Game-related companies October-November 2016 financial results summary

This is Nakauchi from the technical sales department.

This is a summary of the quarterly financial results of game-related companies from October to November 2016

First Quarter

 

second quarter

 

third quarter

 

Final settlement

 

* Turn to profit : Turn into profit Turn to loss : Fall into the red Reduction : Reduction in deficit Reduction : Reduction in deficit
Year-on-year comparison is compared to the same period of the previous year.

Summary of companies that caught my eye

Nintendo

Nintendo 3DS

• Kirby: Planet Robobot is performing strongly
• In terms of hardware, sales of the Nintendo 2DS increased

Since the release of "Pokémon GO," sales of previous titles in the "Pokémon" series have also increased, with hardware sales also driving sales, especially overseas

• Hardware sales: 2.71 million units (up 19% year-on-year)
• Software sales volume: 19.23 million units (same as the same period last year)

Wii U

• Hardware sales: 560,000 units (down 53% year-on-year)
• Software sales: 8.3 million units (down 33% year-on-year)

Unlike the previous period,
there were no hit titles such as "Splatoon" or "Super Mario Maker.

amiibo

Since there were few new software titles that could be enjoyed using amiibo, the results are as follows:

• Figure type: Approximately 3.8 million units
• Card type: Approximately 1.7 million
• Download sales: Decreased compared to the same period last year

With overseas sales accounting for 71.1% of the total, the company is heavily affected by the strong yen

The company recorded a 62.7 billion yen extraordinary profit from the sale of investment securities following the sale of part of its stake in the management company of the Seattle Mariners, a Major League Baseball team, resulting in quarterly net income attributable to parent company shareholders of 38.2 billion yen

Future developments

Nintendo 3DS

December: Super Mario Maker (a huge hit with the Wii U version last year) is scheduled for release worldwide

Nintendo Switch

Scheduled for release in Japan and overseas in March 2017

Smart Device Business

December: Global release of Super Mario Run

are scheduled to be released sequentially following Super Mario Run

Earnings forecast revised downward

The reasons for the downward revision are as follows:

• The exchange rate has been moving towards a stronger yen than initially expected
• A review of past sales trends and future sales forecasts
• Sold a portion of its stake in the Seattle Mariners' management company

personal impressions

With overseas sales accounting for 71.1% of the total, even a 1 yen change would be a big deal (though they may be hedging their risks...)

I'm so excited for the Nintendo Switch! I want to go to the trial event in January!

 

DeNA

game business

• Revenue: 50,421 million yen (down 9.6% from the same period last year)
• Segment profit: 12,766 million yen (down 3.4% year-on-year)

In-game virtual currency (coins) consumption

71.3 billion yen (down 1.3% year-on-year)

While coin consumption for apps remained strong, coin consumption for browsers, which have high profit margins, decreased

App coin consumption during the second quarter of the current consolidated fiscal year

• Domestic: 31.3 billion yen (up 48.1% year-on-year)
• Overseas: 8.5 billion yen (down 16.1% year-on-year)

EC business

• Revenue: 9.58 billion yen (down 2.9% year-on-year)
• Segment profit: 926 million yen (down 22.9% year-on-year)

Travel agency services, which are experiencing a growth trend in transaction volume, and payment processing services performed well, but sales of shopping services and auction services fell YoY due to factors such as a decline in usage

sports business

• Revenue: 11,718 million yen (up 51.4% year-on-year)
• Segment profit: 3,991 million yen (up 112.0% year on year)

Yokohama DeNA BayStars Co., Ltd. performed well, with attendance at home games increasing

Yokohama Stadium Co., Ltd., which became a consolidated subsidiary in January 2016,
will contribute to the company's performance for the full fiscal year starting from the fiscal year ending March 2017.

New business/other

Revenue: 5,292 million yen (up 126.1% year-on-year)

Segment loss: 2,215 million yen (loss of 2,381 million yen in the same period last year)

includes the curation platform business, IP creation platform business, healthcare business,

Future developments

■Game business

• In Japan, further strengthen existing popular titles and introduce new titles
• In China, we continue to develop apps that utilize leading IP
• For the global market, including Europe and the US, we will focus on titles developed through business and capital alliances with Nintendo, as well as collaborative titles with external partners

■ E-commerce business

Expanding transaction volume for travel agency services and payment processing services, and focusing on food and daily necessities

■Sports business

Revenues will be limited as the third and fourth quarters of the fiscal year fall within the off-season for professional baseball

■ New businesses and others

We aim for further growth, focusing on the curation platform business

Regarding the development of other new businesses, the company will implement thorough cost management and appropriate investment assessments, while also assessing the growth phase of each business and working to make them profitable

personal impressions

The Baystars' contribution is incredible!!!

It's a mystery why President Ikeda (team president) is resigning

 

Akatsuki

We will focus on expanding existing titles and introducing new titles

July 2013 "Cinderella Eleven"

November 2013: "Thousand Memories" 10 million downloads

March 2014: "Tales of Link" (co-developed with Bandai Namco Studios) 2.12 million downloads

January 2015: "Dragon Ball Z Dokkan Battle" (collaboration with Bandai Namco Entertainment) 90 million downloads

Dragon Ball Z Dokkan Battle

■Domestic

In July, an event was held to celebrate the 30th anniversary of the anime adaptation in Japan, which significantly increased the user base and helped the game reach the top of the rankings, resulting in record sales and profits .

■ Overseas

In July, we held a commemorative event to celebrate the first anniversary of the overseas release, and achieved record sales and profits for both the month and the quarter

Tales of Link

■Domestic

Promotions and events, including TV commercials, helped the user base recover, achieving results that exceeded those of the first quarter

■ Overseas

The business remains strong thanks to the implementation of collaborative initiatives

Thousand Memories

Thanks to collaboration initiatives and events celebrating the 1000th day since the release, August saw the highest monthly sales in the past year, and quarterly sales increased 1.7 times

August Cinderella Nine

■Background to the postponement

• The delay was also due to the development of a new game platform
• With over 150,000 pre-registered users and high expectations, the decision was made to improve the quality

■ Measures

• Improved process for developing new game platforms and environments
• The timing and level of quality checks have been tightened
• The game platform developed this time will be used for new titles to be developed in the future

personal impressions

The momentum of "Dragon Ball Z Dokkan Battle" looks set to continue for a while, and I'm looking forward to "August Cinderella Nine."

At the end of the fiscal year, I'm most looking forward to Akatsuki's announcement. (Even though I don't know anyone there...)

I became a fan of Akatsuki after reading their financial statements. (Even though I don't know anyone there...)