HOME > Investor Relations > Q&A > Q&A about Digital Entertainment Business

Q&A

As described in our IR policy, we conduct our IR activities in a manner that will result in fair disclosure. We would disclose and post some of the most frequently asked questions on the website weekly for better understanding of our business and to provide fair disclosure. If you do not find your answer below, please notify Investor Relations of any questions that are not answered here, so the answers may be added. Thank you for your visiting on our website.

Archives - Q&A about Digital Entertainment Business

Q:

What are some of the titles shown at 2008 E3 Media & Business Summit (E3 2008)?

A:

For this year's E3, Konami is showing titles such as "Rock Revolution", the brand new music game, and "Castlevania Judgment", the first 3D head-to-head battle game from the "Castlevania" series.
Others include the latest title form the long-standing "DanceDanceRevolution" series, a path-breaking music game that attracts attention with its health-promoting features. "Karaoke Revolution Presents: American Idol Encore 2", a tie-up title with the popular American TV show, will also be in the line-up.

For further information, please refer to the following URL.
http://www.konami-data.com/e3/2008/e32008.php

(July 16, 2008)


Q:

What is the release schedule for this year's "Winning Eleven" series?

A:

Annual unit sales of Konami's soccer title "Winning Eleven" marked a record high level of 9.43 million units in FY2008. Cumulative sales of the series exceeded 46 million units as of March 31, 2008.
In FY2009, we will release "J.LEAGUE Winning Eleven 2008 CLUB CHAMPIONSHIP" for PS2 in August. Further, the latest version of the series "WORLD SOCCER Winning Eleven 2009 (working title)" is scheduled to be released this coming winter for PS3, Xbox360, PS2, PSP and Wii. Please look forward to the latest installment with further advances and new gameplay additions.

(July 14, 2008)


Q:

With increased attention in baseball due to the season opening of professional baseball league, what kind of baseball related products does KONAMI have?

A:

KONAMI has marketed its baseball related products with the "PAWAFURU PUROYAKYU" series as the mainstay and received favorable reviews in the market over the years.
For video game software, we will release "PROYAKYU SPIRITS 5" (PS3, PS2) on April 1st, a realistic graphics professinal baseball video game, as well as "JIKKYO PAWAFURU PROYAKYU PORTABLE3" (PSP) on April 24. Through multifaceted development, we have incorporated our baseball content in a range of platforms, not only for video games but also arcades and online games. "BASEBALL HEROES3", an e-AMUSEMENT supported baseball game for arcades, has been oparating in amusement arcades nationwide with favorable reviews since its last October launch.
Please look forwad as we continue to release baseball related products in various platforms.

(March 28, 2008)


Q:

When is the release date of "METAL GEAR SOLID 4 GUNS OF THE PATRIOTS"?

A:

KONAMI will simultaneously release "METAL GEAR SOLID 4 GUNS OF THE PATRIOTS" (PS3) in Japan, North America, Europe and Asia on Thursday, June 12, 2008.

The METAL GEAR series celebrated its 20th anniversary last year. The series has been created to carry an antiwar and antinuclear theme to society, and its total sales have surpassed 22 million units (as of December 31, 2007) worldwide. Please look forward to the final chapter of the METAL GEAR series, in which all the major characters will make an appearance and all the remaining mysteries will be unveiled.

For further information, please refer to the following URL.
http://www.konami.jp/topics/2008/0229/index-e.html


Q:

I'd like to know about the upcoming card game machine for the "Yu-Gi-Oh" series.

A:

KONAMI will launch the "Yu-Gi-Oh! 5D’s Duel Terminal", the first Yu-Gi-Oh! Official Card Game arcade machine, in toy shops and shopping centers across Japan in late March 2008.
It is a card game machine that fuses both the Yu-Gi-Oh! Official Card Game and video games. The game boasts some new features that will appeal to a wide range of users.

For further information, please refer to the following URL.
http://www.konami-digital-entertainment.co.jp/press/2008/003/index-e.html


Q:

Please provide details on the "Winning Eleven PLAY MAKER 2008" which has just been released.

A:

KONAMI released the "Winning Eleven PLAY MAKER 2008" for Wii, the latest version of the popular "Winning Eleven" series, on February 21.

By making full use of the Wii features, you can intuitively control the game by passing or shooting the ball simply by pointing with the remote control or waving the Nunchuk. It is also possible to control multiple players on the field without the ball.

The game is named "PLAY MAKER" because its unprecedented system allows the player to control the game in a more proactive manner.

We also plan to release the game for North America and Europe in March. By offering these new play styles in addition to the hitherto known reality and excitement, KONAMI will globally expand the sales of the "Winning Eleven" series.


Q:

Please provide an outline of the currently held exhibition AOU Amusement Expo 2008.

A:

KONAMI is exhibiting its latest lineup of products such as "jubeat" from the BEMANI series and "HORSERIDERS" which is a card-operated horse racing simulation game.

"jubeat" is a music game with a new taste which is easy for beginners to play. It has 16 lighting panels for players to touch according to the rhythm of the music.

"HORSERIDERS", targeted for a wide range of customers, can be easily operated with its original cards. The cards have 400 different types of racing horses printed which can also be enjoyed as a collection.

Furthermore, there is a wide range of titles such as "Action Deka" in which you "punch", "shoot" and "drive" with the newly developed controller, as well as the latest models of token-operated games.


Q:

In addition to the popularization of handheld systems, new video game consoles are also enjoying brisk sales. What will KONAMI do in response?

A:

While handheld systems such as Nintendo DS and PSP have won broad acceptance in and outside of Japan, we will continue to release titles for those systems. At the same time, we have plans to release titles for Wii, PS3 and Xbox 360 as well.
For example, as for the latest version of the "Winning Eleven" series, we are planning to release "WORLD SOCCER Winning Eleven UBIQUITOUS EVOLUTION 2008" (PSP) in January 2008, and "Winning Eleven PLAY MAKER 2008" (Wii) in February. Both are soccer-themed video games; however they offer completely different play styles.
KONAMI continue to promote content creation taking advantage of characteristics of each platforms by offering new play styles and genres.


Q:

Please tell me about the new games which are expected to attract attention in the amusement arcades for the Christmas and New Years season.

A:

KONAMI continues to promote the online arcade games with the e-AMUSEMENT service, a network-linked arcade game connecting amusement arcade machines nationwide. We unveiled the latest edition of our popular baseball game series "BASEBALL HEROES". At the same time, we expect that the token-operated games which already enjoy high popularity, including the large-scale token-operated game machine "GRANDCROSS" which was released last year, and also "SPINFEVER", a mid-sized pusher game with a new jackpot mechanism which partially takes its inspiration from a pinball machine, will attract more attention toward the Christmas and New Years season.


Q:

Please tell me the leading products for Digital Entertainment segment for the year-end selling season this year.

A:

For our video game business, "PRO EVOLUTION SOCCER 2008" which was developed for multiple platforms in Europe, was released in October. "World Soccer Winning Eleven 2008" for domestic users will be released on November 22 for PS3, Xbox 360 and PS2.
In addition, KONAMI will release "Dokodemo Pitates" (DS), "SILENT HILL ZERO" (PSP) and "JIKKYOU PAWAFURU PUROYAKYU Wii KETTEIBAN" (Wii) in December, in order to expand the lineup of video game software for the year-end selling season.
We also introduced our popular "BASEBALL HEROES 3" in late October, which is expected to gather attention hereafter.


Q:

How do you analyze the trend of the amusement arcade market?

A:

According to the survey (for the fiscal year ended March 2007) conducted by Japan Amusement Industry Association, the amusement arcade market including the amusement machine sales and amusement operation sales has grown by 5.1% year-on-year, exceeding 900 billion yen for the first time. Domestic sales of amusement machines showed increase for 5 consecutive years and achieved a record high for 3 consecutive years since the survey started. Sales of amusement operation also showed increase for 5 consecutive years and achieved a record high for 2 consecutive years; therefore we believe that the market will continue to grow in the foreseeable future.

In the meantime, KONAMI contributed to the revitalization of the market with our “e-AMUSEMENT” service (network-linked games for amusement arcades) such as "MAH-JONG FIGHT CLUB", and adapting to the larger facilities (through “scrap and build”) to penetrate the market with our large token-operated machine "GRANDCROSS".


Q:

Could you tell me about the release plan of video game software going forward?

A:

Handheld systems such as Nintendo DS and PSP boost sales in Japan as well as overseas markets, so that we intend to produce video games for those systems. In addition to this, we will also launch new titles for Wii, PS3 and Xbox 360.
KONAMI revealed its diverse product lineup, scheduled to be released in this fiscal period, for the recent Tokyo Game Show 2007.
The following are some of the titles featured at the show which attracted attention of visitors from all over the world; for handheld systems - healthcare games “Chizu Saeki Style Yumemihada” (Nintendo DS) and “Docodemo Pilatis” (Nintendo DS), for video game consoles - the latest version of our popular dancing game “DanceDanceRevolution HOTTEST PARTY” (Wii), the latest version of “Winning Eleven” series “WORLD SOCCER Winning Eleven 2008” (PS3, Xbox 360), “METAL GEAR SOLID 4 GUNS OF THE PATRIOTS” (PS3) and “Jikkyou Pawafuru Major League 2 Wii” (Wii). Besides these titles, we will continue to develop new genre products that will maximize the characteristics of each platform and meet the demands of overseas markets, therefore we can expect further increase in sales not only in Japan but also overseas.


Q:

Please tell me the major titles exhibited in the Tokyo Game Show 2007.

A:

KONAMI exhibits the first trial consoles at Tokyo Game Show 2007 including "METAL GEAR SOLID 4 GUNS OF THE PATRIOTS", which is the latest of the METAL GEAR series, and the online game "METAL GEAR ONLINE" (both PLAYSTATION 3). It is the first time in the world that customers play these game titles that are both still under production.

Furthermore, "WORLD SOCCER Winning Eleven 2008" for PLAYSTATION 3 and Xbox 360, a new installment in the "Winning Eleven" series, is exhibited for the first time in Japan.

A wide variety of content are displayed during the show including the "TIME HOLLOW" for Nintendo DS, a new adventure game in which a young boy who has the power to change the past sets out to protect his loved-ones such as family and friends; the latest dance game "DanceDanceRevolution HOTTEST PARTY" for Wii, and "Dokodemo Pilates"for Nintendo DS, a game based on the popular fitness program that is the range among women.

Please see the details from the following URL:
http://www.konami.jp/tgs2007/en/index.html


Q:

The KONAMI's video soccer games are very popular. Can you please tell me the current status by geographic area and its strategy?

A:

The unit sales of “Winning Eleven”, the KONAMI's video soccer game series, reached a record high level in excess of 8.47 million units for FY2007, and accumulated total sales of "Winning Eleven" series exceeded 36 million units as of March 31, 2007. This is due primary to the brisk sales in Europe (including PAL territories, Europe and Australia) where approximately 5.9 million units of 8.47 million units were sold. "PRO EVOLUTION SOCCER6", the European version of Winning Eleven series, KONAMI released in FY2007 continued to sell well in the first quarter of FY2008, and "J LEAGUE Winning Eleven CLUB CHAMPIONSHIP" for PS2 was released in Japan in August.

From now on, we are going to release "PRO EVOLUTION SOCCER 2008" in Europe, the latest version of “Winning Eleven”series, for PS3, Xbox 360, PC, PS2, PSP, Nintendo DS and Wii based on our "multiple platform" strategy from the Autumn gradually. "PRO EVOLUTION SOCCER 2008" represents a massive step forward for the Pro Evolution Soccer series by newly adding PS3 and Wii as platforms from this fiscal period, which will meet your expectations.


Q:

I'd like to know in detais about "JIKKYOU PAWAFURU PUROYAKYU" series that will be released in the North American market.

A:

"JIKKYOU PAFURU PUROYAKYU" series, which has been sold more than 14.8 million units in total, is one of the most pupular game softs in Japan. The title to be sold in North America, "MLB POWER PROS", will be compatible with the Wii and PlayStation 2 platforms this fall.

" MLB POWER PROS" will use actusl data on the athletes and baseball teams of the Major League. Also, by taking full advantage of the expertise in baseball-themed video game that KONAMI has cultivated over the years in Japan, including such features as easy-to-understand operation and sound effects that produce a very real-like sensation, the game incorporates elements that will help it to catch on easily in the North American market.

There are a lot of video games about baseball that are recreated realistically in the North American market. As one of the few genuine baseball-themed video games that use characters, "MLB POWER PROS" contains content that will endear it to children as well. The North American market is huge more than that of Japan, and baseball-themed game is a popular genre. With this rollout of the "JIKKYOU PAWAFURU PUROYAKYU" series into the North American market, KONAMI aims to further increase its sales of baseball-themed computer and video games.

taking advantage of characteristics of handheld systems and global expansion.


Q:

What will Konami do in response to the continuous populaliztion of handheld systems?

A:

In the handheld systems market, especially, "Nintendo DS" sold over 40 million units worldwide, have won broad acceptance on the market including females, seniors and users who have not been interested in such games, and have attracted a broad cross section of users of both sexes and all ages.
KONAMI also targets those new users and released Yoga title as a new genre product “DOKODEMO YOGA” on July 5, 2007, which capitalized on cross-sectional synergy between Health & Fitness and Digital Entertainment. You will be able to practice Yoga as full-scale instruction software under the production cooperation of Konami Sport & Life. In the fall, plans call for “~Dream Skincare~” to go on sale, which is crammed with full of skills of beauty skin care instructed by the beauty professional Chizu Saeki, which enable you to learn easily how to undertake total skincare anywhere at any time. In addition to these new products, we are going to release the latest version of our popular content "Winning Eleven”series for Nintendo DS not only in Japan but also overseas in fall. KONAMI continue to promote contents creation taking advantage of characteristics of handheld systems and global expansion.


Q:

How do you analyze the market trend of the amusement arcade market?

A:

According to the survey conducted by Japan Amusement Machinery Manufacturers Association (JAMMA), the amusement arcade market including the amusement machine sales and amusement operation sales have been steadily growing for 4 consecuritve years since 2003 after year-on-year losses for 2 consecutive years in 2001 and 2002. Our sales showed a significant year-on-year increase of 6.3% in 2006 which resulted in the year-on-year increase for 4 consecutive years and achieved a record high since the servey started.
Considering the solid sales of online games that KONAMI tapped the market with our e-AMUSEMENT games such as "MAH-JONG FIGHT CLUB" and token-operated games for large-sized amusement arcades, we believe that the market will continue to grow in the foreseeable future .


Q:

I heard that KONAMI developed new healthcare equipment using the skills of popular game "Dance Dance Revolution". Please tell me the details.

A:

KONAMI developed GROOVE MOTION DDR, decided to promote introducing in Konami Sports clubs nationwide and selling to external parties. GROOVE MOTION DDR is the fist digital studio program system in this business field, of which a large number of people dance to step instructions by virtual instructor and arrows desplayed the screen that enable beginners to master dance motion smoothly. You can expect very in-depth motion technique and higher motion effect from upper body motion added to existing step motion of DDR. Participants will be measured motion score, total ranking and calorie consumption by wearing motion censor belt Currently the maximum number of participants is 24, however we are working on that increasing number of people can excersice at the same time in the future.

DDR is a high-visibility game which is quite popular not only in Japan but also in the US and Asia. Especially in the state of West Virginia , many schools are now using DanceDanceRevolution, or D.D.R., as a regular part of their physical education curriculum, and is frequently covered by media. As increasing the visibility GROOVE MOTION DDR, it is expected to contribute further development of Health & Fitness segment in the future.


Q:

I've heard about brisk sales of the new video game console "Wii". How will KONAMI response to "Wii" in this fiscal period?

A:

Nintendo's new video game console "Wii" has attracted attention even before its release because of the unique functionality of the Wii controller and a function enabling to download games released in the past to play. Especially, the touchy feely remote-control type of controller encourages even people who are not good at the button operation in the existing video game consoles to play easily. We have been expecting the expansion of game users and the creation of new play. "Wii"'s market penetration benefits the game soft makers benefit with the expansion of business opportunities. KONAMI also release the new titles which make the most of the unique functionality of Wii controller and titles that enable us to create new play style of our existing titles. Following "Elebits", "Dewy's Adventure" features a small water fairy, that is transformed into ice and steamt according to change in temperture, that fights to eliminate the terrible scourge and save the world. Players take control of environment using the Wii controller, wave it back and forth to happen earthquake, tilt it to slip Dewy and shack it paleways to blow wind. The KONAMI's popular baseball title, "JIKKYO PAWAFURU PROYAKYU" for Wii is scheduled to release in Japan in July and"Dance Dance Revolution Hottest Party" , our popular title DDR in North America developed for Wii is also scheduled to release in this fiscal period. We intend to fortify the products development taking advantage of the unique functionality of "Wii".


Q:

I heard that Dance Dance Revolution (DDR) is booming in the US. Can you please be more specific?

A:

In 2001, KONAMI started to market DDR. Although it was relatively small quantity sales at the start, it has achieved over one million units sales per year recently because of the growing needs of health conscious in North America. Unlike traditional video games, DDR requires players to dance with music and many schools including the State of West Virginia are now using Dance Dance Revolution, or D.D.R., as a regular part of their physical education curriculum. It is said that more than 1,500 schools are expected to be using the game by the end of the decade. Thus DDR is frequently covered by media, attract a lot of attention again and we expect further positive impact on its sales. "Dance Dance Revolution Hottest Party" for Wii is also scheduled to release in North America in this fiscal period.


Q:

With the season opening of Japan's professional baseball league and Major League Baseball, KONAMI announced its special sponsorship for the "KONAMI CUP Asia Series2007", that we expect to raise awareness of the baseball again. Please tell me the lineup of baseball related products?

A:

KONAMI has marketed its baseball related products with the "PAWAFURU PURO YAKYU" series as the mainstay and received a favorable review in the market. In the recent years, through multifaceted development, we have incorporated baseball content in a range of platforms, not only video games but also amusement and online.
"BASEBALL HEROES2", e-AMUSEMENT service for arcades, has been oparating in the amusement arcades nationwide with favorable reviews since the launch of service last October. In terms of video game software, we released "PROYAKYU SPIRITS 4" for PS2 and PS3, a realistic professinal baseball video game, on April 1st, "JIKKYO PAWAFURU PROYAKYU PORTABLE2" for PSP on April 5 and started the distribution of "MOBILE PAWAPURO 2007" for mobile phones. In addition to the season opening of Japan's professional baseball league and fine showings of Japanese players in Major League Baseball, the "KONAMI CUP Asia Series2007" is to be held for the third consecutive year which promotes international development of baseball in Asia. We are going to release the products in various platforms one after another for the baseball related products market that we expecet to be getting popular more and more from now on.


Q:

Please tell me KONAMI's efforts toward online game business.

A:

In terms of KONAMI's efforts toward online game business, we offer the "e-AMUSEMENT"service, a network-linked game for amusement arcades represented by MAH-JONG FIGHT CLUB series, sell online video games for home such as Yu-Gi-Oh! Online and distribute mobile contents via major telecommunications careers around the world.
The "e-AMUSEMENT" service, a network-linked game for amusement arcades, enables players to play online head-to-head games nationwide, and grew to a business such like now operating over 50,000 units of e-AMUSEMENT installed machines.
We started to offer the "AQUA NOTE - online aquarium" service, an online video game for PC and distribute "MOBILE PAWAPURO 2007", an online game content for mobile phone, which is perfectly compatible with professional baseball program for 2007.
KONAMI expects online game business to grow further more and will supply various lineup using major contents owned by KONAMI.


Q:

Could you tell me about the KONAMI's strategy of game software going forward?

A:

In terms of next generation consoles, we are working to develop new titles for PS3 and going to release "PROFESSIONAL BASEBALL SPIRITS4" on April 1, 2007. In addition, we are also working to develop "METAL GEAR SOLID 4", which is one of the titles to drive the PS3 penetration, however, still need to see the timing of platform penetration and release of other titles. In terms of Wii, KONAMI would like to propose new play styles of games KONAMI released in the past, and announced in a show recently held in the US. to release "Dance Dance Revolution Hottest Party", a popular music game series "Dance Dance Revolution" for Wii, and are considering the timing to release in Japan as well.

Sales of world popular soccer game "Winning Eleven Series" developed for multiple platforms is the mainstay especially in Europe. We are going to develop the titles utilizing the characteristics of each platform so that our customers could be pleased at, looking at the market penetration of each platform as PS3 was released in Europe in March.

In addition, we will release "Dokodemo Yoga" for Nintendo DS an instruction software developed collaborated with Konami Sports club. We are going to release titles taking advantage of KONAMI's mainstays of "Entertainment" and "Health".


Q:

Please let me know about the "e-AMUSEMENT SPOT" that Konami has recently started nationwide.

A:

e-AMUSEMENT SPOT is the wireless LAN access service which enables to enjoy online games against one another via wireless connection and to browse each game player's data such as playing records and ranking in Japan for arcades when you bring both any game consoles with wireless LAN connecting functions including PSP and video games to the capable place for e-AMUSEMENT SPOT located in complex leisure facilities including arcades.
MAH-JONG FIGHT CLUB is available to this service. So you can download your playing records and ranking from this arcade and even the one who unavailable to access the wireless LAN service can try to play against the PSP or PS3 player when you designate the e-AMUSEMENT SPOT as an access point of the wireless LAN application.

We continue to provide more site for this service and to improve this corresponding game software and service with new gameplay using e-AMUSEMENT in Konami's specialized line.


Q:

What are KONAMI's expectations for the PS3/Wii online, using the network funtion, buying of games released in the past?

A:

As a matter of fact, KONAMI provides popular titles released in the past through a download service using each network function of PS3 and Wii. We expect that this provision would utilize the past titles effectively and appeal (to the users /or markets) as the titles of KONAMI brand.
The download service is one example which uses online service. As the market penetrability of consoles, we expect a new possibility of services which differs from those of the past, therefore, we will continue to reinforce our contents to take a new business opportunity.


Q:

Please tell me the leading products in Degital Entertainment Segment for the year-end selling season this year.

A:

In Computer & Video Games Business, "PRO EVOLUTION SOCCER 6" developed for multiple platforms in Europe and "World Soccer Winning Eleven DS" for domestic users are now on sale and receiving favorable reviews. In addition, KONAMI will release "Elebits" for Nintendo Wii and "Stock Trading Trainer Kabutore!" for Nintendo DS in December. Plans call for rolling out a lineup of home video game software titles based on KONAMI's ever-popular and highly realistic mah-jong arcade game MAH-JONG FIGHT CLUB. Following the launch of "MAH-JONG FIGHT CLUB ONLINE" for PS3 in November, its PSP version and DS version will be released in the beginning of December. In the late December, "METAL GEAR SOLID PORTABLE OPS" for PSP will be released.

In Amusement business, the e-AMUSEMENT product "NOVA Usagi no Game de Ryugaku!?", an English quiz game, is getting popular and continues to attract people's attention in the meanwhile. We also introduce our innovative original game for brain training to activate brain "Nokaihatsu Kenkyujo Kuru Kuru Labo" in December, which is expected to be popular.


Q:

Sony Computer Entertainment schedules to release PLAYSTATION 3 (PS3) in Japan, the United States and Canada on a near day. Please tell me the schedules of video game titles that KONAMI will release for PS3?

A:

On November 16, "MAH-JONG FIGHT CLUB-Zenkoku Taisenban" is scheduled to release in Japan. This is the PS3 version of "MAH-JONG FIGHT CLUB" which is well-known as an arcade game. As its name indicates, the online function enables players to fight against players nationwide. The detailed data will be saved in a server and players can review and analyze the score-line and strategies. In 2007, the long-awaited release of "METAL GEAR SOLID 4 GUNS OF THE PATRIOT" will come. This is a next-generation adventure set in the aftermath of MGS1 and 2. Solid Snake infiltrates the battlefield to fulfill the toughest mission. This title highlights the beautiful graphic utilizing the feature of PS3.


Q:

Would you tell me new games which are expected to attract attention in the amusement arcades for the year-end party and the Christmas season?

A:

KONAMI continues to promote the online arcade games with the e-AMUSEMENT service, a network-linked arcade game connecting amusement arcade machines nationwide. In response to the recent surge in popularity of the learning games, we unveiled "NOVA Usagi no Game de Ryugaku!?", an English quiz game originated by supervisors of a major language school NOVA, and the latest edition of popular baseball game series "BASEBALL HEROS". We also introduce our innovative original game for brain training to activate brain "Nokaihatsu Kenkyujo Kuru Kuru Labo" toward the end of this year. At the same time, we expect that the token-operated games which already enjoy high popularity, including the large-scale token-operated game machine "GRANDCROSS" and the large horse-racing token-operated games, will attract more attentions toward the year-end party and the Christmas season.


Q:

Will the adjourned release of the PLAYSTATION3 (PS3) in Europe have an effect on the KONAMI CORPORATION (KONAMI)’s financial results for fiscal 2007?

A:

For this period, KONAMI does not plan to release new titles for PS3 in Europe and does not expect the adjournment will have an effect on its financial results. In line with our basic policy, we release titles, which are compatible with the characteristics of the hardware platforms as for next-generation video game consoles, after the platforms become popular, and we adopt strategy that our revenues are not subject to the schedule of new platform release. Accordingly, titles for PlayStation 2, PlayStation Portable and Nintendo DS, which have already been popularized, will be leading products for this period. We plan to exhibit major titles that will be released from now at the TOKYO GAME SHOW 2006, which will be held from September 22, 2006.


Q:

What are the factors that the amusement arcade industry is now booming?

A:

The development of large-scale amusement arcades has changed its image from gloomy and small to the place where families and groups consisting of large number of people can even visit and enjoy. In relation to the development of IT, the arcade game machines incorporating online functions for amusement arcades enable game data save, online gaming with players in other arcades, and encourage repeated play and result in the increase in number of repeaters. In addition, the amusement arcade machines which users play using cards are getting popular recently and users repeatedly play to collect cards.

In response to the recent change in the market environment, KONAMI develops and offers GRANDCROSS which is the large-scale token-operated game machine, MAH JONG FIGHT CLUB which is the network-linked arcade game for amusement arcades for the e-AMUSEMENT service, and BASEBALL HEROS which is the arcade game machine using cards.


Q:

Do you have sales information for your popular soccer games?

A:

As for domestic sales, the latest version of our blockbuster soccer series, “WORLD SOCCER Winning Eleven 10” for the PlayStation 2 computer entertainment system is recording strong sales even after two months with the launch, and the total sales volume of more than one million units. “Pro Evolution Soccer 5” which was released last autumn also continued to strong sales in Europe. Besides video games, we have amusement arcades machines, mobile gaming for cell phone, music CD and the soccer fanzine as multi-faced soccer contents, by strengthening existing content.


Q:

Do you have video game's release plan in this fiscal year? Are you launching of video game titles for Nintendo's Wii (formerly code named Revolution) and for the PLAYSTATION ®3 computer entertainment system?

A:

Handheld video games such as for Nintendo DS and PSP system boost sales in overseas markets, so that we intend to produce video games for handheld systems. In addition to this, we will also launch for next generation video game platforms.
Since we have been making the US based development team, our plan is to produce video game titles to meet the demands of the US market.
Konami revealed its diverse product lineup for the 2006 Electronic Entertainment Expo (E3) in Los Angeles. For next generation consoles, an original action title “Elebit”(working title) for the Wii and “Metal Gear Solid 4”, the newest game in Hideo Kojima’s legendary tactical espionage action series for the PLAYSTATION® 3 were featured at the E3 show.s


Q:

I’d like to know more about Konami’s merchandising strategy and its soccer products release at the end of April.

A:

As a soccer based content, the latest installment of lauded Winning Eleven series (known in Europe as Pro Evolution Soccer) "WORLD SOCCER Winning Eleven10 " for PlayStation 2, will be released on Thursday, April 27, 2006. "WORLD SOCCER Winning Eleven 2006 ARCADE CHAMPIONSHIP" will be consecutively installed at amusement facilities on Wednesday, April 26, 2006. Besides, the "Winning Eleven MOBILE" site, through which players can conveniently enjoy Winning Eleven related contents through their mobile phones, will undergo a major renewal. Moreover, the first issue of the new Soccer Culture Magazine "WE-ELe", which fulfils the soccer fans desire to "see", "know", and "talk about" such topics as the situation in world soccer and strategic information of the game, has been launched on Wednesday, May 11, 2006. The magazine will be published bimonthly (the eleventh of the odd months). Konami continues to provide products and services from different angles which are Video game, Amusement, Online and Multimedia business sectors.


Q:

Would you tell me your strategy for the next generation console systems?

A:

Konami is expected to launch “Rumble Roses XX” for Microsoft Xbox 360 as a next generation console system. Our basic policy of the next generation consoles is based on contents, and we provide software for most suitable hardware in meeting targeted users. Thus, the number of software for each platform may differ, but we do not supply for one specific platform. Also, one content may use not only for home-use video game, but also for arcade game, mobile online and the others. We build up business structure to diversify contents from different angle even if hardware's installed number was small. Expanding multiple-use, it would be possible to keep low development cost.


Q:

What is your view regarding future video game industry market?

A:

The video game industry continues to grow every year and we believe that we can expect further growth globally from launching of the next generation console, Microsoft's Xbox 360 and Sony PlayStation 3. The trend of new hand held entertainment systems such as Sony PSP and Nintendo DS are response to increasing demand. The video game market is expanding includes on-line game through PCs in addition to new video game hardware.
In Konami, for instance, we are releasing not only PlayStation 2 platform for World Winning Eleven series (soccer game), but also PSP platform and started our mobile contents distribution services with mobile gaming portals. Konami will aggressively release our proprietary contents that offer greater value in meeting targeted customer needs.


Q:

Please tell me KONAMI's approach for their next generation video game consoles releasing from Microsoft, Sony Computer Entertainment and Nintendo.

A:

Since we believe that Microsoft's Xbox 360 include a strong network function, make sports games a perfect match, we have already announced to launch a new "Winning Eleven" Series a soccer game, "Rumble Roses XX" (working title) a woman wrestling game, "PROYAKYU SPIRITS" (working title) a baseball game. KONAMI's approach to the next generation consoles is to provide a game for the most suitable consoles, taking into consideration the target age group and the number of console installation. We might provide one title for more than one console possibly.


Q:

Please tell me the reason why the token-operated games are selling well in the Japanese market.

A:

Token-operated game sales are included in the Amusement domain in the Digital Entertainment Business. In FY05, sales of token-operated games were 10.9 billion yen, almost equal to the record sales of 11 billion yen in FY04. We believe that this business has established a business base that can constantly generate sales of 10 billion yen or more. We also plan to sell 10.5 billion yen in FY06.

The reason why KONAMI's token-operated games have been selling well is that the entertaining elemets of KONAMI's large-sized token-operated games are well accepted by users and arcade operators. KONAMI's large-sized token-operated games are generating high income at amusement arcades nationwide. Furthermore, the credibility of KONAMI's games is another reason. While large-sized token-operated games generally have very complex structures, KONAMI's games are well-known for being a product that rarely fails. The market environment, where the amusement operation sales have been recovering, is serving as a tail wind as well. In recent years, many large-sized arcades have been built together with shopping centers and other facilities. Large-sized arcades have token-operated game corners where KONAMI's large-sized token-operated games are often located. We plan to continue to provide innovative and high-quality token-operated games.


Q:

Please tell me about your platform strategy in the video game business.

A:

KONAMI's approach is multi-platform strategy in which KONAMI does not rely only on certain platforms. Taking into consideration the characteristics and target users of each content and the installation of each platform, KONAMI chooses the optimal platform for each content.

Sometimes KONAMI provides a content simultaneously for several platforms, and other times, KONAMI provides a content for consoles and then converts it to handheld platforms. KONAMI also provides a content for consoles, mobile phones and on-line games, which creates synergies among businesses.


Q:

Please describe your view on the toy market in Japan.

A:

The toy market in Japan has not seen any sharp declines in demand despite the low birth rate. The main reasons are that expenditure per child is increasing and that toys targeting adults are stimulating demand. We will broaden our target users by enhancing our product lineup as well as actively growing this business in international markets that are much larger than that in Japan.


Q:

Amusement arcade operators are expected to continue to open many large-sized arcades this year. Will KONAMI's strategy in the arcade business continue to be to focus on large-sized token-operated games and video games?

A:

KONAMI's large-sized token-operated games and e-AMUSEMENT on-line games including MAH-JONG FIGHT CLUB continue to be accepted well in the market and will continue to be KONAMI's focus items for FY2006.

But considering the increasing number of arcades opening in shopping centers targeting family users, KONAMI will also enhance its product line-up targeting light users such as families and children.


Archives

Archives