Konami Group

Basic Information

Stock Code
9766
Industry
Information and Communications
Category Detail
Content Production & Distribution
Prefecture
Tokyo
Establishment Year
March 1973
Listing Year
August 1987
Official Website
https://www.konami.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Koei Tecmo Holdings, Nihon Falcom, Nippon Ichi Software, Yukes, Tose, Sega Sammy Holdings, Bandai Namco HD, Nintendo, Square Enix Holdings, Capcom

Overview

Konami Group is a leading company in the information and communications industry founded in 1973, operating as a comprehensive amusement enterprise with diversified businesses including home and arcade games, health services, casino equipment, and more.

Current Situation

Konami Group achieved consolidated sales of 360.3 billion yen and operating profit of 80.2 billion yen in the fiscal year ending March 2024, expanding its business across diverse fields such as digital entertainment, amusement, and health services. Its core gaming business holds strengths in both domestic and international markets with home video game software and mobile games, featuring popular titles like the BEMANI series and Metal Gear Solid. The amusement business supports diversification with arcade game machines and medal games, while the health services business, including sports club operations, serves as a growth foundation. Konami is actively expanding overseas, establishing local subsidiaries in the US and other countries to strengthen its global competitiveness. In sustainability, it focuses on reducing environmental impact and promoting health, while proactively developing new businesses using advanced technologies. It transitioned to the Tokyo Stock Exchange Prime Market in 2022 and established a new development base in Osaka in 2023 to enhance its workforce. Konami Group aims to maintain global competitive advantage through diversified business expansion and technological innovation going forward.

Trivia

Interesting Facts

  • Konami has survived as a representative company in the home computer game market since the 1980s.
  • Metal Gear Solid is a pioneer of stealth games highly evaluated worldwide.
  • The BEMANI series is an important series that established the music game genre.
  • Konami products are licensed worldwide, boasting high global recognition.
  • Realizes online connectivity with its proprietary e-AMUSEMENT system.
  • Subsidiary Konami Sports operates multiple sports clubs in Japan.
  • Company name derives from the initials of the founders.
  • Introduced proprietary corporate identity in 1984 to strengthen branding.
  • Thorough IP management with strict handling of copyright infringement.
  • Famous for the hidden Konami Code command on game controllers.
  • Proprietary electronic money PASELI is widespread in the amusement sector.
  • Actively involved in launching the eSports market.
  • Internationally listed on the London Stock Exchange as well.
  • Opened a new studio in Osaka in 2023 to strengthen the Osaka area.
  • Group operates diverse sports school businesses.

Hidden Connections

  • Konami's representative IPs influence other companies' game titles and media.
  • Holds exclusive contract with Japan Baseball Organization for real-name usage in baseball games.
  • Seriously contributing to the development of Japan's eSports scene.
  • Founder Ugetsu family supports sports through public interest foundation.
  • Holds numerous patents influential in the gaming industry's technological competition.
  • Konami's game development technology influences game companies domestically and internationally.
  • Konami's brand is closely linked to Japanese youth culture.
  • Collaborates with various entertainment companies to expand the market.

Future Outlook

Growth Drivers

  • Expansion of global demand for games and entertainment
  • Further growth in eSports market and expansion of related services
  • Growth in sports and health businesses due to rising health consciousness
  • New content creation through digital technology innovation
  • Promotion of sustainability-compliant products and business strategies
  • Active market development and localization by overseas subsidiaries
  • Strengthening of IP portfolio and new licensing deployments
  • Competitive enhancement through ongoing AI and IoT technology adoption
  • Increased customer touchpoints through expansion of diverse sales channels
  • Business scale expansion through strategic M&A and partnerships
  • Diversification of revenue sources through new business development
  • Efficiency improvements through enhanced employee expertise and workstyle reforms

Strategic Goals

  • Achieve sales exceeding ¥500 billion and profit margin over 20%
  • Establish top position in domestic and international eSports-related businesses
  • Increase global business ratio to over 50%
  • Achieve 80% of product lineup with significant environmental impact reduction
  • Secure annual investment of ¥20 billion in new technologies and services
  • Complete corporate culture pursuing diversity and inclusion
  • Enhance brand value through strengthened customer engagement
  • Build strategic IP acquisition and global utilization framework
  • Promote sustainable social contribution programs in collaboration with local communities
  • Several-fold expansion of studios and R&D facilities along with talent strengthening

Business Segments

Game Software Development Support

Overview
Provides technology support tools and platforms for game development.
Competitiveness
Advanced game technology and extensive development expertise
Customers
  • Game development studios
  • Publishers
  • Software companies
Products
  • Game engine licenses
  • Development tools
  • Online game platforms

Amusement Machine Manufacturing

Overview
Manufactures, sells, and maintains machines for the amusement industry.
Competitiveness
Industry-leading technology and support system
Customers
  • Game center operators
  • Amusement facilities
  • Leisure facilities
Products
  • Arcade game machines
  • Medal game machines
  • Electronic money systems

Health Services Business

Overview
B2B business through provision of health promotion-related services.
Competitiveness
Nationwide network and highly specialized staff
Customers
  • Sports gym operators
  • Local governments
  • Corporate welfare facilities
Products
  • Sports club operation support
  • Health school programs
  • Sports equipment sales

Casino Machine Development and Sales

Overview
R&D and global sales of gaming machines.
Competitiveness
High product quality and industry experience
Customers
  • Casino operators
  • Resort facilities
  • Overseas gaming companies
Products
  • Casino slots
  • Gaming maintenance
  • Software development

Licensing and IP Utilization

Overview
Revenue generation business through IP rights management and utilization.
Competitiveness
Strong IP protection system and brand recognition
Customers
  • Content production companies
  • Broadcast stations
  • Game development companies
Products
  • Intellectual property licensing
  • Copyright management
  • Brand collaboration planning

eSports Facility Provision

Overview
B2B provision of facilities and services for eSports.
Competitiveness
State-of-the-art equipment and specialized staff
Customers
  • eSports event operators
  • Broadcast media
  • Educational institutions
Products
  • Studio operations
  • Video streaming services
  • Event planning support

Education and Training Business

Overview
Educational services supporting industry talent development.
Competitiveness
Instructors with extensive industry experience
Customers
  • Corporate training departments
  • School corporations
  • Specialized education institutions
Products
  • Game development training
  • Programming classes
  • Creative courses

Event Planning and Operation Support

Overview
Provides planning and operational support for various events.
Competitiveness
Abundant event operation know-how
Customers
  • Game event organizers
  • Corporate promotions
  • Media companies
Products
  • Event venue provision
  • Event planning and operations
  • Marketing collaboration

Software Development Support

Overview
Support business for software development using cutting-edge technologies.
Competitiveness
Extensive development track record and technical prowess
Customers
  • IT companies
  • Game development companies
  • AI technology companies
Products
  • Programming support tools
  • AI-utilizing software development
  • Data analysis services

Media Content Distribution

Overview
Business involving distribution and analysis of various media content.
Competitiveness
Advanced distribution technology and marketing capabilities
Customers
  • Video streaming services
  • Game streaming platforms
  • Advertising agencies
Products
  • Digital content distribution
  • Advertising distribution platforms
  • User behavior analysis

Sports Peripherals Provision

Overview
Sales and maintenance of sports equipment contributing to health promotion.
Competitiveness
Planning of high-function equipment and quality control
Customers
  • Sports clubs
  • School gymnasiums
  • Training centers
Products
  • Training equipment
  • Fitness gear
  • Monitoring systems

Casino Operation Support

Overview
Services supporting casino operation efficiency and safety management.
Competitiveness
Fusion of industry knowledge and IT technology
Customers
  • Casino owners
  • Resort hotels
  • Government-licensed organizations
Products
  • Operation management systems
  • Security software
  • Customer analysis tools

Competitive Advantage

Strengths

  • Revenue stability from diversified business portfolio
  • Robust intellectual property rights management system
  • Long-standing brand value and customer base
  • High technological capabilities and innovation drive
  • Extensive domestic and international sales channels
  • Market penetration power in overseas markets through global expansion
  • Business synergies with subsidiaries
  • Competitiveness across diverse entertainment sectors
  • Advanced eSports facility operation capabilities
  • Strong financial foundation and stable profit margins
  • Advanced product development capabilities specialized for the industry
  • Approach to diverse customer segments
  • Robust marketing strategies
  • Competitive defense through extensive patents and trademarks
  • Employee expertise and strong corporate culture

Competitive Advantages

  • High market share and brand recognition in both home and arcade gaming sectors
  • Strong fundraising capabilities as one of the first companies designated for the Tokyo Stock Exchange Prime Market
  • Strong resilience to market fluctuations due to diverse business fields
  • Unique content deployment utilizing a broad intellectual property portfolio
  • High defense against imitation and rights infringement through solid IP management
  • Provision of proprietary solutions like electronic money in amusement facilities
  • Business expansion through partnerships with major domestic and international companies
  • Competitive edge in eSports through adoption of latest technologies
  • Creation of new customer value by integrating digital content and real sports businesses
  • Powerful domestic network and regionally focused service deployment
  • High user engagement through long-term customer relationship management (CRM)
  • Strong risk management capabilities in IP-related litigation
  • Flexible market response enabled by diverse sales channels
  • Localization capabilities through local subsidiaries worldwide
  • Rational financial strategies supporting sustainable growth

Threats

  • Risk of profit margin decline due to intensifying competition in the gaming market
  • Potential delays in responding to new technologies and trends
  • Increasing litigation risks surrounding intellectual property rights
  • Business impacts from regulatory changes in overseas markets
  • Security issues and unauthorized use associated with digital distribution
  • Shrinkage of domestic market due to declining birthrate and aging population
  • Brand imitation and rights infringement by competitors
  • Business environment uncertainty from fluctuations in infectious diseases like COVID-19
  • Revenue instability due to exchange rate fluctuations
  • Challenges in securing and developing employees
  • Increasing investment burden accompanying pace of technological innovation
  • Management risks from macroeconomic uncertainty

Innovations

2023: Establishment of eSports Dedicated Studio

Overview
Opened the eSports dedicated facility 'esports Ginza Studio' in Chuo-ku, Tokyo.
Impact
Enhanced presence in the domestic eSports market

2023: Opening of Latest Development Base 'Konami Osaka Studio'

Overview
Established a centralized game development base in Umeda, Osaka, to strengthen production system.
Impact
Improved product development speed and creator training

2022: Construction Starts on Next-Generation R&D Base

Overview
Broke ground on 'Konami Creative Front Tokyo Bay,' a next-generation R&D base in the Ariake area.
Impact
Promotion of cutting-edge technology research and new business creation

2021: Strengthening Mobile Game Development Structure

Overview
Reinforced mobile game development team and promoted overseas expansion.
Impact
Increase in mobile game sales

2020: Promotion of IoT Integration in Amusement Machines

Overview
Introduced IoT technology into arcade game machines to expand services.
Impact
Improved operational efficiency and customer experience

2024: AI Utilization for Game Development Efficiency

Overview
Developing game production tools utilizing AI technology.
Impact
Contribution to shorter development periods and quality improvement

2023: Development of Next-Generation Card Game Platform Technology

Overview
Introduced new technology fusing digital and physical cards.
Impact
Acquisition of new customer segments and product differentiation

2022: Sustainability-Compliant Product Development

Overview
Initiated promotion of product design aimed at reducing environmental impact.
Impact
Improved corporate image and enhanced market competitiveness

Sustainability

  • Promotion of energy conservation to reduce environmental impact
  • Expansion of recycled material usage
  • Health promotion activities through collaboration with local communities
  • Employee work-life balance improvement programs
  • Sustainable product design and lifecycle management
  • Promotion of Green IT adoption
  • Social contribution activities utilizing eSports
  • Fostering corporate culture respecting diversity and inclusion
  • Talent development through partnerships with local educational institutions
  • Strengthening transparent governance
  • Regular issuance of CSR reports and expanded information disclosure
  • Corporate philanthropy activities