{"id":28556,"date":"2024-03-14T17:24:58","date_gmt":"2024-03-14T08:24:58","guid":{"rendered":"https:\/\/automaton-media.com\/en\/?p=28556"},"modified":"2024-03-14T17:25:00","modified_gmt":"2024-03-14T08:25:00","slug":"4-out-of-6-major-japanese-video-game-developers-see-decline-in-profits","status":"publish","type":"post","link":"https:\/\/automaton-media.com\/en\/news\/4-out-of-6-major-japanese-video-game-developers-see-decline-in-profits\/","title":{"rendered":"4 out of 6 major Japanese video game developers see decline in profits\u00a0"},"content":{"rendered":"\n

Four out of six of Japan\u2019s major video game companies have experienced declining profits in their game sectors in the past year, as reported by GameBiz<\/a>. The analysis is based on financial results published by Bandai Namco Entertainment, Sega, Koei Tecmo, Capcom, Konami and Square Enix for the first three quarters of FY 2023 (April to December 2023). <\/p>\n\n\n\n

Bandai Namco saw their operating income from their digital business sector fall by 96.5% to 1.6 billion yen, experiencing a dramatic decrease in profit. This is partially a reactionary drop caused by the hit past title Elden Ring, but it is also the result of  a new online game<\/a> falling short of expectations. Furthermore, the company reported that the cancellation of more than five new titles and other factors led to a loss of 21.0 billion yen. <\/p>\n\n\n\n

Sega Sammy posted a 58% decline in operating income from their entertainment sector. Despite a boost in sales coming from the acquisition of Rovio Entertainment, the company\u2019s new titles underperformed and were unable to make up for the decline in sales of existing titles. Sega has also decided to cancel the development of Hyenas and other unannounced titles.\u00a0<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Koei Tecmo saw operating income from their entertainment sector fall by 10.6% to 20 billion yen. Despite the release of Fate\/Samurai Remnant, their earnings were mainly driven by sales of past titles and mobile games. On the other hand, Koei Tecmo declared that they would be focusing on major titles, and they have Rise of the Ronin\u2019s launch slated for March 22, which is expected to influence profits. <\/p>\n\n\n\n

Square Enix likewise reported a drop in income, seeing a 20% decline in profits from their digital entertainment sector. Sales were boosted by the release of bigger titles such as Final Fantasy XVI, the Final Fantasy Pixel Remaster series, Dragon Quest Monsters: The Dark Prince and others, but MMO and mobile game-related sales dropped in comparison to the previous year, while advertising and development costs were more pronounced. <\/p>\n\n\n\n

The analysis by Gamebiz<\/a> also reports that the big guns were not the only ones affected \u2013 other Japanese video game-focused companies, such as Marvelous and Nippon Ichi Software, also saw losses.\u00a0<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

On the bright side, Capcom saw their game sector\u2019s profits grow by 37% to 47.3 billion yen. The biggest contributors to these figures were Street Fighter 6, which sold 2.98 million units, and sales of existing Monster Hunter titles (stimulated by the announcement of Monster Hunter Wilds). Sales of Resident Evil 4 also grew, and the company is getting ready to release the highly anticipated Dragon\u2019s Dogma 2 in the fourth quarter. Incidentally, Capcom recently announced<\/a> that they will be increasing their starting salaries for new graduates significantly, as well as giving raises and bonuses to existing employees. <\/p>\n\n\n\n

Konami Group Corporation reportedly saw profits of their digital entertainment sector soar by 49% to 55.9 billion yen. The company successfully launched the Japan-exclusive Momotaro Dentetsu World: Chikyuu wa Kibou de Mawatteru!\u00a0and Metal Gear Solid: Master Collection Vol.1, while their mainstay titles such as eFootball 2024 and Professional Baseball Spirits A remained strong.\u00a0<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

With the exception of Capcom and Konami, Japanese companies have seen their video game sectors diminish in profit in the past year, with main causes being underperformance of new titles and losses due to cancelled projects. The past year has seen the video game market in Japan \u201cnormalize,\u201d with demand coming down from the high it reached during the Covid crisis. This background, combined with worldwide economic conditions worsening, could be contributing factors to what developers are experiencing. <\/p>\n","protected":false},"excerpt":{"rendered":"

With the exception of Capcom and Konami, Japanese game companies have seen their profits decline in the past year.<\/p>\n","protected":false},"author":55,"featured_media":28561,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_gspb_post_css":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-28556","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"blocksy_meta":[],"yoast_head":"\n4 out of 6 major Japanese video game developers see decline in profits\u00a0 - AUTOMATON WEST<\/title>\n<meta name=\"description\" content=\"With the exception of Capcom and Konami, Japanese game companies have seen their profits decline in the past year.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/automaton-media.com\/en\/news\/4-out-of-6-major-japanese-video-game-developers-see-decline-in-profits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"4 out of 6 major Japanese video game developers see decline in profits\u00a0 - 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