Gamasutra is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.


Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
December 4, 2021
arrowPress Releases
If you enjoy reading this site, you might also want to check out these UBM Tech sites:


As Costs Rise, Japanese Publishers Reduce Release Count

As Costs Rise, Japanese Publishers Reduce Release Count

July 12, 2010 | By Chris Remo

July 12, 2010 | By Chris Remo
Comments
    Post A Comment
More: Console/PC



With an eye toward cutting costs in a declining market, several major Japanese video game publishers are reducing the number of games they plan to release in the 2010 fiscal year.

This January, Enterbrain released data showing a 6.9 percent drop in Japanese game sales to 542.6 billion yen ($5.9 billion). While that was an improvement over the previous year's 17.4 percent drop, the compound effect of the consecutive losses has caused concern among major industry players.

According to a story by Japanese business publication Nikkei as reported by GameSpot, Sega, Tecmo Koei, and Konami have all shrunk their game counts, citing various specific reasons including boosting profit margins, reducing outsourcing costs, and improving average project quality.

Sega's fiscal 2010 release count will be 56, down 15 percent from the previous year, and the company also intends to institute a 1.5 billion yen ($16.9 million) cut in research and development expenditures.

While these adjustments are expected to decrease game revenue by 18 percent to 100 billion yen ($1.1 billion), that comes alongside the projection of an 11 boost in operating profits to 7 billion yen ($78.8 million).

Tecmo Koei's development cuts will be even more significant, with a decrease in outsourcing expenditures of 3.5 billion yen ($39.4 million) and 11 games shaved off its slate compared to last year. It hopes those efforts will help it increase operating profit more than fivefold from 700 million yen ($7.9 million) to 4.3 billion yen ($48.4 million) this fiscal year.

And while no specific intended effects for Konami were given, the publisher plans to reduce its game count by about 10 percent from last year.


Related Jobs

Sucker Punch Productions
Sucker Punch Productions — Bellevue, Washington, United States
[12.03.21]

Senior Environment Artist
Sucker Punch Productions
Sucker Punch Productions — Bellevue, Washington, United States
[12.03.21]

Character Artist
Threshold Games
Threshold Games — Remote, Washington, United States
[12.02.21]

Concept Artist
Deep Silver Volition
Deep Silver Volition — Champaign, IL or Remote, Illinois, United States
[12.02.21]

Senior Technical Artist









Loading Comments

loader image