Konami profits down 81% in first half year
Game revenue halves as consumer spending continues to show decline
Konami has reported significant declines in its revenues and profits for the first half of fiscal 2010.
The company's overall revenues were down 22.5 per cent year-on-year to JPY 114 billion (USD 1.27 billion), operating income fell 80 per cent to JPY 4.6 billion (USD 51.1 million), and net income dropped 81 per cent to JPY 2.2 billion (USD 24.4 million).
Net revenue from Konami's digital entertainment division was down 45 per cent on last year to JPY 51.4 billion (USD 572 million), while operating income went from JPY 26.3 billion (USD 293 million) to JPY 2.2 billion (USD 24.4 million).
Konami issued a forecast last week warning investors of the profit drop, which it attributed to a quiet release period and unfavourable comparisons to last year's earnings that were helped by the release of Metal Gear Solid 4: Guns of the Patriots.
"The business environment surrounding Konami Corporation and its subsidiaries was harsh despite showing signs of some recovery from the economic slowdown that began last year," the company said in a statement. "This was mainly due to continued uncertainly caused by factors such as the impact of the appreciation of the yen and a decline in consumer spending."