Report

PSA Media & Entertainment: Video Games Sector Earnings Preview

As we head into results season, Pelham takes us through the list of Japanese video game makers’ release dates and what to expect.
Underlyings
Akatsuki Inc.

Akatsuki Inc. is a Japan-based company mainly engaged in the mobile game business and live experience (LX) business in the entertainment area. The Company has a single segment of the mobile game business. The Mobile Game business is engaged in the provision of mobile games in the platform operated by Japan social networking service (SNS) operator, as well as app market provided by Apple Inc., Google Inc. and other companies.

Capcom Co. Ltd.

Capcom is engaged in the development, manufacture and sales of video games, online games, mobile games and arcade games, as well as the operation of amusement arcades. Co.'s business segments are digital contents, amusement facility and amusement equipment. Co. is engaged in the planning, development, manufacture and sales of home video games, online games and mobile games including "Rockman," "Monster Hunter World" and "Dragons Dogma"; the operation of "Plaza Capcom" amusement facilities in Japan; and the development, production and distribution of arcade games for amusement facilities. Co. is also engaged in the licensing business of game characters and the real estate leasing business.

DeNA Co. Ltd.

DeNA is engaged in the developing and operation of a wide range of mobile and online services including e-commerce, games and entertainment contents distribution. Co. operates in four business segments. Gaming business is engaged in the developing, operating and marketing mobile games. Co.'s principal "Mobage" social game platform in Japan hosts a wide range of free-to-play mobile games. E-commerce business is engaged in the e-commerce related services including "DeNa SHOPPING." Sports business owns and operates a professional baseball team "Yokohama DeNA BayStars" and operates Yokohama stadium. New business/others business is engaged in the operation of curation platform.

GRAVITY Co. Ltd. ADS

Gree Electric Appliances

Gungho Online Entertainment Inc.

GungHo Online Entertainment is mainly engaged in the planning, development, and operation of online games. Along with its subsidiaries and associated companies, Co. is engaged in the planning, development, operation and distribution of smart phone applications and online computer games, and the sale of console games. Co. is also engaged in the sale of game contents through download service as well as the licensing of self-developed games. Co.'s principal smart phone applications are "Puzzle & Dragons," "Summons Board," "Divine Gate," and "Princess Punt Sweets," and its principal online computer games are "Ragnarok Online" and "Emil Chronicle Online."

KLab Inc.

KLab is mainly engaged in the development of game applications. Along with its affiliates, Co. is engaged in the planning, development and operation of mobile online games and social network games for smartphones in Japan and overseas. Co. is also engaged in the provision of cloud computing and the operation of e-commerce sites, large-scale and high-intensity infrastructure services, and research and consulting services for mobile online games, as well as the planning and organization of variety of events hosted in Japan and all across Asia, such as stadium tours, music festivals and stage musicals.

KONAMI HOLDINGS CORP

Konami Holdings is engaged in the development, publishing, marketing and distribution of video game software products globally for stationary consoles such as Sony PlayStation 2, PlayStation 3, Nintendo Wii, and Microsoft Xbox 360, and for portable consoles such as Sony PlayStation Portable, PlayStation Vita, Nintendo DS and Nintendo 3DS, as well as for use on personal computers. In addition, Co. plans, produces, operates and distributes entertainment content for mobile phone online games. Co. classifies its businesses into four segments: Digital Entertainment, Health & Fitness, Gaming & System, and Amusement.

NEXON Co. Ltd.

Nexon is engaged in the production, development and delivering on-line games. Along with its subsidiaries and affiliates, Co. provides PC online-games and mobile games in Japan, Korea, China, North America and Europe as well as Asian countries. Co.'s principal existing game titles include "MapleStory," "Sudden Attack," "Dungeon & Fighter," "Counter-Strike Online," and "EA SPORTS™ FIFA Online 3." Co. also offers services such as consulting related to PC online-game distribution, in-game advertising, and merchandising incidental to PC online business. As of Dec 31 2017, Co. has 26 consolidated subsidiaries and 14 affiliates.

Sony Corporation

Sony is engaged in the development, design, production, manufacture, offer and sale of various kinds of electronic equipment, instruments and devices for consumer, professional and industrial markets such as network services, game hardware and software, televisions, audio and video recorders and players, still and video cameras, mobile phones, and semiconductors. Co. is engaged in the development, production, manufacture, and distribution of recorded music and the management and licensing of the words and music of songs as well as the production and distribution of animation titles. Co. is also engaged in the production, acquisition and distribution of motion pictures and television.

Square Enix Holdings Co. Ltd.

Square Enix Holdings is a holding company that is mainly engaged in the entertainment industry. Co., through its subsidiaries, operates in four business segments. The Digital Entertainment business is engaged in the design, development, sale, licensed sale and operation of digital entertainment contents focusing on computer games. The Amusement segment is engaged in the operation of amusement facilities, the design, development, manufacture, sale and rental of amusement equipment. The Publishing segment is involved in the publication of comic magazines, books and game related books. The Rights Property segment is involved design, production, sale and grant of secondary works.

Provider
Pelham Smithers Associates Ltd
Pelham Smithers Associates Ltd

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries. 

The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012. 

Analysts
Pelham Smithers

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