Taito posts lower profits as arcade business declines

Japanese publisher Taito, owner of the Bubble Bobble franchise, has released a financial statement showing a drop in profits following a decline in growth for its arcade business.

Taito posted net sales of 84.6 billion yen (USD 754.2 million) for financial year 04-05, an increase of 1.9 per cent. However, net profit was down to 1.7 billion yen (USD 15.1 million) from 3.5 billion yen (USD 31.2 million) the previous year.

The rise in revenues was attributed to an increase in the sale of coin-operated arcade machines. However, according to Taito president Yasuo Nishigaki, Taito's bottom line was affected by the rising costs of arcade openings, upgrades and capital expenses. Nishigaki also blamed the losses on extreme weather conditions such as heat waves, earthquakes and typhoons.

Taito titles such as Puzzle Bobble Pocket for PSP and Spider-Man 2 for Nintendo DS have been poor due to a "severe market environment" and "slow growth", executives stated. But the publisher said it will continue to support handhelds and other consoles, without committing to any next-gen platforms in particular.

The company recently closed 22 small gaming arcades after they failed to pull in profits, and established 14 larger ones in commercial complexes. Taito is now planning to invest in research and development for its arcade arm, and has recruited 30 new members of staff to the division.

Taito is hopeful that profits will be bolstered by the release of arcade racer Battle Gear 4 this summer, which offers a new feature that allows players to use an ID authentication key to access registered cars and play online with other gamers in arcades across Japan. In addition, players will be able to check their BG4 rankings via PCs and mobile phones.

Taito said it still intends to bring Half-Life 2 to Japanese arcades, but has yet to announce a release date.