Capcom/Konami merger?

[sabre2922]

Konami/Capcom Merger in the Works?
by Christian Svensson


Friday, 16 September 2005
Statements from Konami Executive Officer in Charge of Software Business, Michihiro Ishizuka and some conclusions analysts are drawing from them are leading them to a possible pairing with Capcom.



With mergers between Bandai/Namco, Square-Enix/Taito and Sega/Sammy all happening in the past year, consolidation has been the name of the game in Japan as it is in the U.S. and Europe. Konami was once a little higher up the food chain before these mergers took place. It is currently the fourth largest game software maker in Japan.

According to Bloomberg, Ishizuka recently said "Rising costs and falling profit margins will speed up consolidation in the industry. Buying companies with know-how and infrastructure for online businesses would make a lot of sense for us."



The software business is approximately 50% of Konami's operating profit. In April, it bought Hudson, who's strength in recent years has moved to mobile distribution of games and ring tones, though it still creates videogame content as well. Konami has also bought equity in toymaker, Takara and game developer, Genki. Somewhat oddly, it's also taken a stake in People Co., a company that runs fitness centers around Japan.


Capcom is currently Japan's 6th largest game software maker, though it's expected to post a loss in the upcoming quarter. According to the Bloomberg report, Capcom is the ideal target because any other larger player in the space would be worth more than Konami could swallow.


"Capcom is probably the most likely candidate for acquisition or merger out of the remaining large companies. The company is in a difficult situation financially," said Takada, an analyst at Cosmo Securities Co. in Tokyo. "The most effective of possible combinations for Capcom would be if Sega Sammy bought the company.




Source: Bloomberg


hmmmm wonder if this will actually happen?

[Gemini-Phoenix]

Well, Capcom seem to be struggling lately against the big boys according to the figures, with Konami, Square~Enix, EA, and THQ being nearer the top of the table, and Capcom nearer the bottom. If this was premiership football, Capcom would be near the relegation zone...

Could make for some interesting games if they were to merge, but would feel very weird indeed. At least when Squaresoft and Enix merged, it was generally accepted as both companies have been rivals for years, and produce the same sort of games (Mostly RPG's)


But this is slightly different ~ This is like the BBC merging with ITV to take on the Sky network


So I guess as it's a "Merger" both companies will still exist and keep their relative names? Or would it be called Kon-Cap or Capcom-Konami?

I understand small compaines being taken over (Ie, Psygnosis by Sony) but this is much larger stakes and much larger companies

[njiska]

Personally I think you'd be more likely to see a merge between Capcom and SNK/Playmore then you would see a Capcom-Konami merger.

Despite the fact that i love Konami and Capcom i'd really hate to see them merge. Konami is a quality company while Capcom likes to milk the fuck out of series and i do not wish to see Konami adapt Capcom's business style. I'd much rather see see Konami just outright buy capcom, rather then merge but that won't happen. Not unless Capcom pulls a "spirits within".

Still if the merger were to take place things wuld certainly get interesting since Capcom and Konami have such great franchises and talent under their belts.

[Blanka789]

Isn't SNK Playmore now a division of Sega Sammy productions? I might be wrong on that, but it seems like I heard it somewhere.

[Jorpho]

Well, Capcom seem to be struggling lately against the big boys according to the figures, with Konami, Square~Enix, EA, and THQ being nearer the top of the table, and Capcom nearer the bottom.

Wha? THQ? Are they not generally known for putting out products that are somewhat lacking in quality?

[rayearthknight]

Wha? THQ? Are they not generally known for putting out products that are somewhat lacking in quality?

I thought that honor was bestowed upon EA.

[Necromutant]

I believe that SNKP is still really its own deal, but does have some strong ties w/ Sammy/Sega with various projects like the AW support by SNKP and the manufacture of the Neo Geo PS2 controllers on the part of Sega for SNKP... But I think that they are just partners not part of Sammy.

I would hate to see SNKP become part of any company other than Sammy actually, I would expect Capcom would be the dominate force in a merger like that and would probably kill a a good bit of SNKPs 2d support in favor of moving more and more titles to 3d. If anything I would rather see SNKP merge with Sammy/Sega as they seem to appreciate their nitch in 2D.

[Zing]

Wow this is some serious speculation.

The quote states "Buying companies with know-how and infrastructure for online businesses would make a lot of sense". Is this a quality Capcom has? Not that I know of.

On a side note: Anyone but Capcom, please. :/

[poloplayr]

So I guess as it's a "Merger" both companies will still exist and keep their relative names? Or would it be called Kon-Cap or Capcom-Konami?


In a merger the two legal entities would merge and the acquired company would cease to exist and become a part of the acquiror. In a straight acquisition, the target would still exist but be a subsidiary of the buyer.

[mcarocks2003]

It won't happen, it's as CRAZY as the Sega merging into Microsoft rumour of last year.