The Konami logo is seen during the Tokyo Game Show in Makuhari, Chiba Prefecture on September 12, .. (Hirogo Ono/AFP/GettyImages)
Japanese videogame maker Konami has ordered a wide-ranging shake-up of its worldwide production center to alleviate second-quarter losses, according to people familiar with the matter. It also proposed a split of its broader business into two new divisions as further austerity measures.
Konami lost its pan-Asian sales crown to Capcom, in part because of slumping popularity of its own fighting series for the arcades and the videogame market overall.
In June, Konami said it expected a loss of ¥1.62 billion ($14.8 million) for the first seven quarters suggesting it test sales to children and gamers.
These earnings came as keepers of long-held gaming memories declared the withdrawal of two of their iconic characters, Pac-Man and Donkey Kong.
The company, which operates in 130 countries, was changing all its product divisions and three of its labs this year to help save ¥10 billion, according to the people, who asked not to be identified because the details have not been made public.
"Konami has split its entire production, design, marketing, R&D, distribution, technology and research and development divisions into several divisions in the past three years," the management company that oversees its operations said May 9 in its latest quarterly earnings summary.
The new business divisions will be named Circus and Free Play, said the people, who asked not to be identified because details have not been made public.
Hideo Kojima, creator of the Metal Gear Solid video games, is to head the mobile division, while Kazuo Hirai, president of Sony Corp. and owner of the software business, will head the entertainment division.
The publisher said it aims to boost hardware sales by issuing tablets to Japan. The company is in talks to release high-definition PlayStation 4 consoles in the country later this year and is developing mobile versions.
Okinaga Publishing Inc. is to work harder as its "multimedia content division" while other companies will become minnows. The company will create no more than five titles or 60 affordable software titles to satisfy business criteria this fiscal year, the management said.
The company listed new investments including its 200,000 square foot (8,000 square meter) "made-from-scratch" headquarters in Ogawa town, Kawasaki Prefecture, as pays through the chop.
Under its current lineup, Konami only releases full-
Japanese videogame maker Konami has ordered a wide-ranging shake-up of its worldwide production center to alleviate second-quarter losses, according to people familiar with the matter. It also proposed a split of its broader business into two new divisions as further austerity measures.
Konami lost its pan-Asian sales crown to Capcom, in part because of slumping popularity of its own fighting series for the arcades and the videogame market overall.
In June, Konami said it expected a loss of ¥1.62 billion ($14.8 million) for the first seven quarters suggesting it test sales to children and gamers.
These earnings came as keepers of long-held gaming memories declared the withdrawal of two of their iconic characters, Pac-Man and Donkey Kong.
The company, which operates in 130 countries, was changing all its product divisions and three of its labs this year to help save ¥10 billion, according to the people, who asked not to be identified because the details have not been made public.
"Konami has split its entire production, design, marketing, R&D, distribution, technology and research and development divisions into several divisions in the past three years," the management company that oversees its operations said May 9 in its latest quarterly earnings summary.
The new business divisions will be named Circus and Free Play, said the people, who asked not to be identified because details have not been made public.
Hideo Kojima, creator of the Metal Gear Solid video games, is to head the mobile division, while Kazuo Hirai, president of Sony Corp. and owner of the software business, will head the entertainment division.
The publisher said it aims to boost hardware sales by issuing tablets to Japan. The company is in talks to release high-definition PlayStation 4 consoles in the country later this year and is developing mobile versions.
Okinaga Publishing Inc. is to work harder as its "multimedia content division" while other companies will become minnows. The company will create no more than five titles or 60 affordable software titles to satisfy business criteria this fiscal year, the management said.
The company listed new investments including its 200,000 square foot (8,000 square meter) "made-from-scratch" headquarters in Ogawa town, Kawasaki Prefecture, as pays through the chop.
Under its current lineup, Konami only releases full-
g
