Konami Q3 Fiscal 2025 Performance Analysis

Based on my research, I can provide a comprehensive analysis of Konami’s Q3 fiscal 2025 performance and the sustainability of its growth trajectory.

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Konami Group Corporation reported a

to ¥353.02 billion ($3.2 billion) for the nine months ended December 31, 2025 [1]. For the full fiscal year 2025 (ending March 31, 2025), the company achieved even more robust results with , representing a and exceeding its revised guidance of ¥412 billion [2][3]. Operating profit rose 27% to ¥101.9 billion, with net profit increasing 26.2% to ¥74.7 billion [3].

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Konami operates four distinct business segments, with the

segment serving as the primary growth engine [4]:

• FY2025 Revenue:
  ¥305.2 billion (+22.5% YoY)
• Share of Total Revenue:
  Approximately 72%
• H1 FY2026 Revenue:
  ¥168.8 billion (+28.2% YoY)
• Operating Profit Margin:
  Approximately 36.4%

This segment encompasses mobile games, console games, and card games, including flagship franchises:

Franchise	Performance
Yu-Gi-Oh! Master Duel	Estimated $25-30M monthly revenue; ~$130M annual revenue in mobile card game segment
eFootball (PES)	Major mobile revenue driver with regular $25-30M/month
Metal Gear Solid	65.1 million copies sold series-wide (as of September 2025)
Silent Hill	13 million copies sold series-wide; Silent Hill f sold 1 million units on launch day (September 2025)

• FY2025 Revenue:
  ¥42.7 billion (+7.4% YoY)
• Operating Profit:
  ¥7.5 billion (+16.3% YoY)
• FY2026 Guidance:
  ¥43 billion

This segment focuses on gaming machines and casino management systems (CMS), with stable performance in North American and Australian markets due to new slot machine introductions [5].

• FY2025 Revenue:
  ¥27.6 billion (+4.6% YoY)
• H1 FY2026 Revenue:
  ¥14.5 billion (+33.9% YoY)

This segment covers arcade machines and related entertainment products, showing strong momentum in H1 FY2026.

• FY2025 Revenue:
  ¥48.5 billion (+1.9% YoY)
• FY2026 Guidance:
  ¥49 billion

This segment operates sports facilities and fitness classes, representing a stable but lower-growth business line.

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Konami owns some of gaming’s most recognizable intellectual properties. The company has committed to an to maintain brand visibility [6]. Key upcoming/recent releases include:

• Metal Gear Solid Δ: Snake Eater (remake of the classic)
• Silent Hill f (new installment)
• Silent Hill: Townfall (in development)
• Yu-Gi-Oh! TCG expansions

Konami’s mobile titles, particularly Yu-Gi-Oh! Master Duel and eFootball, generate consistent recurring revenue through in-app purchases and collaborations [7]. Mobile games account for approximately 50% of the global gaming market, positioning Konami favorably.

With four distinct segments, Konami reduces dependency on any single market:

• Digital Entertainment (72% of revenue)
• Sports (12%)
• Gaming & Systems (10%)
• Amusement (6%)

The Gaming & Systems segment benefits from continued casino expansion in North America and Australia, with ¥43 billion target for FY2026.

The global gaming industry faces significant competition from major players:

• Sony (45% console market share)
• Nintendo (27% console market share)
• Microsoft/Xbox (23% console market share)
• Tencent (dominant in mobile gaming)

Konami, while profitable, operates as a mid-tier publisher compared to these giants [8].

AAA game development costs continue to escalate. Industry reports indicate that production timelines and budgets are under pressure, potentially impacting margins unless managed effectively.

The mobile gaming space is highly competitive with established players like Tencent, NetEase, and Activision Blizzard dominating. Konami’s mobile success relies on maintaining engagement with existing titles and launching successful new products.

Konami’s console releases depend on Sony (PlayStation) and Microsoft (Xbox) platforms, creating some dependency risk on hardware cycles and platform policies.

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Konami has provided

(+2% YoY), with business profit expected at ¥114 billion [2]. Key expectations include:

• Digital Entertainment: ¥310 billion
• Gaming & Systems: ¥43 billion
• Sports: ¥49 billion

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Konami’s 13.6% Q3 revenue growth is primarily driven by its

, fueled by strong performance in mobile games (Yu-Gi-Oh! Master Duel, eFootball) and successful console franchise revivals (Silent Hill 2 remake, Metal Gear Solid Δ). The growth appears , as:

1. Strengths:
   Strong IP portfolio, mobile revenue stability, diversified business model, and committed franchise investment strategy
2. Challenges:
   Intense competition from larger publishers, rising development costs, and platform dependencies

The company’s focus on leveraging nostalgic franchises through remakes and new releases, combined with a multi-studio development approach for franchises like Silent Hill, positions it well for continued growth. However, achieving the 22% YoY growth rates seen in Digital Entertainment will become increasingly difficult as comparisons stiffen and competitive pressures persist.

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[1] Investing.com - “Konami reports 13.6% revenue growth in Q3 fiscal 2025” (https://www.investing.com/news/company-news/konami-reports-136-revenue-growth-in-q3-fiscal-2025-93CH-4472024)

[2] Konami IR Data - FY2026 Q2 Financial Results (https://www.konami.com/ir/en/ir-data/meeting/2025/en1030_d86ne2.pdf)

[3] Konami IR Data - FY2025 Consolidated Financial Results (https://www.konami.com/ir/en/ir-data/statements/2025/en0508_28h9rg.pdf)

[4] Marketscreener - “Konami FY2025 Consolidated Financial Results” (https://www.marketscreener.com/quote/stock/KONAMI-GROUP-CORPORATION-6491328/news/Konami-FY2025-Consolidated-Financial-Results-49872166/)

[5] Gambling Insider - “Konami FY25: Casino division revenue up 7.4% to JPY 42.7bn” (https://www.gamblinginsider.com/news/29383/konami-fy25-casino-division-revenue-up-7-4-to-jpy-42-7bn)

[6] Wccftech - “Konami Is Aiming to Release a New Silent Hill Game in 2026” (https://wccftech.com/konami-aiming-to-release-new-silent-hill-game-each-year-to-keep-buzz-constant/)

[7] Naavik - “Konami is Thriving on Nostalgia” (https://naavik.co/digest/konami-is-thriving-on-nostalgia/)

[8] Grand View Research - Gaming Console Market Analysis (https://www.grandviewresearch.com/static/img/research/video-game-market-size.webp)