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Konami absorbing its studios

Konami Computer Entertainment Japan and three other Konami subsidiaries will be merging into their main branch.


TOKYO--While a lot of game publishers are splitting their operations into multiple subsidiaries, Konami is doing the exact opposite. The company announced today that effective April 1, 2005, its three development studio subsidiaries and Konami Online will be folded into its main branch for "efficiency" reasons.

The development studios that will get disbanded and absorbed into Konami are: Konami Computer Entertainment Studio, best known for its music games such as Beat Mania and Pop n' Music; Konami Computer Entertainment Japan, best known for its representative vice president Hideo Kojima and his best-selling Metal Gear Solid series; and Konami Computer Entertainment Tokyo, best known for the Suikoden series, Silent Hill series, Castlevania series, Winning Eleven series, and most recently, Rumble Roses.

Under the merger that's worth about $250 million, one share in Konami Computer Entertainment Studio will be swapped for 0.42 share of Konami; one share in Konami Computer Entertainment Japan will be swapped for 0.81 share of Konami; and one share in Konami Computer Entertainment Tokyo will be swapped for one share of Konami. No swapping will take place with Konami Online, as Konami owns all its shares.

Konami explains that merging all its operations into its main branch will make the company more efficient and will also speed up its decision-making process, because there will no longer be a need for communication between the different subsidiaries.

"After collating our developers and knowledge base that were decentralized into three subsidiaries, we will shift our business concentration towards the online market, which has a large growth potential," commented Konami in its press release.

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