Hideo Kojima leaves Konami Digital Entertainment to setup own studio

Hideo Kojima, aka the producer of the hit console title Metal Gear Solid has announced a new studio called, “Kojima Productions”. The divorce between Konami Digital Entertainment has been well documented in 2015.

For those readers that don’t really know the narrative, Konami has been going through a self identity crisis for the past 15 years as the gaming industry evolves and Konami has struggled to keep up with the changes.

During the console era in the early 2000’s Konami decided to diversify its portfolio by building business’ outside the gaming market.  One of the more successful ventures they experienced was their athletics division, where “only” in Japan Konami Sports operates a gym membership based business. This business has been so successful that your average Japanese person recognizes Konami as more of a gym club than a gaming company. /akward

During the social mobile boom where Dena and Gree were reporting over $2 billion dollars of revenue a year, Konami changed the gaming market as they were the first to introduce the every popular monetization mechanic the “Gacha” system with their massively hit game “Dragon Collection

As the gaming market changes into a more advanced analytics based industry, from a creative industry, Konami is having a hard time justifying the console industry’s big budget development timeline and even bigger marketing cost, especially when the console market is consolidating.  Word has it that these are the reason what was causing the tension between Konami and Kojimas Division.  Development cost for the recent Metal Gear Solid 5 went extremely over budget, and for anyone who understands this industry, marketing spend usually matches the cost of development cost or more.  and if your dev cost is rumored to exceed over $150 Million, than this raises a lot of eye brows on the executive level.

It seems as if the Konami gaming division recently has been split into 2, where the social mobile division and console division are quietly developing their own games, and it looks like Konami has decided to go their separate ways with Mr. Kojima as they chose not to renew his contract.

This left the door open for Sony to invest into Mr. Kojima’s network and announced their partnership with his new studio “Kojima Studios”

It’ll be interesting what Sony and Mr. Kojima come up with in the next few years and i wish them the best of luck., which ever platform they decide to release on.

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  • 15+ year mobile application industry veteran, probably product managing multiple apps. If he's not busy running this website, you can probably find him at the gym shooting half court shots, while playing the latest mobile rpg game.

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