• Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
Oct 25, 2017
1,511
In the recently released Annual report for Capcom , Capcom had released an interesting table making a profitability comparison in the last Fiscal year ( Between April 2017 and March 2018 ) between " Big Five of Japanese 3rd party " Capcom , Square Enix , Sega, Konami and Namco Bandai and detailed it by ( Net Sales , Operating Margin and Game Business Margin )

CapcomannualP82.png


As we can see , in regard of Overall Net sales , then the order is the following

Bandai Namco - 678.312 Billion Yen
Sega - 323.664 Billion Yen
Square Enix - 250.394 Billion Yen
Konami - 239.497 Billion Yen
Capcom - 94.515 Billion Yen

However , in regarding of Game Business margin , then the order based of percentage is little changed

Konami - 31%
Capcom - 25.8%
Square - 22.7%
Bandai Namco - 15.3%
Sega - 10.3%

For the Record , Here is the order of each company's " Gaming " net sales at the end of Fiscal Year 2017-2018 , The definition of it may vary from company to company

Bamco - 298 Billion Yen ( Home Video Games + Mobile )
Square - 191.454 Billion Yen ( Home Video Games + Mobile )
Konami - 120.250 Billion Yen ( Video Games + Game Cards + Mobile )
Sega - 95.5 Billion Yen ( Home Video games + Mobile )
Capcom - 74.141 Billion Yen ( Home Video Games + Mobile )


Bamco " Home Video Game " Segment Net sales without mobile is 98.4 Billion Yen

Edit : A comparison between the 5 Companies regarding Free Cash Flow

Lo8NgIb.jpg
 
Last edited:

Tagg

Attempted to circumvent ban with an alt-account
Banned
Oct 25, 2017
2,717
I'm confused by the game business margin. What else does Square Enix do apart from games?
 

Ehoavash

One Winged Slayer
Member
Oct 28, 2017
7,232
Damn bamco makes that much money yet they can't invest in a single AAA game/ studio.

:[
 

P-Switch

Alt Account
Member
Jul 15, 2018
966
It's interesting to note these companies are increasing profit by producing and selling fewer console games.
 

Aters

Banned
Oct 26, 2017
7,948
With some calculation converting the percentage into numbers , then the order will be like this

Bamco - 103 Billion and 781 Million
Konami - 74 Billion and 483 Million
Square - 56 Billion and 839 Million
Sega - 33 Billion and 337 Million
Capcom - 24 Billion and 384 Million

Um, I don't think margin means what you think it means OP. This computation makes no sense.
 

Host Samurai

Member
Oct 27, 2017
12,150
Bamco has been the most consistent Japanese publisher since last generation. They never really went off that beaten path like Capcom, Konami and Sega. They've stuck to what works and it shows.
 

Mass Effect

One Winged Slayer
Member
Oct 31, 2017
16,718
As we can see , in regard of Overall Net sales , then the order is the following

Bandai Namco - 678 Billion and 312 Million Yen
Sega - 323 Billion and 664 Million Yen
Square Enix - 250 Billion and 394 Million Yen
Konami - 239 Billion and 497 Million Yen
Capcom - 94 Billion and 515 Million Yen

What are you doing here, OP?
 

Hexa

Saw the truth behind the copied door
Member
Oct 25, 2017
4,728
If the net sales is for their entire business and not just games as I think it is, then the calculation in OP isn't correct.
Also, don't all of them publicly disclose how much profit they made in different areas? Why is this calculation necessary?
 

IronicSonic

Attempted to circumvent ban with alt account
Banned
Oct 25, 2017
3,639
Is Sammy holding down Sega?

Great for scenario for Capcom though
 

Deleted member 5535

User requested account closure
Banned
Oct 25, 2017
13,656
I'm confused by the game business margin. What else does Square Enix do apart from games?

They have the Gangan magazines which they publish manga (Fullmetal Alchemist, Soul Eater, Kakegurui, Barakamon, etc), they fund the creation of anime of their manga (and games and other things), they have arcades and they also have toys and figures to sell as well.


Pachislot isn't counted on gaming. And they don't gain that much compared to gaming.

So Konami is getting game money without games?

The Power of Moblie?

Oooh, Yugioh!

Mobile and console.

Damn bamco makes that much money yet they can't invest in a single AAA game/ studio.

:[

Bandai Namco makes that much of money because they're much bigger than just a video game company, it's Bandai Namco Holdings in that case, so the entire company. Bandai Namco Entertainment is just one company of them. Counting all the companies, they're part of the music, anime, toys, advertisement and other industries. You can see all of their companies here:

https://www.bandainamco.co.jp/en/about/grouplink.html
 

Hailinel

Shamed a mod for a tag
Member
Oct 27, 2017
35,527
It's interesting to note these companies are increasing profit by producing and selling fewer console games.
Konami wasn't exactly wrong to make the shift they did. In Kojima's final years with the company, their gaming division's budget was defined by Kojima Productions spending tens of millions of dollars on games (or well, "a" game) that had to be blockbusters to succeed next to much smaller games that took a tiny fraction of the time and budget to develop but could conceivably make their money back without as much issue if they were successful.

I really, really want to know the full story of what the relationship between Konami and Kojima was toward the end, because I have a hard time believing that Kojima was in no way at fault for how things transpired.
 

Stardestroyer

Member
Oct 31, 2017
1,819
Konami wasn't exactly wrong to make the shift they did. In Kojima's final years with the company, their gaming division's budget was defined by Kojima Productions spending tens of millions of dollars on games (or well, "a" game) that had to be blockbusters to succeed next to much smaller games that took a tiny fraction of the time and budget to develop but could conceivably make their money back without as much issue if they were successful.

I really, really want to know the full story of what the relationship between Konami and Kojima was toward the end, because I have a hard time believing that Kojima was in no way at fault for how things transpired.
That's what people didn't understand Kojima was a huge money drain with board membership. He needed a lot of control Konami was unable to provide.

Konami is an ass for the method they fired him, but I figured it was like a relationship break up than a professional.
 

Pein

Member
Oct 25, 2017
8,214
NYC
Bamco has been the most consistent Japanese publisher since last generation. They never really went off that beaten path like Capcom, Konami and Sega. They've stuck to what works and it shows.
They tried though, they wanted enslaved to be an uncharted level IP. They also had that slaughter house and Afro samurai game with that new label.

Turns out sticking to naruto, tekken, DBZ and souls worked out way better for them and the western developed games.
 

Deleted member 5535

User requested account closure
Banned
Oct 25, 2017
13,656
Bamco has been the most consistent Japanese publisher since last generation. They never really went off that beaten path like Capcom, Konami and Sega. They've stuck to what works and it shows.

Most of their numbers are outside of the gaming industry. Counting only the gaming industry the scenario is pretty different and they're behind those companies you mentioned (except for Sega)

Looks like mobile and pachinko are too profitable. Konami is dead to me.

Pachinko isn't counted as gaming.

Is Sammy holding down Sega?

Great for scenario for Capcom though

If you're talking about gaming business, no. Sammy don't have anything on that front anymore. It's all on Sega.
 

Pein

Member
Oct 25, 2017
8,214
NYC
That's what people didn't understand Kojima was a huge money drain with board membership. He needed a lot of control Konami was unable to provide.

Konami is an ass for the method they fired him, but I figured it was like a relationship break up than a professional.
Well how many developers get that sorta budget these days? Western or Japanese, ken Levine?

They take years and bet the farm on a single game that needs to sell millions, Ken's studio was closed and reconstructed too even tho infinite sold millions.

It's why I think Kojima will stay at Sony, how many publishers would support that sorta development cycle?
 

P-Switch

Alt Account
Member
Jul 15, 2018
966
Konami wasn't exactly wrong to make the shift they did. In Kojima's final years with the company, their gaming division's budget was defined by Kojima Productions spending tens of millions of dollars on games (or well, "a" game) that had to be blockbusters to succeed next to much smaller games that took a tiny fraction of the time and budget to develop but could conceivably make their money back without as much issue if they were successful.

I really, really want to know the full story of what the relationship between Konami and Kojima was toward the end, because I have a hard time believing that Kojima was in no way at fault for how things transpired.

Oh yea Konami is a whole other deal, I just meant in general.

For example, Square Enix this last year had software sales down 32% but their profit was up 22%.

That's the power of reducing production costs and increasing mobile gaming revenue and post game launch transaction revenue (dlc, microtransactions, expansions, add-ons, etc)

Obviously it's not just Japanese companies, look at EA

Most videogame companies are increasing profits (surviving) by producing and selling significantly fewer console games.
 

Deleted member 5535

User requested account closure
Banned
Oct 25, 2017
13,656
Konami wasn't exactly wrong to make the shift they did. In Kojima's final years with the company, their gaming division's budget was defined by Kojima Productions spending tens of millions of dollars on games (or well, "a" game) that had to be blockbusters to succeed next to much smaller games that took a tiny fraction of the time and budget to develop but could conceivably make their money back without as much issue if they were successful.

I really, really want to know the full story of what the relationship between Konami and Kojima was toward the end, because I have a hard time believing that Kojima was in no way at fault for how things transpired.

This
 

ASaiyan

Member
Oct 25, 2017
7,228
Konami has the highest margins, eh. Can't really argue with their decisions from a business perspective.
 

Mass Effect

One Winged Slayer
Member
Oct 31, 2017
16,718
Confused it with Percentage of profit , It would be appreciated if you can do the math as i am not deep into this

Hard to say, but your formatting should be:

As we can see , in regard of Overall Net sales , then the order is the following

Bandai Namco - 678.312 Billion Yen
Sega - 323.664 Billion Yen
Square Enix - 250.394 Billion Yen
Konami - 239.497 Billion Yen
Capcom - 94.515 Billion Yen

The way you have it otherwise is extremely confusing.
 

Deleted member 11093

User requested account closure
Banned
Oct 27, 2017
9,095
Breaks my heart to see Capcom so low in this list, but it's expected. And perhaps it's a blessing in disguise (for their fans, at least), otherwise they would've turned into something like Sega, or even worse, Konami, in terms of their AAA outputs.
 

Stardestroyer

Member
Oct 31, 2017
1,819
Well how many developers get that sorta budget these days? Western or Japanese, ken Levine?

They take years and bet the farm on a single game that needs to sell millions, Ken's studio was closed and reconstructed too even tho infinite sold millions.

It's why I think Kojima will stay at Sony, how many publishers would support that sorta development cycle?
Yes infinite sold millions, but given the issues it had and the long time to market, the rate of return which is very important probably wasn't high enough to justify keeping the studio open.

Also how many of those millions of infinite sold at full price? Remember. Console holder get 30% retail get 10 bucks. By the end publishers get 50% at full price. Especially since infinite cost 100 million to make, excluding marketing cost. It needed to sell 3.33 million [100/30 bucks] at full price to break even, after 5 years breaking even or getting a low Return is not justified.

From a business perspective, waiting for 5+ years after investing over 80 million for kojima is not a good return on invest.

From 2k prospect it wasn't a good investment and if I was a shareholder i would be pissed.
 

DeuceGamer

Member
Oct 27, 2017
3,476
Capcom is significantly lower in Net Sales than the others. I didn't expect them to be that low. Wonder how medium Japanese companies like KT would compare.
 

Mass Effect

One Winged Slayer
Member
Oct 31, 2017
16,718
I'm surprised at how high Bamco's sales are. I guess having the licenses to a lot of the major anime really helps.
 

Deleted member 5535

User requested account closure
Banned
Oct 25, 2017
13,656
Everyone was playing chess while Konami was playing 4D pachinko.

Pachinko amounts to almost nothing on their business compared to video game. Most of their income comes from Konami Digital Entertainment (Console and mobile games).

Gaming and Systems = Casinos on the west
Health and Systems = Sports clubs, fitness and health business in Japan
Amusement = Arcades and Pachinko in Japan

Clipboard01.jpg
 

Deleted member 5535

User requested account closure
Banned
Oct 25, 2017
13,656
I'm surprised at how high Bamco's sales are. I guess having the licenses to a lot of the major anime really helps.

Most of those numbers are outside of gaming (mobile and console). Bamco as a whole company (BNH) is much bigger than any of the others, even if we count their holding companies as well which have all their segments (not on Capcom case since they don't have a holding company and therefore, are their own)
 

chobel

Attempting to circumvent ban with an alt-account
Banned
Oct 25, 2017
1,493
Holy shit Bandai Namco is huge (in term of money) compared to others.
 

jett

Community Resettler
Member
Oct 25, 2017
44,646
I knew Capcom was relatively small but seeing it like really drives the point home.
 

Mass Effect

One Winged Slayer
Member
Oct 31, 2017
16,718
Most of those numbers are outside of gaming (mobile and console). Bamco as a whole company (BNH) is much bigger than any of the others, even if we count their holding companies as well which have all their segments (not on Capcom case since they don't have a holding company and therefore, are their own)

I just remembered that, of course, the Bandai part of Bamco is obviously big in the merchandising sector. How this escaped my mind is beyond me. I guess I still think of them as just Namco.

So yeah, now it makes sense why their net sales are so high.