Konami

**Konami Holdings Corporation** (Japanese: 株式会社コナミホールディングス Hepburn: *Kabushikigaisha Konami Hōrudingusu*, TYO: 9766 OTC Pink: KNMCY), commonly referred to as **Konami**, is a Japanese entertainment and gaming conglomerate. It operates as a product distributor (which produces and distributes trading cards, anime, tokusatsu, slot machines and arcade cabinets), video game developer and publisher company. It also operates health and physical fitness clubs across Japan.

Konami is best known for their video games, including *Metal Gear*, *Silent Hill*, *Castlevania*, *Contra*, *Frogger*, *Gradius*, *Yu-Gi-Oh!*, *Suikoden* and *Pro Evolution Soccer*. Additionally, Konami also owns Bemani, known for *Dance Dance Revolution* and *Beatmania*, as well as the assets of former game developer Hudson Soft, known for *Bomberman*, *Adventure Island*, *Bonk*, *Bloody Roar* and *Star Soldier*. Konami is the twentieth-largest game company in the world by revenue.[4]

The company originated in 1969 as a jukebox rental and repair business in Toyonaka, Osaka, Japan, by Kagemasa Kōzuki, who remains the company's chairman. The name "Konami" (/koʊˈnɑːmi/; Japanese pronunciation: [koꜜnami]) is a portmanteau of the names Kagemasa **Ko**zuki, Yoshinobu **Na**kama, and Tatsuo **Mi**yasako.[5]

Konami is currently headquartered in Tokyo. In the United States, Konami manages its video game business from offices in El Segundo, California and its casino gaming business from offices in Paradise, Nevada. Its Australian gaming operations are located in Sydney. As of March 2016, it owns 21 consolidated subsidiaries around the world.[3]

## History

The company was founded on March 21, 1969 and was officially incorporated under the name Konami Industry Co., Ltd. (コナミ工業株式会社 *Konami Kōgyō Kabushiki Gaisha*) on March 19, 1973.[7][8] The company's founder and current chairman, Kagemasa Kozuki, previously ran a jukebox rental and repair business in Toyonaka, Osaka before transforming the business into a manufacturer of amusement machines for video arcades. Their first coin-operated video game was released in 1978, and they began exporting products to the United States the following year.[9][10]

Konami began to achieve success with hit arcade games such as 1981's *Frogger*, *Scramble*, and *Super Cobra*, many of which were licensed to other companies for stateside release, including Stern Electronics and Gremlin Industries. They eventually established their U.S. subsidiary, Konami of America, Inc. in 1982. It was during this period that Konami began expanding their video game business into the home consumer market following a brief stint releasing video games for the Atari 2600 in 1982 for the U.S. market.[11] The company would release numerous games for the MSX home computer standard in 1983, followed by the Nintendo Entertainment System in 1985.[12][13] Numerous Konami franchises were established during this period on both platforms, as well as the arcades, such as *Gradius*, *Castlevania*, *Twin Bee*, *Ganbare Goemon*, *Contra* and *Metal Gear*. Due to the success of their NES games, Konami's earnings grew from $10 million in 1987 to $300 million in 1991.[14]

In June 1991, Konami's legal name was changed to Konami Co., Ltd. (コナミ株式会社 *Konami Kabushiki Gaisha*) and their headquarters would later relocated to Minato, Tokyo in April 1993.[9] The company started supporting the 16-bit video game consoles during this period, starting with the Super NES in 1990, followed by the PC Engine in 1991 and the Sega Genesis in 1992.

After the launch of the Sega Saturn and PlayStation in 1994, Konami became a business divisional organization with the formation of various Konami Computer Entertainment (KCE) subsidiaries, starting with KCE Tokyo and KCE Osaka (which would be later known as KCE Studios) in April 1995, followed by KCE Japan (later known as Kojima Productions) in April 1996. Each KCE subsidiary would end up creating different intellectual properties such as KCE Tokyo's *Silent Hill* series and KCE Japan's *Metal Gear Solid* series (a revival of the *Metal Gear* series on MSX). In 1997, Konami started producing rhythm games for arcades under the Bemanibrand and branched off into the collectable card game business with the launch of the Yu-Gi-Oh! Trading Card Game.[15][16]

On July 2000, the company's legal English name was changed once again to Konami Corporation, however, the Japanese legal name remained the same. As the company transitioned into the developing video games for the sixth-generation consoles, they also branched out into the health and fitness business with the acquisitions of People Co., Ltd and Daiei Olympic Sports Club, Inc., which became Konami subsidiaries. In August 2001, Konami invested in another video game developer, Hudson Soft, which became a consolidated subsidiary after Konami accepted new third-party shares issued by them. In March 2006, Konami merged all their video game development divisions into a new subsidiary known as Konami Digital Entertainment Co. (KDE for short), as the parent company became a pure holding company. Their headquarters would be relocated once again, this time to headquarters was moved to Minato, Tokyo, in 2007.[9]

The absorption of Hudson Soft in 2012 resulted in the addition of several other franchises including: *Adventure Island*, *Bonk*, *Bloody Roar*, *Bomberman*, *Far East of Eden* and *Star Soldier*.[17][18]

In April 2015, Konami delisted itself from the New York stock exchange following the dissolution of their Kojima Productions subsidiary.[19] In a translated interview with Nikkei Trendy Net published in the following month, the newly appointed CEO of Konami Digital Entertainment, Hideki Hayakawa announced that Konami will shift their focus towards mobile gaming for a while, claiming that, "Mobile is where the future of gaming lies."[20] The trade name of the company was changed from Konami Corporation to Konami Holdings Corporation during the same month.[21]

In 2017, Konami is to publicly announce that they would be reviving some of the company's other well-known video game titles following the success of their Nintendo Switch launch title *Super Bomberman R*.[22]

## Corporate structure

### Japan

* Konami Holdings Corporation
	+ Konami Digital Entertainment Co., Ltd.
	+ Konami Sports & Life Co., Ltd.
	+ Konami Amusement Co., Ltd.
	+ Konami Real Estate, Inc.
	+ KPE, Inc.
	+ Konami Manufacturing and Service, Inc.
	+ Konami Facility Service, Inc.
	+ KME Co., Ltd.
	+ Takasago Electric Industry Co., Ltd.
	+ Hudson Soft Company, Limited: On 2011-01-20, Konami Corporation announced turning Hudson Soft Co., Ltd. as its wholly subsidiary via share exchange. The exchange became effective on 2011-04-01.[23]
	+ DIGITAL GOLF Inc.: On 2011-01-20, Konami Corporation announced the acquisition of DIGITAL GOLF Inc. via share exchange. DIGITAL GOLF would become a wholly owned subsidiary of Konami Corporation. The exchange became effective on 2011-03-01.[24]
	+ Internet Revolution, Inc.
	+ Biz Share Corporation
	+ Combi Wellness Corporation
	+ THE CLUB AT YEBISU GARDEN CO., LTD.
	+ Konami Holdings Corporation[25][26]

### Australia

* Konami Australia Pty Ltd (established in 1996)

### America

* Konami Corporation of America: Current U.S.-based holding company.
	+ Konami Digital Entertainment, Inc.: Former American holding company, formerly *Konami of America Inc.*, Konami Corporation of America. On October 13, 2003, Konami Corporation of Redwood City, California announced it was expanding its operations to El Segundo, California under the new name of Konami Digital Entertainment, Inc. The Redwood City operations have since been consolidated to El Segundo in 2007.[27]
	+ Konami Gaming, Inc. in Paradise, Nevada.

### Europe

* Konami Digital Entertainment B.V.: Current European-based holding company.
	+ Konami Digital Entertainment GmbH: Former holding company Europe, formerly *Konami Limited*, *Konami Corporation of Europe B.V.*. On March 31, 2003, Konami of Europe announced it would be renamed as Konami Digital Entertainment GmbH at the start of Konami's new financial year (2003-04-01).[28]

### Asia

* Konami Digital Entertainment Limited (科樂美數碼娛樂有限公司): Established in 1994-09-? as Konami (Hong Kong) Limited. Korea and Singapore divisions were established in 2000-10-?. In 2001-06-?, the company changed name to Konami Marketing (ASIA) Ltd. (科樂美行銷(亞洲)有限公司). On 2006-03-?, the company was renamed Konami Digital Entertainment Limited.[29][30]
* Konami Software Shanghai, Inc. (科乐美软件（上海）有限公司): Established in June 2000.[31]
* Konami Digital Entertainment Co. (주식회사 코나미 디지털 엔터테인먼트): South Korea-based game producer and distributor, originally established as the Korea branch of Konami Digital Entertainment Limited. On 2008-05-01, it became a separate company, and inherited the existing operations of the former Korea branch in 2008-06-?.[32]

On November 7, 2005, Konami Corporation officially announced restructuring Konami Corporation into a holding company, by moving its Japanese Digital Entertainment Business segment under Konami Corporation. The Digital Entertainment Business would become Konami Digital Entertainment Co., Ltd. The newly established Konami Corporation was expected to begin operation on March 31, 2006.[33]

### Konami Digital Entertainment

Konami Digital Entertainment Co., Ltd. (株式会社コナミデジタルエンタテインメント *Kabushiki-gaisha Konami Dejitaru Entateinmento*) is Konami's Japanese video game development and publishing division founded on March 31, 2006.[34] Before Konami Corporation had formally changed to a holding company in 2006, various forms of Konami Digital Entertainment companies had been established either as holding company or publisher. The last of the company, the Japan-based Konami Digital Entertainment Co., Ltd., was split from Konami Corporation during the holding company restructuring process.[*citation needed*]

#### Subsidiaries

* Konami Digital Entertainment Co., Ltd.: Japanese division, established on 2006-03-31.
* Konami Digital Entertainment, Inc.: North American division, established on 2003-10-13.
* Konami Digital Entertainment GmbH: European division, established on 2003-04-01.
* Konami Digital Entertainment Limited: Hong Kong division. Established in September 1994 as Konami (Hong Kong) Limited. In March 2006, it was renamed to Konami Digital Entertainment Limited.
* KME Co., Ltd (KME Corporation): music division established on 2010-10-01.[35]

### Former subsidiaries

Konami Computer Entertainment Nagoya, Inc. (KCEN), founded on October 1, 1996,[36] was dissolved along with Konami Computer Entertainment Kobe, Inc. (KCEK) in December 2002.[37]

On December 16, 2004, Konami Corporation announced Konami Online, Inc., Konami Computer Entertainment Studios, Inc., Konami Computer Entertainment Tokyo, Inc., Konami Computer Entertainment Japan, Inc. would merge into Konami Corporation, effective on March 1, 2005.[38][39]

On February 22, 2005, Konami Corporation announced Konami Media Entertainment, Inc. would merge into Konami Corporation, effective on March 1, 2005.[40] On March 11, 2005, Konami Corporation announced Konami Traumer, Inc would be merged back into Konami Corporation, effective on June 1, 2005.[41]

On January 5, 2006, Konami Corporation announced the merger of Konami Sports Corporation merged with its parent company, Konami Sports Life Corporation. The parent would be dissolved under the merger, and Konami Sports would become the wholly owned subsidiary of Konami Corporation after share exchange between KC and KS. After the share exchange, KS would be renamed Konami Sports & Life Co.,Ltd.[42] On February 28, 2006, Konami Sports Corporation merged with its parent company, Konami Sports Life Corporation, and became Konami Sports Corporation.[43]

On September 21, 2010, Konami Corporation announced it has signed an agreement to acquire with Abilit Corporation via share exchange. After the transaction, Abilit Corporation became a wholly owned subsidiary of Konami Corporation, effective January 1, 2011.[44][45] On January 1, 2011, Abilit Corporation was renamed to Takasago Electric Industry Co.,Ltd.[46] As part of the acquisition, Biz Share Corporation also became a subsidiary of Konami Corporation.

#### Konami Computer Entertainment Tokyo

Konami Computer Entertainment Tokyo, (*aka* KCET, KCE Tokyo, Konami TYO, and Konami Computer Entertainment Tokyo Co., Ltd.) is a former subsidiary of Konami Corporation. Konami absorbed KCET along with several of its other subsidiaries in 2005. KCET was a Tokyo-based game developer responsible for many of Konami's most notable video game franchises, including *Pro Evolution Soccer/Winning Eleven*, *Castlevania*, *Dance Dance Revolution*, *Gradius* and *Silent Hill*.

#### Konami Computer Entertainment Japan

Konami JPN Ltd., formerly Konami Computer Entertainment Japan (KCEJ), is a video game developer and subsidiary of Konami Corporation, located in Tokyo.

The development house has worked on titles for a wide variety of platforms, ranging from Game Boy to PlayStation. KCEJ is split into two different development teams, located in two offices in Tokyo. KCEJ East developed *7 Blades* as well as a number of dating sims for the PlayStation, Sega Saturn and Game Boy. KCEJ West is known for the best-selling *Metal Gear Solid*series, as well as the *Beatmania* and *GuitarFreaks* series.

On April 1, 2005, KCEJ (along with KCET and KCES) merged with its parent company. Hideo Kojima (the company's former vice president) formed his own subsidiary, Kojima Productions.

#### Megacyber Corporation

On October 2, 2006, Konami Corporation announced it had completed the acquisition of mobile phone content developer Megacyber Corporation.[47]

On February 6, 2007, Konami Corporation announced Megacyber Corporation to be merged into Konami Digital Entertainment Co., Ltd., with Konami Digital Entertainment Co., Ltd. being the surviving company, effective on April 1, 2007.[48]

### Distribution of Konami's games in Australia

Since the NES was released in Australia in 1987, Konami's games were distributed by Mattel Australia, just like the NES was. In 1994 when Nintendo Co., Ltd opened Nintendo Australia Pty Ltd, Konami's products were distributed by Nintendo Australia until GT Interactive (Infogrames) Australia was opened when they took over the distribution. GT Interactive then turned into Infogrames Australia and then Atari Australia. In early November, it was announced that Konami of Europe had granted exclusive distribution of its games in Australia to Red Ant Enterprises and was to commence distribution with them in February 2009. In early January 2009, Red Ant Enterprises went into receivership and closed down completely in May 2009, and Konami of Europe was quick to re-sign with Atari Australia after the announcement of their closure in January 2009.

## Video games

Main article: List of Konami games

Major titles by Konami include the vampire-hunting side scroller *Castlevania* series, the survival horror *Silent Hill* series, the action/shooter *Contra* series, the platform/adventure *Ganbare Goemon* series, the espionage action *Metal Gear* series, the console role-playing *Suikoden* series, the music-oriented *Bemani* series (which includes *Dance Dance Revolution*, *Beatmania IIDX*, *GuitarFreaks*, *DrumMania*, and *Pop'n Music*, among others), *Dancing with the Stars*, the dating simulation *Tokimeki Memorial* series, and football simulation *Pro Evolution Soccer*.[49]

Konami also produced its shoot 'em up arcade games such as *Gradius*, *Life Force*, *Time Pilot*, *Gyruss*, *Parodius*, *Axelay*, and *TwinBee*. Konami's games based on cartoon licenses, especially the *Batman: The Animated Series*, *Teenage Mutant Ninja Turtles*, *Tiny Toon Adventures* and *Animaniacs* series, but other American productions like *The Simpsons*, *Bucky O'Hare*, *G.I. Joe*, *X-Men* and *The Goonies* and French comic *Asterix* all have seen release at some point in the past by Konami either on arcades and/or video game consoles.

Some cinematically styled franchises from Konami are *Silent Hill* survival horror franchise, and the *Metal Gear* series, which underwent a public renaissance with *Metal Gear Solid*. Another successful franchise is *Winning Eleven*, the spiritual sequel to *International Superstar Soccer*, which is extremely popular in Asia, Latin America, Middle East and Europe, where it is sold by the name *Pro Evolution Soccer*. And in Japan, it is known for the extremely popular *Jikkyō Powerful Pro Yakyū series* baseball series and the *Zone of the Enders* games. The company has also recently picked up *Saw* from Brash Entertainment when the game's production had been suspended due to financial issues.[50]

Konami is also known for its password, the Konami Code, which traditionally gives many power-ups in its games.

## Marketing

Konami is represented by the *goroawase* number "573". "Five" in Japanese is *go*, changed to the voiceless form *ko*; "7" in Japanese is *nana* shortened to *na*; "3" in Japanese is *mittsu*, shortened to *mi*; "573" = *ko-na-mi*.

This number appears in many Konami telephone numbers and as a high score in Konami games like *Dance Dance Revolution*, (which also featured songs with a max combo of the number) as an example; in some other games like *Castlevania: Dawn of Sorrow*, the number is occasionally used as minor self-reference to the company.

In 2003, Konami started distributing game contents for mobile phones to Vodafone's customers in 13 European countries, including Britain, Germany and Italy.

### Film production

In 2006, Konami started producing movies based on their popular franchises. Konami produced the *Silent Hill* movie (released in 2006) and announced that they will produce a *Metal Gear Solid* movie.[51]

## Criticism and controversy

### *Silent Hills* and development for home video game consoles cancellation

See also: Silent Hills and P.T. (video game) § Legacy

*Silent Hills*, set to be the ninth installment of the *Silent Hill* franchise, was abruptly cancelled on April 2015 without explanation despite the critical acclaim and success of *P.T.*, a playable teaser.[52][53] Hours after the announcement, Konami delisted itself from the New York Stock Exchange.[19]

Game co-director and writer Guillermo del Toro publicly criticized the cancellation as not making any sense, and questioned what he described as a "scorched earth" approach to removing the trailer. Due to the experience, del Toro stated that he would never work on another video game.[54][55]

Konami's CEO, Hideki Hayakawa, announced that – with few exceptions – Konami would stop making console games and instead focus on the mobile gaming platform; a decision that was heavily criticized by the video gaming community.[56][57][58][59] However, Konami UK's community manager, Graham Day, has denied the claims that it was exiting the console industry.[60]

### Kojima Productions

Further information: Kojima Productions § Closure

On March 3, 2015, Konami announced they would be shifting focus away from individual studios, notably Kojima Productions. Internal sources claimed the restructure was due to a clash between Hideo Kojima and Konami.[61][62] References to Hideo Kojima were soon stripped from marketing material, and Kojima's position as an Executive Vice President of Konami Digital Entertainment was removed from the company's official listing of executives.[63]

Later that year, Konami's legal department barred Hideo Kojima from accepting *Best Action-Adventure* for his work on *Metal Gear Solid V: The Phantom Pain* at The Game Awards 2015. When announced during the event, the audience booed in disapproval of Konami's actions. Host Geoff Keighley expressed his disappointment in Konami's actions. After actor Kiefer Sutherland accepted the award in Kojima's stead, a choir played *Quiet's Theme* from *The Phantom Pain* as tribute to the absent Kojima.[64][65][66][67] Kojima left Konami several days afterwards, re-opening Kojima Productions as an independent company.

#### *Metal Gear Solid V*

The company was widely criticised for distributing the PC retail release of *Metal Gear Solid V: The Phantom Pain* with a disc containing an 8 MB Steam installer, leaving the player to download the 28 GB of game content.[68][69][70]

### Treatment of employees and ex-employees

In August 2015, *The Nikkei* criticized Konami for its unethical treatment of employees.[71][72][73] In June 2017, *The Nikkei* further reported of Konami's continued clashes with Kojima Productions, preventing the studio's application for health insurance, as well as Konami's actions in making it difficult for former employees to get future jobs.[74][75]