Hudson Profits to Rise Fourfold due to Nintendo
April 7 (Bloomberg) –Hudson Soft Co., controlled by Konami Corp., plans to boost profit almost fourfold within three years by focusing on video-game titles for Nintendo Co.’s Wii console.
The company targets operating profit of 10 billion yen ($97 million) as early as the year to March 2011, incoming President Michihiro Ishizuka said in an interview on March 26. Tokyo-based Hudson also intends to pay a dividend for the 12 months ending March 31, the first time in five years, he said.
Hudson plans to release eight titles in 2008 for the Wii, which outsold the PlayStation 3 by three times last fiscal year in Japan, causing Sony Corp. to be dethroned as the nation’s top console maker. Hudson already has 10 Wii titles such as “Battle Lode Runner,” in which users collect gold while avoiding captivity to advance to the next level.
“The game-software industry is one of the sectors that will lead corporate earnings this fiscal year,” said Yoshihiro Okumura, who helps oversee about $365 million at Chiba-gin Asset Management Co. in Tokyo. “In particular, companies related to Nintendo have a lot of room for profit growth.”
Operating profit rose 53 percent to 2.7 billion yen in the year ended March 31, more than the company’s 2 billion yen forecast, because of stronger-than-expected game sales for the Wii and Nintendo’s DS handheld player, Hudson said March 4 in a preliminary earnings report. Operating profit is revenue minus the cost of goods sold and administrative expenses.
Hudson rose 1.8 percent to close at 1,833 yen on the Osaka Securities Exchange’s Hercules market for startup companies.
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POSTED IN: Game Studios, Japan Games Industry, Nintendo, wii
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