Konami (9766): Assessing the impact of its Mobile and Gambling Game Strategy

There was a time when Konami didn't miss, a time when they were the undisputed king of grown-up video games. This is the gaming studio behind the incredible Metal Gear Solid (1987), with Hideo Kojima as the Shigeru Miyamoto for cool kids. They gave us the scariest game in existence, Silent Hill (1999), classics like Castlevania (1986) and Contra (1990), and who can forget Dance Dance Revolution (2005), the game that single-handedly created the nerdiest past-time activity in history. However, those days are long gone. Hideo Kojima has left, the company has released fewer and fewer good games, and has almost fallen into obscurity.

But wait, the stock is still more relevant than ever! How, you may ask? Let's explore if investing in Konami today is still a wise move.

TABLE OF CONTENT
- Investment Thesis
- Valuation
- Risks to Valuation & Price Target
- KonichiValue Score

Investment Thesis

Konami Holdings Corporation has made a bold move by pivoting from its roots in blockbuster games and fitness ventures to focus on more profitable, though controversial, sectors like mobile gaming and pachinko machines.

Konami’s IPs have made them a very strong player in the Japanese gambling (Pachinko) scene