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Namco Bandai game segment records annual losses ... but Ben 10 sales soar!
Namco Bandai's "Content" segment, which combines its video game software and arcade machine products, recorded ¥6.86 billion ($74.68 million) in operating losses for the fiscal year ending March 31, 2010. The division proved the most costly for the company, which also runs a successful "Toys & Hobby" segment, in addition to several other businesses. Overall, Namco Bandai suffered ¥29.08 billion ($317.28 million) in net losses for fiscal 2010, but the company forecasts a modest turnaround in net income of ¥4.5 billion ($49.1 million) for the current fiscal year. The games segment, which this fiscal year includes the previously separate "Visual and Music Content" division, is forecast to post ¥3.5 billion ($38.19 million) in operating income over the next four quarters; aided by an estimated 90 game releases, which are predicted to bring in ¥88 billion ($960 million) in sales. In fiscal 2010, Namco Bandai software sales, which encompassed 86 titles (or 225, if you're counting localized versions), totaled 22.737 million units and ¥77 billion ($840 million); with portable games accounting for a significant 9.701 million units sold. Multiplatform versions of Ben 10 Alien Force and its sequel, Ben 10 Alien Force: Vilgax Attacks, in the US and Europe during the fiscal year, combined to sell 1.89 million copies alone. The console version of Tekken 6 was the publisher's only title to move more units than either of those two Ben 10 games. A third Ben 10 title, Protector of the Earth, added another 610,000 units sold in the fiscal year. Across all Namco Bandai products, "Ben 10" the franchise racked up ¥17.9 billion ($195.3 million) in sales. Not quite Mobile Suit Gundman numbers (¥34.6 billion), but still. Head past the break for the complete list of Namco Bandai's top-10 bestsellers and sales distribution by platform.
Activision Blizzard doubles profit in first quarter of 2010
Activision Blizzard beat out its own revenue estimates during the first quarter, taking in a whopping $1.3 billion in revenue. The company raised its forecast last month after the incredible launch of the Modern Warfare 2 "Stimulus Package" on Xbox 360, along with continued demand for MW2 and, naturally, that World of Warcraft phenomenon. The company earned $381 million in profit, generating over double the $189 million in profit it took in the same quarter last year. Activision plans to release Blur, Singularity, Shrek Forever After and Transformers: War For Cybertron over the next quarter. With that said, the company expects to bring in about $900 milllion -- lowering its expectations from the same quarter last year. The company maintains it'll still generate $4.2 billion in revenue for the year -- on par with last year -- but that could be the company just being coy (can a company be coy?) with Starcraft 2, Call of Duty: Black Ops and maybe, just maybe, World of Warcraft: Cataclysm this year.
THQ records turnaround fiscal year, still loses $9m
THQ lost $9.6 million in its 2010 fiscal year (ending March 31), but that's nothing compared to the $431.1 million it lost the previous fiscal year. Yeah, we'd say this qualifies as a decent start in the company's proposed turnaround. THQ's software sales rose 8 percent this past fiscal year, which begin in April 2009, to $899.1 million, having established, as CEO Brian Farrell puts it, "three major core game franchises" in UFC, Darksiders and Red Faction. In a conference call this afternoon, Farrell described fiscal 2010 as the company's turnaround year. Fiscal 2011 will be its "rebuilding" year, according to the CEO, and then 2012 should see the establishment of the fully operational and financially profitable "New THQ."
RIM's earnings just shy of expectations, expects boost next quarter
The latest quarter of earnings reported by RIM today was a bevy of pretty good news sprinkled in around one moderately negative piece -- quarterly revenue -- which missed the consensus estimate of $4.31 billion by about $230 million. Otherwise, though, the company set a new record for quarterly BlackBerry activations, raking in 4.9 million new accounts to bring the total to 41 million, and annual revenue grew 35 percent to $15 billion versus the year prior. Notably, co-CEO Jim Balsillie chimed in to say that the company is "off to a great start in fiscal 2011 and expect strong shipments, revenue, subscriber and earnings growth in Q1" to the tune of somewhere between $1.31 and $1.38 a share, which beats analyst estimates, so these guys must really like what they've got in store for the all-BlackBerry, all-the-time WES show in Orlando next month. That said, the company still closed down a little over a percent in trading today, so the bottom line -- missing your numbers for the quarter -- clearly counts for something.
Take-Two revenue up $14m, laying off 15% of execs
Take-Two has released its fiscal 2010 Q1 financial report, dropping always thrilling financial news on us about the company's performance between November 1, 2009 and January 31, 2010. Aside from a $13.8 million year-over-year increase in net revenue ($163.2 million this year over $149.4 million last year), Take-Two also reports a diminished net loss (again, year-over-year) to the tune of $20 million. Take-Two also updated investors on current sales of several games and franchises, with GTA IV chocking up "over 15 million units globally" to date, NBA 2K10 already shipping "over 2 million units," and Carnival Games accruing 6 million units sold worldwide across both Wii and DS platforms. That's gotta be helping with that improved bottom line, eh? Aside from those highlights, the investor report additionally notes plans for "a targeted restructuring of its corporate departments," resulting in a "15 percent reduction in corporate headcount." More shocking, the "restructuring" (read: layoffs) will amount to "approximately $8 million in savings in fiscal 2010." Holy cow!
Activision reports $113m in profits for 2009; 2010 game plan is predictable
Today Activision Blizzard reported the financial results of its December quarter and the entire 2009 calendar year. For the year, Activision recorded a net income of $113 million, a modest turnaround from the $107 million in net losses for the company in 2008. Led by sales of Modern Warfare 2, all signs -- at least, this one -- pointed to an outstanding Q4 for the publisher. However, figures released today indicate that Activision actually posted a $286 million net loss during the period. "Despite these challenging times, in 2010 we remain focused on expanding operating margins by growing our high-margin digital/online revenues, directing our resources to the largest and most profitable opportunities and realizing operational efficiencies globally," CEO Bobby Kotick said. "In calendar year 2010, we expect our net earnings and operating margin growth will be driven by our product slate that includes Blizzard Entertainment's Starcraft II and the World of Warcraft expansion pack, Cataclysm, as well as a diversified lineup based on Activision Publishing's best-selling franchises including Call of Duty, Guitar Hero and Tony Hawk, together with other well-known titles such as True Crime, Spider-Man and Bakugan." While few details were give about Activision's pending slate of sequels, spinoffs and possible reboots, Mike Griffith, President and CEO of Activision Publishing, did share a few words about the next True Crime game. "We'll be releasing a game in the $4 billion action genre, based on our True Crime franchise," Griffith said. "The game blends intense Hollywood-style driving with martial arts combat and shootouts to deliver an Asian cinema-inspired action thriller. This is a big open-world action game that looks especially strong." Griffith also confirmed that a new 007 game is still in the works for 2010. Additionally, Activision noted that two new IPs are in development for its 2010 lineup and assured that additional DLC will continue to be released for Guitar Hero 5 (and presumably Band Hero), as well as for DJ Hero. The next installments in both music game franchises, Guitar Hero and DJ Hero, are due in "the back half of the year," according Griffith. Activision also announced that it has ceased developing new Guitar Hero games for the PlayStation 2 platform. Aw, shucks.
Disney Interactive to be more 'judicious' with HD games as losses abate
Though Disney's gaming division saw improved operating results during the company's first fiscal quarter of 2010 (which ended January 2) -- a loss of $10 million compared to a $45 million loss in Q1 the previous fiscal year -- CEO Robert Iger has maintained a prudent stance on upcoming projects. "Disney-branded games seem to perform better on the Wii and DS platforms," he noted during a recent investor call (via Computerworld). It seems Disney will continue to target non-Nintendo platforms, but with fewer shots and steadier aim. "While we'll continue to make high-end games, we'll be very judicious in how many we make and which ones we choose," Iger said. Iger is also likely to keep an eye on the performance of upcoming "high-end" titles like Tron Evolution and Black Rock Studios' Pure follow-up, Split/Second. And if neither of those work, you send in the spandex. "We have some interesting opportunities with Marvel," he said. "That's a brand we think would do extremely well on higher-end consoles." Source: ComputerWorld [via GamesIndustry.biz] Source: The Walt Disney Company Q1 results
EA loses $82 million in fiscal Q3 2010, revenue down 25%
Right off the bat, you should know this: for EA, losing $82 million in the third quarter of a fiscal year is an enormous improvement. Compared to the same period last year ("Q3" for EA is October 1 – December 31), the company lost 559 million fewer actual physical dollars. Yes, really. Now that we've told you that, we should also note that the publisher pulled in 24.85 percent less revenue year over year (down to $1.243 billion in Q3 2010 from $1.654 billion in Q3 2009). That said, Playfish had "two of the top ten Facebook games" for the quarter! Good thing EA spent $300 million on those folks, eh? Okay, okay, real talk: the company also points out that it was the "#1 packaged goods publisher in North America and Europe" for its entire fiscal year. CEO John Riccitiello even notes that Mass Effect 2 is "the first blockbuster of 2010." And hey, with 2 million units already shipped, we tend to agree.
Bayonetta moves 1.1m units in Sega fiscal Q3 2010 results
After surviving harrowing losses of ¥22.8 billion (nearly $254.8 million) during its fiscal year 2009, Sega Sammy Holdings (parent company to Sega, which you've probably sussed out) has managed to revive its faltering bottom line. According to the company's latest financial report, Sega Sammy brought in a net income of ¥16.9 billion ($189.5 million) during the first nine months of its fiscal 2010 (April–December 2009). This income came in spite of the fact that Sega's total game sales had dropped 13 percent from the same 9-month period the previous fiscal year -- however, thanks to the company's massive restructuring last February, operating income skyrocketed to ¥28.8 billion (about $323 million), which more than softened the blow. The company's highest-selling title was, alarmingly, Mario and Sonic at the Olympic Winter Games, with 5.6 million units sold (and probably counting). Bayonetta, which was only available in Japan (released October 29) during the period covered by the report, came in a distant second with 1.1 million units sold. It looks like the company's managed to recover from an extremely painful fiscal 2009 -- at a cost.
Capcom Q3 2009 financials reveal monster sales of Monster Hunter Tri
If you're anything like us, you immediately tore into the recently released Capcom Q3 2009 financial report looking for the number of Mario Party Fushigi no Korokoro Catcher arcade machines the company sold in the last nine months of 2009 (80, in case you were wondering) only to find a wealth of information about the publisher's other games. For instance, worldwide sales (sell-in, not sell-through, mind you) of Bionic Commando crept over 700k, while Monster Hunter Tri moved 1.15 million in Japan alone -- we worry deeply for the monsters of Japan, being hunted relentlessly by all of those people. At this point in the post, we'd like to point out that these numbers are for the nine months ending December 31, 2009, and thusly don't reflect January's sales. Also, things are about to get really boring. The Japanese publisher is reporting a 5.9 percent increase in net sales for the nine month period, and boasts an 84.3 percent increase in "operating income compared to the same term in [Fiscal Year 2008]," which is to say sales increased by ¥49,987 million from the same time period last year (netting ¥1,731 million). Whew - glad we got through that! Capcom itself doesn't ruminate on the numbers too much either, saying "only a few flagship software titles were released from our home video game division, while both arcade operations and content expansion were weakening." Unfortunately for us, there's still no word on the US arrival of Mario Party Fushigi No Korokoro Catcher. Source -- Capcom 3rd Quarter Financial Results (warning: PDF) Source -- Capcom 3rd Quarter Financial Results press release
DS sells 125 million worldwide, Wii up to 67 million
Nintendo announced its earnings for the nine-month period from April to December 2009, reporting a 23.8% year-over-year drop in net sales from the same period in 2008 but still claiming "the third best corresponding performances in company history." That's the extremely mild downside of the kind of crazy success Nintendo's been experiencing: even slightly less crazy success sounds bad. The company also announced new sales totals for its hardware. The DS sold an additional 23.35 million units worldwide in April-December 2009, for a worldwide life to date total of 125.13 million. Wii is now up to 67.45 million worldwide, having sold 17.05 million units. Both of those totals are, again, down from Nintendo's 2008 sales, while also being ridiculous. You can see the full chart of Wii and DS sales, as well as software sales, all broken down by region after the break.
Ubisoft to 'refocus' on Xbox 360, PS3 and 'major franchises'
As Ubisoft today sent its financial forecast soaring downward for the fiscal year ending March 31, 2010, CEO Yves Guillemot pledged to steer the company away from the suffering casual market. Specifically, "with a view to further reducing our exposure to the DS, we intend to continue to refocus our development resources on our major franchises and on the Xbox 360 and PS3, the two consoles which are expected to see sales growth in games for gamers in 2010," Guillemot said. For the fiscal 2009-10 year, Ubisoft has revised its sales target to €860 million (roughly $1.25 billion) -- down from an estimated €1,040 million -- resulting in an anticiapted €50 million operating loss. The publisher cited a near 50 percent year-over-year drop in casual game sales as the leading cause for the revised financial target, despite "robust" sales of casual Wii games (especially sales of Just Dance). Poor retail performances by James Cameron's Avatar: The Game and unspecified "non-casual" Wii titles, along with weak back catalog sales, were also to blame. The last-minute delays of Splinter Cell: Conviction and R.U.S.E. affect the current fiscal year, as well. As for fiscal 2010-11, Ubisoft has indeed planned a lineup of "major" franchises, including the aforementioned Splinter Cell game, along with new entries in the Ghost Recon and Prince of Persia series, in addition to a newly announced Assassin's Creed "episode," and Rabbids and Driver installments. "The 2010-11 line-up -- which is stronger in franchises for Xbox 360 and PS3 -- reflects our refocusing efforts and should enable us to both win market share and enhance our profitability," Guillemot concluded.
Take-Two strikes out with MLB games
Take-Two has released "preliminary" earnings results for its fourth quarter and fiscal year (ending October 31, 2009), blaming a $.09 a share slump on poor sales of its Major League Baseball games. It seems the publisher might have been misled by the commonly held misconception that baseball is the "national pastime" -- modern warfare has clearly seized that honor. Take-Two didn't specify which MLB titles might have underperformed, but it released The BIGS 2, MLB Front Office Manager, MLB 2K9, and MLB 2K9 Fantasy All-Stars all in 2009, and all to mediocre critical reception. 2K expects to take a $30–35 million loss on its MLB business and further adjusted its financial outlook downward following the BioShock 2 delay. While Borderlands and NBA 2K10 helped generate some revenue last quarter, Take-Two's future doesn't look to be paved in gold. "Looking ahead, we remain committed to our goal of operating profitably on a non-GAAP basis;" CEO Strauss Zelnick said. "However, we do not currently expect to achieve that goal in fiscal 2010. We have an outstanding product portfolio, exceptional creative talent and a solid balance sheet, and are confident that these strengths will provide a sound foundation for improved performance."
Report: Wii parts production shrinks
[Don Fulano] A slowdown in Wii production can only mean one thing: Nintendo has cured the injured, ailing and aged -- there's no more work left to be done. While saving the world proved vastly lucrative for Nintendo, it also benefited the manufactures behind the scenes; or, as we like to call them, the magic makers. Nikkei reports that Wii parts suppliers, Mitsumi Electric Co. and Hosiden Corp., have significantly reduced their yearly profits forecasts following a decrease in orders to assemble Wii consoles. Mitsumi predicts its net profits will fall 52 percent year-over-year to ¥5.3 billion ($61.2 million), down from the previously projected ¥7 billion. Hosiden expects a similar drop, from the forecast ¥7.5 billion down to ¥6 billion. These percentage changes are eerily similar to the figure reported in Nintendo's half-year results, posted at the end of October. Are the numbers trying to tell us something? Yep, there's still plenty of money being made and, apparently, more world to save. [Via MarketWatch] Source – "As Wii Stumbles, Parts Suppliers' Earnings Tumble" [Nikkei.com; subscription required]
Ubisoft first-half profits plummet into loss
Among the comprehensive list of numbers in Ubisoft's first half fiscal 2009-10 report, measuring performance in April through September 2009, one figure stands out: the French company's reported €52,027,000 in not-profit. That's right, Ubisoft's profits are down by more than €70 million (over $100 million) from the same period last year to rest firmly in the red. From a profitable first half of fiscal 2008-09 of roughly €24 million to just over €52 million in losses in the first half of fiscal 2009-10, Ubisoft's profits have experienced a year-over-year change of -316.53 percent. However, CEO Yves Guillemot remains steadfast that projected sales figures for Assassin's Creed 2 and Avatar will ease Ubisoft's financial woes. This is, after all, the most important Q4 in the company's history.
Funcom publishes sharp revenue drop for Q3
Funcom has released its financial results for Q3, and it's not pretty. Revenue was down 68.5% to 5.7 million USD, and expected to drop even more in Q4. This time last year they were reporting a profit of $3.3 million, a strong contrast to the current $9.6 million loss. They see a few reasons for this drop, including some stiff competition: "The Company ran a successful re-evaluation campaign during July, increasing the number of subscribers to the game. However, the launch of two major competing MMO-games during Q3 led to a subsequent reduction in subscriber levels." Funcom remains optimistic, though, thanks to numerous upcoming projects. The Secret World is reported to be "progressing well", Age of Conan is planning a launch in Korea, the "Rise of the Godslayer" expansion for AoC is on its way, and Funcom recently received a grant to create an extreme sports MMO. The full report can be viewed here.
SouthPeak earnings report reveals acquisition of ... something involving TNA Impact
Remember way back in August when THQ picked up around 40 percent of Midway San Diego (following that whole full collapse thing), but left off the TNA Impact property? It would appear that the reason for this exclusion was due to SouthPeak Games snatching up the license, as revealed by a recent Q1 2010 financial report released by the company.The "acquisition" is first noted in the report's "Highlights of the Quarter" section. "Acquired in bankruptcy certain assets owned by Midway relating to video games based on the TNA iMPACT wrestling brand." We asked SouthPeak who would be in charge of developing the next game in that series, said in the report to be released "this year" (2010), and found out that such information has yet to be announced, unfortunately. Currently, SouthPeak is only known to be publishing TNA Impact: Cross the Line for the PSP and Nintendo DS.When we explored the SEC filing from Midway on the sale, the wording got much more ambiguous. One notable exclusion from the $100k purchase is, "the TNA License and Sellers' rights thereunder." When we asked SouthPeak to clear up exactly what the company bought, we were told that, while it "can confirm the details of the release and filing," no comment is currently available – though we were assured that we'll be hearing more details "soon."
Namco Bandai posts $66.7 million loss for first half of year
Namco Bandai has reported a net loss of ¥6.04 billion ($66.7 million) for the first half of its fiscal year, which began in April. During the same period last year, the company posted a net income of ¥1.28 billion ($14.14 million). Despite this year's first-half hiccup, the publisher still expects to earn ¥8.5 billion ($93.6 million) in net income by the end of its fiscal year (ending March 31, 2010). After all, there are those 2.5 million copies of Tekken 6 waiting to be sold. Namco Bandai's software sales for the period were led by the Ben 10 franchise, as Alien Force and Protector of the Earth combined to sell approximately 810,000 units (not exactly Guitar Hero numbers, eh?). Even with Tekken 6 in its second-half roster, Namco must be pulling for a miracle. But then, the holidays are a magical time. Source – Financial Highlights [PDF] Source – Consolidated Financial Report [PDF]
Guitar Hero, Call of Duty franchises lead Activision's 'better-than-expected' Q3 2009
Look, just feign surprise, it makes these financial posts so much more exciting: Activision today reported net revenues of $755 million (on a non-GAAP basis) in the quarter ending September 30, 2009 -- that's $55 million more than the suits hoped to stack, according to previous projections. While the blockbuster adaptation of Transformers: Revenge of the Fallen might have played a part in this outpouring of our money, we're gonna go with Kotick's explanation: "Our performance was driven by positive audience response to Activision Publishing's Guitar Hero 5, Marvel: Ultimate Alliance 2, and the Guitar Hero and Call of Duty franchises, as well as Blizzard Entertainment's World of Warcraft." In fact, the CEO called Guitar Hero the year's "#1 best-selling third-party franchise in North America and Europe" through September, claiming that U.S. sales of music games increased 72 percent year over year in September. Last year's big-band-box edition, World Tour, and Call of Duty: World at War combined for total, world domination, becoming this year's "#1 and #2 best-selling third-party titles" in North America and Europe through September, according to Activision. Additionally, World at War DLC map pack sales continued to climb last quarter and have now surpassed 7.5 million purchases. Needless to say, the publisher is not backing off of its prior financial outlook. Activision anticipates annual net revenues of $4.5 billion (on a non-GAAP basis) at the close of the year. Did you remember to feign surprise?
Gameloft sales up a dramatic 18% this year
Gameloft's mobile focus is keeping the company flush with cash in these tough times. The prolific publisher announced today that quarterly sales are up 15 percent over the third quarter last year and up 18 percent in year-to-date figures compared to the same period last year. Gameloft achieved $132 million in sales, with mobile devices accounting for 95 percent of revenue; the measly remainder was earned through consoles.Gameloft tips its hat to the Apple App Store for the "huge success," as well as the company's Java and Brew games, with the expectation that sales and profitability will be up, up and away in 2009. Looking to the future, the company believes it will benefit from Apple, Nokia and Google's mobile devices. Gameloft comes from the proud tradition of releasing sales and profit reports separately, but the expectation is that profits will be positive, as well.
