worried about the financials in retrospect.
 

Somnid

Member
You can argue, I think, that Konami is making the right moves in the short term. Console are down and gaming is somewhat of a tepid market so maybe don't focus all of your might there. But if you look at it from a long term health perspective, they're probably screwed.

- Losing a market isn't good, it's a collective failure and Konami is a contributor.
- Konami's execs chased off their most valuable talent
- Konami is sitting on a treasure trove of valuable IP, some which was recently acquired from Hudson but they are not utilizing it.
- Konami has created a lot of bad blood among consumers
- Konami is contracting their business scope
- Konami is leveraging lucrative gambling by trying to pump more out of fewer people, many of which are addicts.
- Konami has lost significant global relevance as Pachinko and their health clubs are mostly a Japan-only thing

All of this points to business contraction and bad management. They have some money but losing customers, employees and relevance is very unhealthy and limits future growth potential.
 
Konami has created a lot of bad blood among consumers

Consumers they're going to be no longer serving. So unless your cancelled you health club day, or your weekly pachinko because to stand with Kojima, the angry consumers (western console game players) aren't really a major concern - as they've shown with everything they've done recently.

Konami is contracting their business scope

The good way you say this is focusing. Not every company has to be Apple or Google.

Konami is leveraging lucrative gambling by trying to pump more out of fewer people, many of which are addicts.
If you have numbers for whether AAA game players in Japan, especially for Metal Gear, outnumber pachinko players, because pachinko places are everywhere, I'd love to see them. You're right, selling to addicts, also seems like a bad business move. Like tobacco. Or alcohol. Or casinos. Those guys aren't doing well, right?

- Konami has lost significant global relevance as Pachinko

There's a "global relevance" to pachinko? There's certainly a Japanese relevance.

their health clubs are mostly a Japan-only thing

It's too bad there are no Japanese companies making money in "Japan-only."

A lot of armchair MBAs are questioning a Japanese company focusing on the areas it's making money in Japan, because their businesses strategy is basically "if I'm not interested, how could they be making money?!?!11"

But if you look at it from a long term health perspective

This pun makes me think this was some kind of elaborate troll I missed, because I can't explain the rest of the comment in any other way.
 
Those two aren't mutually exclusive. Come on now.

kind of is, if they can't think of a way to leverage said fanboyism.

it's not as easy as "make a new contra/gradius/suikoden!"


they put their existence on the line with every mainline MGS and were not happy doing that anymore.
 

Somnid

Member
There's a "global relevance" to pachinko? There's certainly a Japanese relevance.

Right. It's a business with low growth potential. If that is the crux of your business then it's unlikely you are going to grow.

It's too bad there are no Japanese companies making money in "Japan-only."

A lot of armchair MBAs are questioning a Japanese company focusing on the areas it's making money in Japan, because their businesses strategy is basically "if I'm not interested, how could they be making money?!?!11"

I don't think you quite understood my argument. They can be profitable now but if you look at the overarching narrative they are propped up by businesses that have less growth potential, and when you were global and now are doubling down in your home country while abandoning other territories to stay profitable, that's a very unhealthy sign. Healthy companies innovate and expand, they acquire talent and they have happy customers. Konami has none of those properties.
 
I don't think you quite understood my argument.

Yeah, that must be it. Stay classy.

They can be profitable now but if you look at the overarching narrative they are propped up by businesses that have less growth potential, and when you were global and now are doubling down in your home country while abandoning other territories to stay profitable, that's a very unhealthy sign. Healthy companies innovate and expand, they acquire talent and they have happy customers.

I don't think you understood mine. There's plenty of growth potential being Japan-only, especially if you abandon an area of focus which is one of your few global ones. It's not unhealthy, it's a shift in focus away from an overall declining market console gaming - which is a good strategy, viewed objectively.

You're writing as if there are no companies in Japan focused solely on Japanese consumers. You're suggesting that pachinko isn't an evergreen industry, much easier to make make money and retain customers. If this were Apple, abandoning iPhones for desktop PCs, maybe what you wrote made sense. But this is more like Apple getting out of the iPod market - leaving a declining market to focus on more profitable ones.

It's armchair MBA-ing at it's finest.
 

omonimo

Banned
Disappointment is understandable of course. Thinking Konami has become some evil entity is just silly though.
Not sure to understand... they have screwed the only person who doing something in the vg business and think they are morons it's just like to say they are the evil? Uh? I'm genuinely passionate to their IP and know they fired the only person capable to produce masterpiece give me the stomachache.
 
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