Social Games Double Konami Profits

KonamiGamasutra reports that Konami’s after-tax first half performance in 2012 was more than double what it earned in the first half of 2011 with after tax income of ¥11.5 billion ($146.5 million USD) compared to ¥4.2 billion ($53.8  million) a year ago.

According to Konami’s second quarter financial report, the primary generator of all this cash was social gaming, with packaged retail games actually falling in revenue by nearly ¥10 billion ($128.1 million) despite being the biggest seller in the entertainment section of the company. This year, packaged retail only amassed ¥16.9 billion ($216.5 million) compared to social gaming’s ¥17 billion ($217.8 million).

The reason why Konami hasn’t been well known for social gaming in the west is due to their operating almost exclusively in Japan with Professional Baseball Dream Nine, Hisho Collection, and J. League Dream Eleven.

Konami’s biggest packaged seller is Pro Evolution Soccer 2012, which has sold nearly 3 million units on all systems combined, followed by Pro Yakyuu Baseball (known as MLB Power Pros in the US) with 970,000 copies. The Metal Gear series of games only sold a combined 340,000 units, but the North American release of the Metal Gear Solid HD Collection is still yet to happen.

Analysis: Social gaming! The scourge of the hardcore!

As long as Konami keeps the social games in Japan, I really don’t mind, but if stockholders are going to be stockholders, they’re going to demand social gaming expansion in North America to increase profits. It’s just the way they think.

As for the bad numbers concerning packaged retail sales, I wouldn’t put too much stock in it. The Metal Gear Solid HD Collection still hasn’t released and frankly, other than Pro Evolution Soccer 2012 (which I’m a big fan of) and the aforementioned HD collection, Konami don’t have many big titles this year, and that has contributed to the lower performance for the first half of 2011.

Games like Skullgirls, Silent Hill Downpour, New Loveplus Metal Gear Solid 3D, and Metal Gear Rising should balance the books for 2012.

Mohamed Al Saadoon

About Mohamed Al Saadoon