Konami projects 22.5% six-month sales slip

Japanese publisher anticipates earnings to fall to $1.63 billion in April-Sept. period due to back-loaded release schedule, tough comparison against MGS4.

Konami continues to feel the impact of 2008's success in 2009. Reporting on its first-quarter earnings in August, the publisher attributed the 94 percent plummet in profits in large part to the top-rated Metal Gear Solid 4, which lit up the sales charts upon its debut for the PlayStation 3 in June 2008. With Konami expected to report its six-month financial earnings later this week, the publisher has said that it again projects poor year-over-year comparisons.

Snake? Fix this.

For the April-September period, Konami said it expects revenues to come in at ¥113.9 billion ($1.26 billion). That figure represents a 22.5 percent drop from the same period in 2008, when MGS4 had lifted the publisher's revenues to ¥146.9 billion ($1.63 billion) for the six-month period. Konami is also forecasting that net income during the period took a nosedive, falling 81.6 percent to ¥2.2 billion ($24 million).

Despite the expected double-digit drop in revenue during the publisher's first six months, Konami still expects to see marginal sales growth during its current fiscal year. The publisher reiterated its previous forecast of ¥310 billion ($3.43 billion) for the 12-month period ending March 31, 2010, compared to the ¥309.7 billion ($3.43 billion) it brought in during its previous fiscal year. Konami anticipates a noticeable rise in net income, swelling to ¥16 billion ($176 million) from ¥10.8 billion ($120 million) last year.

Konami noted that the discrepancy is "mainly due to factors such as the fact that main titles released by our Digital Entertainment segment for the current fiscal year were not scheduled to be released until the second half of the year while in the same period last year major titles, in particular, Metal Gear Solid 4: Guns of the Patriots, had already been released."

91 Comments

  • insanitycheck10

    Posted Dec 2, 2009 4:00 pm PT

    nice story

  • thewall28

    Posted Nov 16, 2009 7:48 pm PT

    Well when you make a franchise as big as MGS go exclusive to the PS3, what do you expect? They should have went multi-platform if they were serious about making $. It's common sense. Sticking to one platform = lose potential gamers $. I have yet to buy a PS3, cuz I already have a 360 and am not buy it for one game! Thats stupid. And Ive played every metal gear game since Nintendo!

  • metalgear-solid

    Posted Nov 6, 2009 11:25 pm PT

    MGS4 is without Game of the Generation and one of the best of all time. Any respectful gamer should own MGS4 by now. And if you don't, it's about time you get it!

  • Shehryar_89

    Posted Nov 5, 2009 7:47 am PT

    Konami is a 3rd-party gaming company..it must developed both for PS3 and XBOX 360....utilizing both the hardwares to the fullest 100%...producing best of the best games by reaching the limits of PS3 and XBOX 360 offerings...take time...develop fantastic games on both consoles....revenue will ultimately and automatically rise...
    quality games on both the hardware = more profits and more revenue

  • ali-009

    Posted Nov 5, 2009 3:10 am PT

    not all the people followed the story,and the reason this game is awsome is for the story,but the graphics can be compared to uncharted 2,the multiplayer was awful,but the story will make you cry if you followed the full MGS story,and the final moments of the game were epic,but what is a must own is uncharted 2,i played MGS4,it should take 9.5 because the story was very hard to follow,but it is in awsome game,but you don't need it,if you were an MGS fan,well you got this one year ago,other than that you don't need MGS4.

  • funnysplay

    Posted Nov 4, 2009 11:30 am PT

    Hopefully ill get a PS3 one day.
    If it comes this game is the top on my list.

  • BoondockSaint66

    Posted Nov 4, 2009 10:34 am PT

    Yeah, it must be tough to follow up Snake. Just goes to show you that the old man has still got it

  • PixelAddict

    Posted Nov 4, 2009 8:47 am PT

    Konami used to be my game maker of choice back in the NES days. Blades of Steel, Castlevania, and Metal Gear 1 and 2 were the best games on that system.

    Somewhere along the way I drifted away from Konami. Maybe when Metal Gear got weird(er). I don't suppose they noticed I left, but maybe other gamers left them, too?

  • Midnightshade29

    Posted Nov 4, 2009 12:08 am PT

    Suikoden VI ps3 exclusive please!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    2.5D PSN Castlevania Symphony of the night Sequel
    Stop with the wii crap!!!!

  • mjk_1

    Posted Nov 3, 2009 11:10 pm PT

    Give us Suikoden VI

  • Pokedude1013

    Posted Nov 3, 2009 9:42 pm PT

    SNAKE!!!!
    FIX THIS

  • WTFitsPauL

    Posted Nov 3, 2009 2:55 pm PT

    No MGS, No Money

  • LosDaddie

    Posted Nov 3, 2009 1:25 pm PT

    Konami will be fine.

  • FF_fan2004

    Posted Nov 3, 2009 12:39 pm PT

    Love Konami for their Castlevania games personally, but as a 360 owner I do envy the PS3 owners for having some great game exclusives here. I do want to play MGS4, Unchartered etc, I'm still saving up for a PS3.

    What NuKku said makes sense though. And on another perspective, I think that they knew the kind of risk they would take to opt for a single plat rather than multiplat. So it might be expected to drop in their sales.

  • Gjinckxs85

    Posted Nov 3, 2009 12:24 pm PT

    Nevermind xbox vs. PS3 vs. PC. vs etc.. the point is, the US is in an economic failure. No one is spending money... on the same things. Video gaming, is a little less needed, arguably. It's sales will continue to fall for the next few years, at least. It'll take a long time to see figures get any better. But no worries. I'm pretty sure good games will continue to be released. (AKA FFXIII)

  • NuKkU

    Posted Nov 3, 2009 11:51 am PT

    @Salarian_Chemist: well of course any multiplatform game will make money its a fact but once again Sony probably paid millions to keep MGS4 a exclusive and another thing i know people hate this comment but MGS4 is not possible on the 360 the way that Kojima made it. It is possible but it would requires loads of compressing and would reduce the graphics and also make it go on several discs. If Kojima would have originally planned it to be multiplat then it would have been possible and would have looked the same and anything but since Kojima knew the capabilities and storage of the blu-ray disc he made it the way he wanted it to be not worrying a thing about storage

  • AlfaxD_Centauro

    Posted Nov 3, 2009 10:57 am PT

    @xbox360mslover

    About sales, both games MGS4 and Uncharted 2 (not to mention only possible on PS3) surpassed sales expectations.

  • phimseto

    Posted Nov 3, 2009 10:15 am PT

    That's what they get for not announcing Suikoden 6.

  • Sanjiro98

    Posted Nov 3, 2009 10:08 am PT

    I think that number is way too specific to be that good of an outlook. I think they r being nice on the economy with this estimation, could be worse later

  • thekey

    Posted Nov 3, 2009 10:05 am PT

    @Reuwsaat

    The reason being. Is because when a games go multi-platform they do not reach their full potential. Case in point. Tekken 6. Although it is an enjoyable game. It's graphics are frustratingly inferior to it's arcade counter part. Which runs on PS3 hardware.(System 357) The arcade version runs at a resolution native of 720p. (Which both the PS3 and 360 can display.) But for reasons beyound me they run native at 576p? Why is that? Because it was developed at the least comon dinominator, so that both systems could get it at the same time. Time is key, and when things go multi-platform something in some area gets rushed.(If the not the whole game.) Time gets shorter when you have to port it to 2-6 consoles.

  • Justforfun44

    Posted Nov 3, 2009 10:04 am PT

    Making MGS a Playstation exclusive was a great strategy last generation. MGS on Xbox 360 will outsell the PS3 version. Do the math.

  • MOBS

    Posted Nov 3, 2009 9:59 am PT

    If they added trophies for MGS4 , it would be for multiplayer only, as that's all people play of MGS4 now. Stop whining for trophies , earn the medals on MGS4 , if you can. At least I helped Konamis sales a bit this quarter, I bought the full game of Zombie Apocalypse. Great game, my girlfriend loves it. It's a little known gem on PSN and XBL, a top down Contra type game.

  • tarikm92f

    Posted Nov 3, 2009 9:10 am PT

    mgs should remain the playstation exclusive!

  • Reuwsaat

    Posted Nov 3, 2009 8:47 am PT

    I don't know why people care so much if the games are exclusives or not, my only concern is if it is a good game or not. In my opinion the more consoles the game is ported, the better, more people will be able to play the game with you, for example, Dragon Age: Origins, I use the PC as my console, my friend own an Xbox 360 and the other one own an PS3, all of us will be able to play the same game, and for normal people, play games with friends is good. Fanboys are not the same as gamers, gamers are people who play games for fun, fanboys don't care if the game's good or not, only who made the game, and defend the respective company, wich doesn't make any sense. For those fanboys: Try to think what will you earn defending a company, that doesn't give a crap to you? I think fanboys have no-life and have no friends, and beacuse of this they don't care about the others.

  • diabloakaSAHA

    Posted Nov 3, 2009 6:48 am PT

    So much for Kojima's loyalty to sony . PITY !!

  • TTDog

    Posted Nov 3, 2009 5:29 am PT

    Guess the big fat cheque from Sony for keeping MGS4 a PS3 exclusive doesn't count as sales then.

    Sony will deny it till they're blue in the face but to release your biggest franchise as an exclusive on the last place console is hardly great business sense, especially when there are other machines out there that could have ran the game perfectly well.

  • toyota22

    Posted Nov 3, 2009 5:24 am PT

    love snake, make another game

  • kamizuka

    Posted Nov 3, 2009 5:07 am PT

    just shows you why they are making a multiplat Semi-Snake game

  • ChidoriBoyU

    Posted Nov 3, 2009 4:40 am PT

    MGS4=best ps3 game till now CAN'T WAIT FOR RISING

  • Rikuide_Furame

    Posted Nov 3, 2009 3:40 am PT

    @ xbox360mslover:

    Aside from the fact that your point in simply incorrect, I cannot take seriously anyone who decided to brand themselves with a fanboy tag (i.e. your username).

    The problem is that too many of Konami's games still have difficulty suceeding in the US and Europe, no doubt due to localisation problems. Look at the most recent PES title - even if it the game's superior to FIFA or not, I doubt it would shift more units in the US.

  • fps_d0minat0r

    Posted Nov 3, 2009 2:30 am PT

    @ lionheart2255

    yh but by adding trophies it not gonna make the game worse is it?

    infact it will make you replay the game multiple times and master it while you achieve the trophies.

    WE WANT TROPHIES FOR MGS4!!!!

  • wahyudil

    Posted Nov 3, 2009 12:38 am PT

    I believed they should look the market that have more fan base .... xbox ... or maybe wii .... rather than ps3 only

  • SporkFireXPS

    Posted Nov 2, 2009 11:47 pm PT

    @xbox360mslover

    Both MGS4 and Uncharted 2 surpassed sales expectations.

  • ahpuck

    Posted Nov 2, 2009 11:32 pm PT

    here is an idea, it's about high time they release a nex-gen version of Contra. . just think about it. . borrow freely from Gears. . after all, contra was one of the first soldiers mowing down everything that moves games.

  • TheTHCGamer

    Posted Nov 2, 2009 10:28 pm PT

    well what is konami thinking they can release one or two major titles every other year? cmon when was the last time konami released an original title that was successful? all they depend on is there classic franchises that take forever to be released. how often is a metal gear or castlevania game released? all people think about when you bring up konami is metal gear and castlevania as of late. they havent released an original title thats worth buying in years. ZOE sounds cool but will it just end up being a bust like the original? i know i wont buy it cause i didnt think the first one had much to offer. i love metal gear and castevania still though konami needs to pull there S*** together because its there own fault sales are slipping. lets face it even the last couple castlevania games have even sucked compared to older titles. you cant just rely on two franchises especially when one of them (castlevania) has been crap lately. i remember when konami use to be a big name and a good company that released GOOD original titles.

  • xbox360mslover posted Nov 2, 2009 9:20 pm PT (does not meet display criteria. sign in to show)

    xbox360mslover

    Posted Nov 2, 2009 9:20 pm PT (hide)

    Konami and Hideo Kojima really lost a lot of money by keeping Metal Gear Solid 4:Guns of the Patriots a ps3 exclusive. MGS4 didn't meet the sales expectations of Konami and Hideo Kojima.
    They now know that 360 gamers are hardcore gamers who don't disappoint the xbox 360 games unlike the ps3 gamers.
    Every 360 game which has got positive reviews has met the maximum sales expectations. While the highly critically acclaimed ps3 games like Killzone 2, Uncharted 2, Resistance 2 don't even meet the minimum sales expectations.

  • akiwak

    Posted Nov 2, 2009 9:15 pm PT

    I see things turning around when they release Castlevania then they can follow it up with ZOE3

  • SalarianChemist

    Posted Nov 2, 2009 9:03 pm PT

    @NuKkU,

    I would like to clarify what I said about MGS4.

    I was not implying that Konami "lost money" on MGS4.

    What I was pointing out was that by releasing MGS4 only for the PS3, it stopped Konami from gaining a great deal of additional revenue from gamers who own a PC and/or Xbox 360.

    This is the main reason why we are now seeing the next Metal Gear Solid game being released for both the PS3 and the Xbox 360. When this game is released, Konami will make far more money from the upcoming MGS game than they made with MGS4.

  • SalarianChemist posted Nov 2, 2009 8:58 pm PT (does not meet display criteria. sign in to show)

    SalarianChemist

    Posted Nov 2, 2009 8:58 pm PT (hide)

    @phil- -meh,

    You are correct and I was incorrect about the identification of the upcoming MGS game.

    I often refer to the upcoming Metal Gear Solid game as part "5" when in fact it technically is not known as "5."

    I apologize for this mistake, and I will try not to let it happen in the future.

  • shanthjibu

    Posted Nov 2, 2009 8:35 pm PT

    Kojima has promised that Peace Walker ll be as awesome as MGS4.
    MGS rising is being made just to shut the xbots mouth down

  • meathead86

    Posted Nov 2, 2009 8:34 pm PT

    more silent hill please

  • omarsh94

    Posted Nov 2, 2009 8:13 pm PT

    Their profit will fall more because Fifa 10 destroyed PES hahaha

  • Night_dude

    Posted Nov 2, 2009 7:42 pm PT

    i hope they make MGS rising much better than MGS4 i just hope

  • phil-_-meh

    Posted Nov 2, 2009 7:03 pm PT

    I meant MGS: Peace Walker

  • phil-_-meh

    Posted Nov 2, 2009 7:02 pm PT

    @SalarianChemist
    MGS:R isn't MGS5, so far Kojima hasn't confirmed that as of this date, heck there isn't a 5 in that name
    MGSW is more likely to be MGS5 although it doesn't hold the 5 in it seriously - theres a 5 in its trailer
    - the story promises to be nothing short of Awesome, with it being a "true game in the MGS SAGA"
    - it continues to add to the "Stealth forumula" which Kojima has created throught the past MGS games, this time adding coop stealth

  • Ovirew

    Posted Nov 2, 2009 6:56 pm PT

    Konami made a game called Ephemeral Fantasia on the PS2 that I found to be pretty fun. The game got bad reviews, and was considered a pretty passable and generic RPG in the long run, but I thought it was original in comparison to a lot of crap that polluted the PS2 late in its life - like Shin Megami Tensei games. It would be neat if they tried to make a sequel for it with better production values.

  • joshboy101

    Posted Nov 2, 2009 6:55 pm PT

    It's amazing they are still doing this good. I only know Konami for suing a lot of company's because they (Konami) can't make decent games (MGS is the exception of course). They Sued Rock band and guitar hero for mimicking their rock revolution stuff( and for those of you not following reviews on gamespot, rock revolution got a 3.5 out of 10) .

  • SDBusDriver1979

    Posted Nov 2, 2009 6:37 pm PT

    Outside of Metal Gear, Konami hasn't done really anything of any importance. They've been doing nothing but crapping out Yu-Gi-Oh, DDRs, and more Karaoke Revolution games. Its no surprise that they are losing money. A new Castlevania revamp but that is until next year and for someone who said Metal Gear Solid 4 will be the last one, they sure are making alot of sequels. But hey Patrick Stewart is in the new Castlevania, I don't care.

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