Konami’s strategic bet on digital gaming pays off

Bruna Garcia November 5, 2024

SiGMA news

Konami Group Corporation has announced a remarkable 20 percent surge in revenue to a record ¥184.08 billion (approx. €1.11 billion) for its fiscal first half, ended September 30th. This impressive growth is largely attributed to the company’s strategic pivot towards digital entertainment.

The Digital Entertainment segment emerged as the company’s star performer, delivering a staggering 29 percent revenue increase to ¥102.1 billion (€615 million). This significant growth emphasises the popularity of Konami’s digital games and the company’s ability to capitalise on emerging trends in the gaming industry.

In contrast, Konami’s traditional gaming business, including gaming machines and casino management systems, has faced challenges. The Gaming & Systems segment experienced a 3 percent decline in revenue to ¥19.1 billion (€114 million), however, equivalent to 12 percent of total first-half revenue.

The Gaming & Systems segment generated profit for the period of ¥2.38 billion, a fall of 24 percent year-on-year, out of Konami’s total business profit of ¥50.2 billion (€301.8 million), up 42 percent.

North America and Australia

While the North American and Australian markets remained relatively strong, increasing competition and evolving consumer preferences have put pressure on the traditional gaming segment.

These markets continue to experience the constant introduction of new products by competing slot machine manufacturers providing for new placement opportunities. The supplier said that its Dimension 49 and Dimension 27 gaming machines drove sales of its slot machine segment, while the Dimension 43×3 machine also steadily increased its unit sales.

In terms of ’s gaming content in the North American market, popular titles from the Unwooly Riches series of games, Spice and Sugar, continue to perform well, while titles from the Fortune Bags series, such as Lucky Honeycomb and Dragon’s Law, have increased sales.

In the Australian market, the K-pow! Pig and Bull Rush series have maintained a high performance.

In August, Konami started the test operation of Class II machines in Florida, which are permitted in casino facilities operated by Native American tribes.

A strategic bet on the future

Konami‘s strategic decision to invest heavily in digital entertainment has proven to be a wise one. By leveraging its strong brand and innovative game development capabilities, the company has successfully positioned itself as a major player in the global gaming market.

As the gaming industry continues to evolve, Konami‘s ability to adapt to changing consumer preferences and technological advancements will be crucial to maintaining its growth trajectory.