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Konami just had their most profitable year ever for FY3/22. Operating Profit: ¥74.4B (+103.6%) Net Profit: ¥54.8B (+69.9%)

Kadokawa was a funny acquisition beg. Especially funny now that they are doubling down on gaming with From
This is why people on the internet tend to be the worst predictor of acquisitions. The constant begging for acquisitions for companies that are doing just fine only leads to disappointment. Konami and From are absolutely not going to sell in their current positions, but since people want it to happen they try to contrive it anyway. Momotaro has outsold every single Silent Hill game but some people still act like Sony buying Konami to bring back Silent Hill is somehow a reasonable business decision for either party.
 
This is why people on the internet tend to be the worst predictor of acquisitions. The constant begging for acquisitions for companies that are doing just fine only leads to disappointment. Konami and From are absolutely not going to sell in their current positions, but since people want it to happen they try to contrive it anyway. Momotaro has outsold every single Silent Hill game but some people still act like Sony buying Konami to bring back Silent Hill is somehow a reasonable business decision for either party.
It's extra amusing when you consider Sony just let go a good chunk of the original Team Silent too. A company that guts it's Japanese R&D, production and publishing groups probably isn't looking to just start up the same thing again by buying it.
 
Kadokawa was a funny acquisition beg. Especially funny now that they are doubling down on gaming with From

I highly doubt FROM will be making anime games. They've got their hands full with Armored Core and Elden Ring DLC/II. I also think there's still a possibility of Kadokawa selling them after looking at their financials.

Some napkin math (assume yen rate as 0.008):
One of the largest opening sales of all time, and certainly the biggest FROM is going to have for a long time, led to Kadokawa having $156M revenue for the year and $41.6M in profit. Its only a 17% increase in revenue and gaming is still <10% of their total.

That's the ceiling, and it doesn't strike to me as meaningful diversification. Seems like Namco got the lions share.
 
I highly doubt FROM will be making anime games.
… who was saying they will?
One of the largest opening sales of all time, and certainly the biggest FROM is going to have for a long time, led to Kadokawa having $156M revenue for the year and $41.6M in profit. Its only a 17% increase in revenue and gaming is still <10% of their total.

That's the ceiling, and it doesn't strike to me as meaningful diversification. Seems like Namco got the lions share.
Seems you missed this from the financial results at Kadokawa:
In the fiscal year ending March 31, 2023, sales related to overseas shipments from ELDEN RING is expected to contribute to results.
This indicates that earnings from overseas sales were deferred to a later date or not all of the 1st month’s earnings from overseas sales were calculated in time for the fiscal year.
 
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I'm not sure where anime games are mandated for FROM if they stay with Kadokawa. While Kadokawa is multimedia focused, they aren't going to stupidly force a pretty successful developer to adapt their properties when it will equally or more profitable to maintain their freedom. They aren't Square Enix. They got Spike Chunsoft for console anime games as well.
 
Despite the screeching from western gamers, it seems like dumping Kojima was the right call for Konami. SE recently made a similar move getting rid of their own money sink in Eidos/CD. Japanese 3rd parties cutting off the fat to increase profits.
 
This indicates that earnings from overseas sales were deferred to a later date or not all of the 1st month’s earnings from overseas sales were calculated in time for the fiscal year.

NB takes the lion shares of money overseas as they are the publisher. Kadokawa probably gets some royalties but its minor.

That line says overseas sales is going to help bring revenue next year. They emphasize overseas, because they do not expect much more from Japanese sales and they mention their big increase in revenue this FY is mainly due to JP performance.
 
NB takes the lion shares of money overseas as they are the publisher. Kadokawa probably gets some royalties but its minor.
And how can we say that it’s a minor amount if they’ve given indication that they haven’t even collected all their royalties yet?
 
I highly doubt FROM will be making anime games. They've got their hands full with Armored Core and Elden Ring DLC/II. I also think there's still a possibility of Kadokawa selling them after looking at their financials.

Some napkin math (assume yen rate as 0.008):
One of the largest opening sales of all time, and certainly the biggest FROM is going to have for a long time, led to Kadokawa having $156M revenue for the year and $41.6M in profit. Its only a 17% increase in revenue and gaming is still <10% of their total.

That's the ceiling, and it doesn't strike to me as meaningful diversification. Seems like Namco got the lions share.
https://twistedvoxel.com/kadokawa-internal-devs-games-anime-light-novels/
This is coming straight from the horse’s mouth on this.
 
NB takes the lion shares of money overseas as they are the publisher. Kadokawa probably gets some royalties but its minor.

That line says overseas sales is going to help bring revenue next year. They emphasize overseas, because they do not expect much more from Japanese sales and they mention their big increase in revenue this FY is mainly due to JP performance.


While it could indeed be the case, this information is unknownable unless you are directly handling the financial aspect of the partnership (dev-pub). It could be the typical pub-dev split (where pub takes all the risk and returns, and the dev takes a fixed paycheck) or some other arrangement. The latter is likely given From makes 10 million sellers and Bamco doesn't have a lot of that, and therefore Kadokawa can drive a harder deal since they have the power choose their publisher (Elden isn't part of Souls related deals previously).

Majority people who work on the game will never know the nature of the arrangement, this is purely only involving the financial and business side of the companies involved. So unless you are implying you are some kind of Bamco/Kadokawa finance division member or someone close to the deal negotiations, I would suggest you refrain from making definitive statements like this.

Especially since you have shown to be ill-informed about business aspects in previous threads.
 
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Now if they can just fix the Silent Hill collection & give Switch owners the Symphony collection that would be fun. Give me a Duelist of the Roses as well.
 
And to put the matter to bed and go back to the topic at hand, if Kadokawa was unhappy with their current arrangement in the slightest, they could have financed and published Elden Ring themselves, since they've had a Western game publishing business through Spike Chunsoft since 2017 (with only European and Australasian console publishing being out of their reach ATM) and them being the publisher for Elden Ring would be a significant boon to their Western publishing business.
 
This is why people on the internet tend to be the worst predictor of acquisitions. The constant begging for acquisitions for companies that are doing just fine only leads to disappointment. Konami and From are absolutely not going to sell in their current positions, but since people want it to happen they try to contrive it anyway. Momotaro has outsold every single Silent Hill game but some people still act like Sony buying Konami to bring back Silent Hill is somehow a reasonable business decision for either party.
Oh they'll sell. But only for a price that knocks the buyers valuation down - which means no one in their right mind would go for it.
 
And how can we say that it’s a minor amount if they’ve given indication that they haven’t even collected all their royalties yet?

You have misread the sentence:

"In the fiscal year ending March 31, 2023, sales related to overseas shipments from ELDEN RING is expected to contribute to results."

It says, next FY, overseas sales is going to give them some revenue.

"Domestic sales and some overseas sales contributed to net sales during FY2021"

ER overseas sales already contributed this year. They only get royalties, hence some. NB gets the lions share of revenue.

While it could indeed be the case, this information is unknownable unless you are directly handling the financial aspect of the partnership (dev-pub). It could be the typical pub-dev split (where pub takes all the risk and returns, and the dev takes a fixed paycheck) or some other arrangement. The latter is likely given From makes 10 million sellers and Bamco doesn't have a lot of that, and therefore Kadokawa can drive a harder deal since they have the power choose their publisher (Elden isn't part of Souls related deals previously).

Majority people who work on the game will never know the nature of the arrangement, this is purely only involving the financial and business side of the companies involved. So unless you are implying you are some kind of Bamco/Kadokawa finance division member or someone close to the deal negotiations, I would suggest you refrain from making definitive statements like this.

Especially since you have shown to be ill-informed about business aspects in previous threads.

We have the figures of total revenue and profit so we can determine who gets what percentage, as well as financial information from their FY reports. Its a simple calculation.

Namco Bandai made around ¥100.5B this FY from ER and Kadokawa made <¥19.5B. Kadokawa is getting an incredibly small amount to what is one of the biggest launches in gaming history.
 
Oh they'll sell. But only for a price that knocks the buyers valuation down - which means no one in their right mind would go for it.
Kadokawa made <$41M in profit for the year with Elden Ring's 13.4M sales.
Even with something like a 10x multiple, if Kadokawa sold FROM for $400M, thats the equivalent of 10 years of cash assuming 13.4M is sold every year (which will never happen).

FROM is not going to be sold for a lot simply because they don't make Kadokawa a lot of money. My range would be $300-400M, closer to $300M. That's a great price for one of the industry's leading devs capable of making AAA RPGs and capable of working on 2 games simultaneously.
 
You have misread the sentence:

"In the fiscal year ending March 31, 2023, sales related to overseas shipments from ELDEN RING is expected to contribute to results."

It says, next FY, overseas sales is going to give them some revenue.

"Domestic sales and some overseas sales contributed to net sales during FY2021"

ER overseas sales already contributed this year. They only get royalties, hence some. NB gets the lions share of revenue.
I've misread nothing. Seems you missed the word "some". Some of ER's overseas sales contributed, not all. If it were all of them, there would be no need for a qualifier there. And they're saying overseas sales will impact the next fiscal year, but it's not like ER stopped selling in Japan as of March 31st, so the qualifier on overseas sales alone presents a single conclusion that only puzzles out in one way.
FROM is not going to be sold for a lot simply because they don't make Kadokawa a lot of money.
They're not going to be sold at all.
Because again, Kadokawa acquired From at the beginning of their popularity with Dark Souls already in the can and knowingly bought them based on the value they generate under that agreement with Bandai Namco. And when the opportunity arose to change the plan and publish From's games overseas themselves, they opted to allow Bandai Namco to take on more of the financial risk and, as a result, get more of the financial reward, while taking a piece of the profit regardless.

This is not a Kadokawa-From thread. Please allow this to end with that.
 
You have misread the sentence:

"In the fiscal year ending March 31, 2023, sales related to overseas shipments from ELDEN RING is expected to contribute to results."

It says, next FY, overseas sales is going to give them some revenue.

"Domestic sales and some overseas sales contributed to net sales during FY2021"

ER overseas sales already contributed this year. They only get royalties, hence some. NB gets the lions share of revenue.

Once again, typical bad faith and wilful misrepresentation by you. What Kadokawa did say is

-Domestic sales and some overseas sales contributed to net sales during FY2021.
-In the fiscal year ending March 31, 2023, sales related to overseas shipments from ELDEN RING is expected to contribute to results.

The second part will not be mentioned if it isn't significant. The way they captured revenue for ER this is very likely because From (by extension Kadokawa) publishes ER in Japan, so Japanese sales is entirely theirs to capture in real time. You know this, yet you keep trying to say that Kadokawa as already capture all the revenue they can for ER. They specially tell investors to expect overseas Elden Ring sales to contribute next year because they believe it's significant, and there could be many reasons for that, none of which you will be privy to all this time.

Also, do not forgot that exported Japanese version copies (a very small segment) is technically Kadokawa sales, which is definitely included in "some overseas sales" and whatever partial royalties that Bamco might give from the period of 22 Feb and 31 Mar (big maybe, it all depends on the account practice in companies, which can vary alot, and the contract clause on the timing of royalty transfers...)

This ties neatly with the fact that Bamco publishes the game overseas and significant portion (or all) of revenue deal with Kadokawa they have will not kick in until the next financial year starts. This is why Kadokawa had to specifically and especially tell investors this, this is literally what Kadoakwa is saying with the second statement.

@Selling From
That said, given Bamco is the publisher of ER, it's kind if normal they take more returns given they funded the game. This results isn't indicative of any way that Kadokawa sees less "earning potential" or "strategic potential" from From. You are reversing the cause and effect here.

From doesn't make a ton of money for Kadokawa because it historically have relied on external publishers for overseas sales (and still do for ER), who demand their cut. Kadokawa did not break up this business practice (but they did move away from Bamco for Sekirou). Kadokawa can attempt to make capture money in the future by attempting to self-fund and self-publish From games. This is a possibility if they do want to change up the business model and take up more risk (and thus more rewards).

If Kadokawa is to sell, it will not be weighing From sales price from indices such gross revenue or P/L, but other intangible factors such as market potential and strategic interest for the group. Especially since From is a wholly owned subsidiary and is not exposed to market pricing mechanism, so the selling price is literally what Kadokawa demands. These factors can easily drive up the price significabtly, especially if Kadokawa sees From's importance.(The same reason for the "underpriced" SE CD/Eidos deal, where SE sees themselves as offloading a strategic liability).

We have the figures of total revenue and profit so we can determine who gets what percentage, as well as financial information from their FY reports. Its a simple calculation.

Namco Bandai made around ¥100.5B this FY from ER and Kadokawa made <¥19.5B. Kadokawa is getting an incredibly small amount to what is one of the biggest launches in gaming history.

Typical bad faith misdirection from you once again. Bandai Namco's digital segment business is significantly bigger than just Elden Ring. It's own returns attributed it's overperformance to strong performance for Elden Ring, Tales of Arise (perhaps by up to 1-1.5 million excess copies), repeat sales of catalogue titles (unknowable but huge segment) and new mobile games (again unknownable).

You cannot take you 100.5 billion yen figure (a figure you did napkin math on and on poor assumptions) and throw it around like it's some kind of gospel. Your assumption of all of the excess ER copies (8.4 million) from their expectation is responsible for the entirety of the overperformance from their revenue projections for FY2021-2022 (681 million yen), but that is simply not true given Bamco' own statement.

Once again, this raw revenue calculation has not yet included whatever cut they are to transfer to Kadokawa as part of whatever deal they had with From. There is no doubt that Bamco got a lions share of revenue and profit, but what you just described is the typical publisher-developer relationship. It is nothing especially notable and it has no real bearing on how important or not Kadokawa sees From going forward...which is you entire poorly conceived point.
 
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Konami finded a healthy path in the game bussiness. It's not the one that pleases the older fans, but bussiness wise is working well.

If they're smart they will increase their gains licencing classic IPs for others build games.
 
I hope Konami learns all of the right lessons from this financial report. They are actually making a lot of money in the console business, and they don't have to make big budget games to do it. I remember back in gen 5 when Nintendo and Sony were heavily pushing 3D games, Konami released some 2D games like Suikoden and Symphony of the Night. That is kind of the path I'd like to see them pursue in the future. They can make great games even if they don't have the highest budget. Momotaru is the proof that they can do it.
 
Momotaro was last year's fiscal report. It isn't contributing that much to profits. The bigger contributor (ignoring mobile exclusives) is probably Yu-Gi-Oh Master Duel. On the various app stores, it is performing strongly and while there are no hard numbers for the console versions, general reception has very strong
 
I hope Konami learns all of the right lessons from this financial report. They are actually making a lot of money in the console business, and they don't have to make big budget games to do it. I remember back in gen 5 when Nintendo and Sony were heavily pushing 3D games, Konami released some 2D games like Suikoden and Symphony of the Night. That is kind of the path I'd like to see them pursue in the future. They can make great games even if they don't have the highest budget. Momotaro is the proof that they can do it.
Hope it also teaches Konami not to release games when they're not ready, it damaged the launch of eFootball & was completely unnecessary. The company is in such a healthy financial position they can afford to give its developers all the resources & time they need to deliver.

Same with it over shipping for Power Pro Kun Pocket R, none of these had any major impact on its overall annual results. So they can easily take more calculated risks in its future line up.
 
Momotaro was last year's fiscal report. It isn't contributing that much to profits. The bigger contributor (ignoring mobile exclusives) is probably Yu-Gi-Oh Master Duel. On the various app stores, it is performing strongly and while there are no hard numbers for the console versions, general reception has very strong
Momotaro sold an additional 600K retail copies or so (not including digital sales) in this FY. With all its development and most of its marketing costs recovered in the prior fiscal year, I’d believe that it contributed to the YoY increase to profit in a very major way.
 
I hope Konami learns all of the right lessons from this financial report. They are actually making a lot of money in the console business, and they don't have to make big budget games to do it. I remember back in gen 5 when Nintendo and Sony were heavily pushing 3D games, Konami released some 2D games like Suikoden and Symphony of the Night. That is kind of the path I'd like to see them pursue in the future. They can make great games even if they don't have the highest budget. Momotaru is the proof that they can do it.
Going by recent rumors, they are working on a lot of big games like Silent Hill, MGS and a new Castlevania
 
Going by recent rumors, they are working on a lot of big games like Silent Hill, MGS and a new Castlevania
Well, that is better than nothing, but I worry about them making a game like MGS. They've obviously made big budget games like this before, and yet they are more profitable now than they've ever been. A 2D Castlevania is kind of the better approach for them I think, since this can also sell well and it doesn't have the financial risk of a AAA 3D game.
 
Well, that is better than nothing, but I worry about them making a game like MGS. They've obviously made big budget games like this before, and yet they are more profitable now than they've ever been. A 2D Castlevania is kind of the better approach for them I think, since this can also sell well and it doesn't have the financial risk of a AAA 3D game.
SH and MGS are both outsourced and it's a case of Konami licensing their IPs more than them making these games again, the rumors say that the only series that's being made in-house is Castlevania.
 
Can someone catch me up on the Castlevania rumor? Is it credible?

Silent Hill Remake - Bloober Team
Silent Hill New Episodes - Annapurna Interactive
Metal Gear Solid 3 Remake - Virtuos
Metal Gear Solid 1 and 2 Remaster - ???
 
Can someone catch me up on the Castlevania rumor? Is it credible?

The first of these titles will be a new Castlevania game, which sources described as a “reimagining” of the series currently in development internally at Konami in Japan, with support from local external studios.
 

The first of these titles will be a new Castlevania game, which sources described as a “reimagining” of the series currently in development internally at Konami in Japan, with support from local external studios.
Oh, wow, I've cited that article myself about MGS before. For whatever reason my brain blotted out the Castlevania portion. Thanks.
 
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