Japan's Gaming Industry Had a Stormy Fiscal Year in Its First Half

Japan's game industry found itself with a rusty sword and a torn haori after this year's first fiscal financial report. The coy earnings could be explained by many factors, which include the global crisis we experienced, but the bottom line is the same. Konami and Namco Bandai have all suffered a profit deficit compared with last year's same period, while Square Enix is in a mixed situation.

Konami's revenues for the first half of the fiscal year came down to ¥113.9 billion or $1.26 billion from the ¥146.9 billion or $1.63 billion it earned last year. Profits went down by a staggering 81.6 percent, down to ¥2.20 billion or $24 million. Most of the money it did make was brought by its sports franchise, with Pro Evolution Soccer selling 1.25 million units, the Jikkyou Powerful Pro Yakyuu baseball game capping 770,000 copies. Still, the company has high expectations for the rest of the year, and hopes its yearly revenues will amass ¥310 billion ($3.43 billion), just over the ¥309.7 billion that last year brought.

Namco Bandai isn't doing any better. The company revealed a net loss of ¥6.04 billion or $66.52 million, which is quite dramatic, since, last year, the company announced a net profit of ¥1.28 billion or $14.13 million for the same time period. Sales also plummeted, and only generated ¥172.73 billion or $1.90 billion, compared with last year's ¥190.80 billion or $2.10 billion. The company has some optimistic views for the year, though, and expects its full-year revenue to be of ¥400 billion or $4.41 billion, with a net profit of ¥8.5 billion or $93.66 million. The top products for the company were Ben 10: Alien Force, with 480,000 copies sold, Afro Samurai, with 420,000, Tales of Vesperia, with 410,000 and Ben 10: Protector of Earth, selling 330,000 units.

Square Enix reported a ¥90.6 billion or $998 million revenue for the time frame, a 33.2-percent increase since last year. Still, profits fell by 55.7 percent to ¥2.68 billion or $29.5 million. Top sellers for the company were Dragon Quest IX, currently a Japan DS-exclusive, which sold four million units, and Kingdom Hearts 358/2, which moved 1.22 million copies. Dissidia Final Fantasy for the PSP also sold 720,000 copies. The big hit from Eidos, Batman: Arkham Asylum, delivered 2.63 million games in North America, while Mini Ninjas scored 600,000 units. Overall, Square expects that, by the end of the fiscal year, it will have a 180-billion or $1.98-billion revenue. Still, the company expects a 57.9-percent increase in profits for the entire year, up to ¥10 billion or $110 million.