Making Konami great again!

[VideoGameAccountant]

archer9234 said:

VideoGameAccountant said:
In Konami's current state, the strategy of pushing mobile games may benefit them. The reason they made more money in 2016 is due to a higher gross margin. The low(er) cost of mobile games may allow them a foot holder to build capital and attract new talent. Current AAA is too risky with how high the cost of development is.

You make all valid points. But if they just keep doing mobile and machines only. Eventually that is what they will all be known for. Just like the kiddy image from Nintendo. It became a negative aspect of the company which persists till this day. it does hamper them in areas. Also, mobile is very volitile. Sooner or later they will run out of everything they can port and milk on there. Then end up like Zynga, where profits get stuck. Since they lost respect towards gamers and others. They don't have the other avenues anymore.

As the years go on. No one will want to give them a try. Like Guitar Hero and Rock Band. Especially if Kojima gets a strong footing with another company. Or his team alone. People will never look at them again. In the past it would of been easier. But with Social Media and Youtube personalites like Jim Stering making fun of them every time. The marketing job will be harder and harder.

I agree that Konami shouldn't make only mobile games. They did release Super Bomberman R and they have Metal Gear Survive (whatever that's worth). And I agree that mobile is an awfully volatile market. Most companies would be best served releasing some mobile games alongside their larger projects. Konami's problem is that they let go their last big talent. They can't take on large projects in their current state (given the investment and risk involved with modern game development). Smaller games and mobile games are a good way to rebuild the brand and attract talent. 

Something I should have mentioned in my last post because I know it will come up. Konami's biggest division is still games. Here is the segment information for FY2016 (in million yen)

 

• Digital Entertainment (video games) - 105,573
• Health and Fitness - 68,648
• Gaming and Systems (gambling) - 31,215
• Amusement (Pachinko/Arcade) - 25,342