The Intended Self-Destruction of Konami

Another one bites the dust.


This one however is a self-inflicted wound.


Konami is about to exit the gaming industry altogether, which is both a shock and a disappointment to gamers everywhere. After over two decades of being relevant (although more relevant in the 90s) and handing us notorious franchises like Silent Hill, Metal Gear Solid, Castlevania, Contra, Pro Evolution Soccer and owning franchises like Bomberman, Bonk, and Adventure Island, Konami’s place in the gaming world is about to disappear.

The beginning of the end didn’t seem obvious at first, but with the controversy surrounding Kojima and Metal Gear Solid 5 we noticed something was brewing. But them pretty much eliminating the console market aspect and focusing more on mobile games and gambling machines was not on our list of potential explanations. Konami is nowhere near as strong as it used to be, so financially and business-wise it makes sense, but as a fan of gaming it hurts quite deep.

Where does Metal Gear Solid go? Especially after firing Kojima and doing whatever it takes to hide the evidence. Where do all the valuable franchises go from here? Unfortunately, they might enter the more mainstream, lower-budgeted, not-as-rewarding mobile market. It would be the equivalent of Applebees transforming into a McDonalds-like place with drive-thru. There are a lot of great ideas and wonderful franchises that might become severely watered-down in the coming years now that you won't see them on a Sony, Microsoft, or Nintendo system.

The baffling part is that just a couple years ago they took Hudson Soft and all their franchises. So clearly competing in the console wars was on their radar. What changed? Rising costs, rising competition, and the mere fact that its just much easier to produce and financially profit off of phone games. Although you won't hit GTA V numbers making mobile games, its the much safer option. Its much safer to focus on the Vegas gambling machines. Sadly, this is all at the expense of the gaming community, which spurns lots of hate in the online world.

Konami's disappearing act from the gaming world is following the disappearing acts of Sega and Square Enix. But unlike the other companies recently shifting their focus, Konami wasn't financially unstable, and came very abruptly. It also cost us a potentially flawless Metal Gear Solid 5 (if you don't think workplace drama affects the final product, you haven't actually held a job), cost us a Guillermo Del Toro Silent Hill, and future installments of both franchises alongside Castlevania and Contra (barring a franchise garage sale of some sort).




And this is what frightens hardcore gamers more than anything---the willingness to stop trying to entertain them.

Microsoft, meet Kojima.

So now Kojima is unemployed.



Folks, I just mentioned that one of the top developers in the entire gaming world is unemployed. His entire company is separated from the clutches of Konami. Do you know what this means?

It’s time to start courting him. Now. Immediately. Nintendo, Sony, Activision, there’s a very valuable and attractive company looking for a new place to stay.



Microsoft, I am mainly looking at you.



Now, it is an established fact that Japan and XBox do not get along, and it has been this way for three gaming generations. The XBox 360 had a dozen JRPG exclusives for the Far East market and not even that helped. Also didn’t help that the XBox lineup dwindled into the usual suspects towards the end---allowing for Sony’s PS3 to claim second place eventually. The Japanese market is still extremely important because they are still heavily invested in the gaming world.

The PSP and PSVita have been relevant mainly because of Japan. 1 out of every 4 PSPs sold were in Japan, and the Vita has sold 3.7 million copies in the same region---while only 7 million more sold in the rest of the world. The PS3 outsold the XBox 360 by 9 million copies in Japan, allowing it to make up for the dismal performance in the United States. Sony and Japan have been great friends and it has led to wonderful economic success. While the company of Sony is floundering altogether, the gaming division has remained strong thanks to the powerful Japanese support.

Enough about Sony though, this article is about Microsoft and how it should throw whatever money it can to create a partnership with Kojima Productions. The staff has an excellent track record, despite it being limited to Metal Gear Solid and Zone of the Enders. XBox 360’s best-selling Japanese game was Ace Combat 6: Fires of Liberation---which couldn’t even break 250K. Guess which production company has made 8 games that sold more than 250K in Japan….

Fun Fact I am repeating from a previous article I wrote:

"Whichever system sells the most in Japan wins the generation—it has remained true since the NES sold nearly 20 million copies back in the 80s/90s. The SNES, PSX, PS2, and Nintendo Wii each outsold the competitors in the Asia market and ultimately became the big seller. "

Microsoft needs to hold hands with Kojima, and promise him plenty of money and resources and become an exclusive third-party company that will make and distribute Japan-only games. Kojima Productions consists of a very talented staff with plenty of attention to details. Metal Gear Solid and Metal Gear Solid IV are amongst the best games ever made, and their handheld iterations prove that they can deliver a lot of great content with more limited hardware. Metal Gear: Ghost Babel was a phenomenal, phenomenal Game Boy Color game that you need to play if you haven't done so already.

I am sure there are dozens of ideas swirling around Kojima’s head and I am sure each of them can deliver. I can see a Disney/Pixar-like relationship with these two—the big brother provides the financial help and marketing, and the younger brother makes the requested art. And even with Metal Gear Solid staying behind and remaining with Konami, Microsoft can help the production studio recover and move on from the ugly breakup.

This is a win-win situation from all parties involved. Microsoft gets a smaller company with a good track record, Kojima gets his freedom that was clearly disappearing during his final days with Konami. Microsoft can recover from the current disastrous performance outside the United States, and Kojima Productions can start a new chapter in its long career in gaming.

Whoever gets Kojima wins. But if there a company that would benefit the most, it would Microsoft for its lifeless-outside-western-hemisphere XBox One.