Reading Global(2022.02.11)
Leading the reconstruction of the game industry power map Japanese companies have been unable to "pass the pass"?
Japan Economic News reported on the 11th that Microsoft in the United States will invest nearly 8 trillion yen to acquire large American game companies. This is the largest merger (M&A) in the company's history. Netflix in the United States will be involved in game distribution, etc., and the trend of reconstructing the industry map of growth markets is becoming more and more active. However, Japanese companies are somewhat sidelined. Due to the slow development of Online Games in Japan and barriers such as laws and regulations, the task of leading the reconstruction of the territory of forces is already an insurmountable "game" for Japan.
Judging from the sales of the game business of each company, Japan has many powerful companies such as Nintendo and Sony Group. However, in the game of reaching the hundreds of millions of yuan, there are no games for Japanese companies, but games for companies such as the United States, China and Singapore.
There is also a big gap between Japanese companies in areas such as finance and corporate performance, as well as their influence in the consumer market. There are three main reasons.
First, Japanese companies are obsessed with successful business models in the past. Japanese gaming companies have ushered in an era by developing and selling specialized gaming consoles for home use and their software. Growth is now being in the download of software to the computers and smartphones at hand to play games online. There are also many games that take the "Free to Play" approach that are free to play at the beginning, and there will be a small amount of large-scale charges in the later stages. Especially in emerging market countries such as Asia, the lower the threshold for starting, the more popular it is. Contrary to the existing Japanese model.
Second, Japanese companies are not sensitive enough to the trend of "viewing (of games)". On video-sharing sites outside of Japan, the "live streaming" culture of many people watching other people play games is very developed. This culture helps to host large-scale competitions and drive the "eSports" boom, thus nurturing online games. Japanese games are influenced by anime and manga, and as stories are colorful, the producers do not like to "spoilers" on video websites. This is at odds with the mechanics of the internet age to expand fans. The way creators promote stories and characters is also at odds with the user-centric 21st century game culture.
The third is the issue of the legal system. In order to participate in the competition, gamers, including professional players, have to train hard every day. Japan regulates the opening of game halls through the Customs and Business Law. If a facility or venue used for training, competition, and competition viewing is designated as a "game hall," it is subject to the Customs and Business Act.
In addition, it is said that if the participation fee paid by the contestant is used as a prize money instead of the operating fee, it will violate the gambling crime in the Japanese Criminal Law. According to the organizers, if the income from the participation fee increases too much, it will violate the law, so the number of participants will sometimes be reduced.
In addition, depending on the size of the bonus amount and whether the company is responsible for the bonus or a third party, there may be violations of Japan's "Gift Representation Act". It is said that there have even been incidents in which underage contestants have been deprived of their prize money.
The Japan Electronic Sports Federation (JeSU) also pointed out that due to the existence of these three regulations, "it has always felt that it is difficult to expand the field of e-sports."
Too much restriction on various competitions has also hindered the transformation of the Japanese game industry to online games. Game lovers in Japan turn their attention to overseas games and participate in world competitions through online means. The domestic market, which is supposed to lay the foundation for Japan's game industry, is shrinking and becoming increasingly islanded.
Rovio reports that the Angry Birds game is growing again
Reuters reported on the 11th that Rovio, a Finnish game manufacturer known for the "Angry Birds" series, reported on the 11th that its operating profit in the fourth quarter was increased by the growth of the top three games.
"Our top three games, Angry Birds 2, Angry Birds Dream Blast, and Angry Birds Friends, all grew year-over-year," the maker said. ”
Rovio said it expects strong revenue growth this year, but its adjusted operating profit will decline year-over-year due to investment in new game development and marketing.
Rovio is seeking growth from a diversified portfolio, acquiring Turkish gaming company Ruby Games in August and creating new mobile games for Moomins (cartoon characters) through a partnership.
Alex Pelletier-Normand, CEO of Rovio, said in a statement: "We will continue our M&A efforts aimed at establishing new avenues of growth in casual games, expanding our network of audiences, and creating value through synergies between our game portfolio and studios." ”
Rovio reported a quarterly operating profit of 13.1 million euros from October to December, an increase of about 75 percent over the same period last year.
Rovio's Board of Directors has proposed a dividend of €0.12 per share.
Growth rate of net profit of semiconductor equipment manufacturers: Japan is in the top 4
Nihon Keizai Shimbun reported on the 11th that from the performance of 9 global semiconductor manufacturing equipment large companies such as Tokyo Electron in the latest fiscal quarter, all companies achieved year-on-year profit growth. The entire industry is boiling with pomp and circumstance, with Japanese companies at the forefront of profit growth.
Due to the high proportion of parts purchased by these companies in Japan and the continuous increase in production capacity of suppliers, the delivery of equipment has progressed. Profit margins have also improved significantly.
(Screenshot source: Nihon Keizai Shimbun)
Tokyo Electronics' consolidated financial results for the october-December 2021 period released on February 10 showed a net profit of 110 billion yen, an increase of 2.4 times that of the same period last year. Consolidated net profit for fiscal 2021 (ending March 2022) is also expected to increase by 71% year-on-year to JPY 416 billion, an increase of JPY 16 billion from previous estimates, a record high. The company set the final dividend at 693 yen, an increase of 52 yen from previous expectations, and the annual dividend was 1336 yen (781 yen in the previous fiscal year).
With the expansion of demand for a wide range of semiconductors, such as logic semiconductors for computing, from the most sophisticated to the technologically mature, sales of major products such as "coating developing devices" that coat and develop photosensitive agents on semiconductor wafers are strong. In particular, after October, increased investment in memory chip equipment by Chinese semiconductor manufacturers has pushed up Tokyo Electronics' profits.
Global semiconductor equipment companies maintained strong performance. The combined net profit of nine large companies, including Applied Materials (AMAT) and asMA (ASML) in the Netherlands (ASML), reached $7.2 billion in October-December (some november-January, market expectations), an increase of 50% over the same period last year. Profit growth for 9 consecutive quarters.
Among them, in terms of profit growth rate, Japanese companies surpass overseas companies. Judging from the ranking of the net profit growth rate of 9 companies, the top companies are occupied by Japanese companies, and the profit growth rate of Japan's SCREEN Holdings and ADVANTEST is more than 2 times. Japanese companies are also outpacing overseas companies in terms of revenue growth rate. Companies needed to cope with the increase in orders due to the expansion of the market, but Japanese companies successfully promoted production and supply by ensuring parts and components in the first place. This led to an increase in operating income and an expansion of profits.
Inventory management has also become an important factor. Japanese companies have a tendency to prepare more inventory in response to unexpected events such as disasters. Inventory will lead to increased costs, and it is considered better to keep inventory to a minimum, but in the case of chaos in the supply chain, inventory has a positive effect.
Samsung is involved in the Hollywood Park Integrated Development Project in the United States
Yonhap News Agency reported that Samsung Electronics said on the 11th that the company joined the "Hollywood Park Technology Partner Alliance" and will participate in the comprehensive development project of Hollywood Park in the United States.
Located at the Hollywood Racecourse, Hollywood Park is currently building NFL stadiums, hotels, shopping malls, office buildings, performance venues, parks, residential buildings and other facilities through large-scale urban development projects, with a total area of about 1.214 million square meters. The project will be completed in 2025, when it is expected to become the most representative entertainment space in Los Angeles, and the 2028 Los Angeles Olympic Games will also be held here.
Samsung Electronics' commercial display products are used in the Hollywood Park project, covering retail, office, residential, sports and entertainment fields. In addition to Samsung Electronics, Google Cloud, YouTube, Verizon Telecom, Deloitte, Cisco and other companies have also joined the Hollywood Park Technology Partner Alliance.
In addition, as part of the project, Samsung Electronics has already provided an "infinity Screen" to the Los Angeles landmark "SoFi Stadium" in August 2020.
(This article is compiled from Nihon Keizai Shimbun, Reuters, Yonhap News Agency)
Economic Observation Network intern reporter Zhou Yuqing sorted out