In the amusement arcade operation field, Namco continued its policy of closing unprofitable arcades in Japan. It did however open three new amusement centers, including "Namco Wonder Park" in Fukuoka. It includes a bowling alley and batting center and is Kyushu's largest amusement center. While Namco closed 14 arcades in the USA, it continued to increase the number of its centers in Europe and Asia. In spite of these steps, sales only amounted to JPY36,900 million with a profit of JPY900 million.
In arcade game sales, Namco's efforts in the USA were hit by the backlash against violent games. Sales of the gun game "Crisis Zone" were much lower than expected. In Japan, Namco had no hit game throughout the year. Sales for this business section were JPY8,800 million with a loss of JPY800 million.
In the home games field, Namco pinned their hopes on the puzzle game "Mr. Driller". Versions for various platforms including PlayStation, Dreamcast, Color GameBoy etc. were developed but it did not do well. Results for the home game section were sales of JPY7,000 million and a profit of JPY100 million.
If there is any bright spot on the horizon for Namco, it is the future performance of its arcades in the USA. Namco bought the best-performing arcades of the 3rd largest arcade operator and now has a total of 279 directly owned arcades plus 402 with revenue-sharing arrangements. In Japan, Namco has 425 directly-run arcades and a further 808 under revenue-sharing. While other game developers are reducing fixed assets in an attempt to increase liquidity, Namco is going in the opposite direction and arcade center revenue now accounts for 60% of total revenue.
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With thanks to;
John RyanManjiro Works
Tel: +81 90 2105 8084
Email:john@manjiro.com
Web: www.manjiro.com
