NEWS

Konami Game Revenues Down 50 Per Cent

Tom Ivan's picture

By Tom Ivan

August 6, 2009

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Konami has reported a substantial year-over-year drop in revenues and operating income for the three months ended June 30, 2009.

During its first fiscal quarter, company-wide revenues declined 21 per cent to 51 billion yen ($535m/£315.5m), while operating income slid 91.4 per cent to one billion yen ($10.5m£6.2m).

In the firm’s digital entertainment sector, which comprises videogames, arcade machines, card games and online operations, net revenues fell 45.1 per cent to 24.6 billion yen ($258.6/£152.2), and operating income decreased 88.2 per cent to 1.5 billion yen ($15.8m/£9.3m).

Specifically, quarterly videogame revenues halved to 9.8 billion yen ($103m/£60.6m). The company sold 2.96 million videogame units during the period, with the lion’s share shifted in Japan (1.2 million) and Europe (1.16 million). Soccer games were the company’s most popular offering, notching 860,000 sales.

Wii games accounted for the majority of unit sales (28%), followed by PSP (20%), DS (19%), PS2 (15%), PS3 (13%), Xbox 360 (4%) and PC (1%).

“Net revenues and operating income are lower compared to the first quarter of the previous year which saw the release of highly popular title, Metal Gear Solid 4: Guns Of The Patriots, along with the effects of changes in the economic environment,” Konami said.

“As leading titles are scheduled to be launched in the second half of the year, we are in line with the financial guidance for this fiscal year.”

Upcoming Konami titles include Pro Evolution Soccer 2010, Silent Hill: Shattered Memories, and new entries in the Dance Dance Revolution and Karaoke Revolution franchises.