Tag Archives: Earnings

Business, Games, Gaming, News

Q3 2024 for Konami is official in middle of Metal Gear Delta: Snake Eater 3 release’s expectations

Konami Group Corporation recently announced its financial results for the third quarter of fiscal year 2025, covering the period from April to December 2024. The company reported impressive growth across its business segments, with a notable increase in revenue and profit (numbers converted on US dollar equivalents).

  • Revenue: $2.00 billion, up 22.8% year-on-year.
  • Business Profit: $560 million, up 38.7% year-on-year.
  • Operating Profit: $557 million, up 45.5% year-on-year.
  • Profit for the Period: $410 million, up 41.8% year-on-year.

The strong performance was driven by the success of titles such as Silent Hill 2 and eFootball, which exceeded sales expectations and contributed significantly to the company’s digital entertainment segment.

Now Konami expects to end the fiscal year in March with $2.66 billion in revenue, $696 million in business profit, and $645 million in operating profit. This is significantly higher compared to the previous prediction of $2.45 billion, $597 million, and $545 million respectively.

Only time will tell if Konami nails that outlook.

Expectations for Metal Gear Solid Delta 3: Snake Eater

One of the most anticipated releases from Konami is the remake of Metal Gear Solid 3: Snake Eater, now titled Metal Gear Solid Delta 3: Snake Eater. This remake has generated a lot of excitement among fans and industry experts alike.

Here are some of the key expectations for the game:

  1. Camouflage System Remastered: The original game’s camouflage system was a standout feature, allowing players to blend into their surroundings. Fans are hoping for an even more immersive and visually enhanced version in the remake.
  2. Better Movement: The original game’s movement mechanics were somewhat clunky, and players are looking forward to smoother and more responsive controls.
  3. Refined Close-Quarters Combat (CQC): The melee combat system in the original game was considered one of its weaker points. The remake is expected to feature a more refined and satisfying CQC system.
  4. Improved Survival System: The survival elements of the game, such as hunting and crafting, are expected to be enhanced to provide a more engaging experience.

Konami’s Q3 2025 financial results showcase the company’s strong performance and growth potential. With the highly anticipated release of Metal Gear Solid Delta 3: Snake Eater, fans and investors alike have high hopes for the future. The success of this game could further solidify Konami’s position in the gaming industry and drive even greater financial success in the coming quarters.

Gaming, News, PC

Intel closed the year with a deep dive

Intel Corporation recently released its Q4 2024 earnings report, providing insights into its financial performance and future outlook. Here’s a detailed analysis of the key points from the report:

Intel reported $14.3 billion in revenue for Q4 2024, a 7% decrease year-over-year. The company’s gross margin was 39.2%, down from 45.7% in Q4 2023. Despite the decline, Intel managed to achieve adjusted earnings per share (EPS) of $0.13, slightly above Wall Street’s consensus estimate of $0.12.

Full-Year Results

For the full year 2024, Intel reported $53.1 billion in revenue, a 2% decrease compared to 2023. The company’s full-year gross margin was 32.7%, down from 40.0% in 2023. Intel’s full-year EPS was a loss of $4.38, compared to a loss of $0.13 on a non-GAAP basis.

Understandably, Intel provided a cautious outlook for Q1 2025, forecasting revenue between $11.7 billion and $12.7 billion. The company expects first-quarter EPS to be a loss of $0.27 on a GAAP basis and $0.00 on a non-GAAP basis. This outlook reflects seasonal weakness, macroeconomic uncertainties, and competitive dynamics1.

Intel’s interim co-CEOs, David Zinsner and Michelle Johnston Holthaus, highlighted the company’s renewed focus on strengthening and simplifying its product portfolio and progress on its process roadmap. They emphasized the importance of cost reduction and efficiency to enhance Intel’s competitive position and create shareholder value.

Market Reaction

Following the earnings report, Intel’s stock experienced volatility. Investors were disappointed by the softer-than-expected revenue forecast for Q1 2025, and there was no update on the search for a permanent CEO2. The company’s stock price fluctuated as analysts and investors weighed the implications of the report.

Intel’s Q4 2024 earnings report reflects a challenging period for the company, marked by declining revenue and margins. However, the company’s focus on cost reduction and efficiency, along with its strategic initiatives, provides a foundation for future growth. Investors will be closely watching Intel’s progress in the coming quarters to see if the company can navigate the current challenges and return to profitability.

Business, Gaming, News

Capcom ended 2024 with a sudden stop on positive quarters

For those who has been following corporate news and mainly from Capcom, the Japanese veteran has been nailing good numbers in each earning report from the past 2 years, but of course and unfortunately, some things cannot last forever and this is what the latest earning can tell us.

Capcom released its consolidated financial results for the 9 months ending December 31, 2024 for its Q3 for the fiscal year 2024. The report provides a comprehensive overview of the company’s performance and future outlook, revealing both challenges and opportunities ahead.

The creators of franchise like Megaman, Resident Evil, Street Fighter and other classics, reported net sales of 88.853 billion yen or around $573.08 million, a decrease of 16.3% compared to the same period last year. The operating income also saw a significant decline, dropping by 33.4% to 23.066 billion yen or around $149.84 million.

Despite these decreases, Capcom remains optimistic about its future performance, citing several key factors contributing to its resilience.

The Digital Contents segment, which includes home video games, experienced a slight decline in unit sales for new titles. However, the performance of catalog titles (excluding those released in the previous fiscal year) has steadily increased year over year2. The Arcade Operations business saw growth in existing stores, which were utilized as cooling shelters during hot weather, resulting in increased revenue and profit. The Amusement Equipments business launched two new models and sold 17,000 units as planned, benefiting from cost reductions through the procurement of common components.

Future Outlook

Capcom has maintained its full-year forecast, with expectations of increased sales and profit due to digital sales growth in the Consumer sub-segment. The company forecasts an earnings per share of ¥109.98 (US’ 71 cents) and a dividend of ¥36 (US’ 23 cents) for the fiscal year ending March 31, 2025. Capcom aims for 12 consecutive years of operating profit growth, driven by the stability of Digital Contents and strong performance in the Amusement Businesses.

Key Takeaways

  1. Resilience Amid Challenges: Despite a decrease in net sales and operating income, Capcom remains optimistic about its future performance.
  2. Growth in Digital Sales: The company expects increased sales and profit due to digital sales growth in the Consumer sub-segment.
  3. Strong Performance in Amusement Businesses: The Arcade Operations and Amusement Equipments businesses have shown growth and resilience.

Capcom’s latest earnings report highlights the company’s ability to navigate challenges and capitalize on opportunities in the ever-evolving video game industry. With a strong focus on digital sales and continued innovation in its business segments, Capcom is well-positioned for future growth.

Business, Gaming, News, Xbox

How Microsoft and Xbox are doing reaching the half of fiscal year 2025?

Microsoft recently released its FY25 Q2 earnings report, revealing a mixed bag of results. The company posted a revenue of $69.6 billion, a 12% increase year-over-year. Net income also saw a significant rise, reaching $24.11 billion compared to $21.87 billion in the same quarter last year. The growth was primarily driven by the Intelligent Cloud segment, which saw a 20% increase in revenue to $25.76 billion.

Microsoft Gaming: A Closer Look

Microsoft Gaming, a division established in 2022, has become a major player in the gaming industry. The division oversees the production and sales of Xbox hardware, Xbox Game Studios, and services like Xbox Game Pass and Xbox Cloud Gaming. With the acquisition of Activision Blizzard, Microsoft Gaming now owns some of the most popular and highest-grossing media franchises, including Call of Duty, Candy Crush, Warcraft, Halo, Minecraft, and The Elder Scrolls.

Key Highlights from Microsoft Gaming’s Performance

  1. Revenue Decline in Xbox Hardware: Despite the overall growth, Xbox hardware revenue saw a steep decline of 29% compared to the previous quarter. This decline is notable as it includes data over the holiday period, typically a strong sales period for gaming hardware.
  2. Growth in Xbox Content and Services: On a positive note, Xbox content and services revenue, which includes Xbox Game Pass, grew by 2% over the quarter. This growth was likely bolstered by popular titles like Indiana Jones and the Great Circle and continued support for Call of Duty: Black Ops 6.
  3. Publishing on Competing Platforms: Microsoft’s strategy of publishing its first-party titles on competing platforms like PlayStation and Nintendo has been a significant factor in the growth of Xbox services. Titles like Doom: The Dark Ages and The Outer Worlds 2 are expected to be released on PlayStation simultaneously.
  4. Integration with Handheld PCs: Microsoft is working on integrating the Xbox and Windows gaming experience on handheld PCs, which may include improved integration of the Windows Store and PC Game Pass.

Microsoft CEO Satya Nadella and CFO Amy Hood have expressed optimism about the future of Microsoft Gaming. They expect Xbox content and services revenue growth to be in the low to mid-single digits, driven by first-party content and Xbox Game Pass. The company is also focusing on cost efficiency and innovation in AI infrastructure, which could further boost its gaming division.

Elsewhere for Microsoft

Intelligent Cloud Segment

  • Revenue: $25.76 billion, up 20% year-over-year.
  • Azure Growth: Azure and other cloud services revenue grew by 31%, although this was slightly lower than the 33% growth seen in the previous quarter.
  • AI Investments: Microsoft is heavily investing in AI infrastructure, committing to spend $80 billion this fiscal year. The company’s AI business has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year.

Productivity and Business Processes

  • Revenue: $29.4 billion, up 14% year-over-year.
  • Microsoft 365: Continued strong performance, with significant contributions from Microsoft 365 Copilot and other productivity tools.

More Personal Computing

  • Revenue: $14.7 billion, relatively unchanged from the previous year.
  • Windows PC Sales: There was a notable increase in Windows PC sales, driven by demand for new hardware and upgrades.
  • Xbox Services: Despite a decline in Xbox hardware revenue, Xbox content and services revenue grew by 2%, supported by titles like Indiana Jones and the Great Circle and Call of Duty: Black Ops 6.

Financial Highlights

  • Total Revenue: $69.6 billion, a 12% increase year-over-year.
  • Net Income: $24.11 billion, up from $21.87 billion in the same quarter last year.
  • Earnings Per Share (EPS): $3.23, beating expectations of $3.11.

Strategic Initiatives

  • AI Infrastructure: Microsoft is focusing on cost efficiency and innovation in AI infrastructure, including investments in small language models (SLMs) to reduce AI costs.
  • OpenAI Partnership: Microsoft and OpenAI have a new agreement through 2030, giving Microsoft access to OpenAI’s intellectual property and APIs for use within Copilot.

Environmental, Social, and Governance (ESG)

  • ESG Commitments: Microsoft continues to invest in sustainability and social responsibility initiatives, aiming to balance operational discipline with environmental and social practices.

Microsoft’s FY25 Q2 earnings report showcases the company’s continued growth and strategic investments in key areas like cloud computing and gaming. While there are challenges, particularly in Xbox hardware revenue, the overall outlook remains positive, especially with the strong performance of Xbox content and services. Microsoft Gaming, with its diverse portfolio and strategic initiatives, is poised to play a crucial role in the company’s future success.

Business, Games, Gaming

Konami improves while gamers are in the expectation of Silent Hill & Metal Gear Solid

Japanese veteran Konami is the next gaming company that took its turn to announce their financial performance in the last quarter, all this during expectations for the newest games collection of Silent Hill games and the return of Metal Gear with Metal Gear Solid ∆: Snake Eater.

Read more here.