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— CH. 1 · FROM JUKEBOX TO ARCADE —

Konami

~5 min read · Ch. 1 of 6
6 sections
  • Kagemasa Kōzuki opened a small business in Toyonaka, Osaka, on the 21st of March 1969. He rented and repaired jukeboxes for local bars and restaurants. The company grew slowly until he decided to change direction entirely. By 1978, Konami released its first coin-operated video game. This shift marked the beginning of their journey into arcade manufacturing.

    The early 1980s brought rapid expansion. Scramble arrived in 1981, followed by Frogger and Super Cobra later that same year. Time Pilot appeared in 1982, while Roc'n Rope and Track & Field hit arcades in 1983. Yie Ar Kung-Fu launched in 1985. These titles became staples in Japanese arcades and soon spread globally.

    Konami established its U.S. subsidiary in November 1982. It started operations in Torrance, California, before moving to Buffalo Grove, Illinois, in 1984. Ben Harel, founder of Interlogic Inc., served as president during this transition. Their earnings jumped from $10 million in 1987 to $300 million by 1991. This financial growth reflected the success of their arcade and home console releases.

  • Konami entered the home console market in 1982 with games for the Atari 2600. They began releasing titles for the MSX computer standard in 1983. The Nintendo Entertainment System received Konami games starting in 1985. Gradius, Castlevania, TwinBee, Ganbare Goemon, Contra, and Metal Gear all emerged during this period.

    The company expanded support to 16-bit consoles in the early 1990s. Super NES arrived in 1990, followed by PC Engine in 1991 and Sega Genesis in 1992. Teenage Mutant Ninja Turtles III: The Manhattan Project appeared on NES in 1991. An anti-piracy feature altered gameplay mechanics if an unauthorized copy was detected. Attack damage decreased while enemy attacks became stronger. The final boss Shredder turned invincible, making completion impossible.

    KCE Tokyo developed the Silent Hill series while KCE Japan created Metal Gear Solid. These franchises revitalized older IP like Metal Gear on MSX platforms. Bemani produced rhythm games under its own brand starting in 1997. Dance Dance Revolution and Beatmania defined this new direction. Yu-Gi-Oh! Trading Card Game launched that same year.

  • Konami diversified beyond video games in July 2000. They acquired People Co., Ltd and Daiei Olympic Sports Club, Inc. These entities became Konami subsidiaries focused on fitness clubs across Japan. Swimming, gymnastics, dance, soccer, tennis, and golf classes operated under their management.

    Pachinko machines played a major role in their business strategy. The company popularized new characters never seen before in traditional gaming formats. Slot machines and arcade cabinets also contributed to revenue streams. Casinos opened around the world as part of this expansion.

    Hudson Soft joined the fold in August 2001. Konami accepted third-party shares issued by Hudson Soft, making it a consolidated subsidiary. Adventure Island, Bonk, Bloody Roar, Bomberman, Far East of Eden, and Star Soldier entered the portfolio after the 2012 merger. This acquisition added depth to their existing catalog of titles.

  • April 2015 marked a turning point for Konami. Silent Hills, intended as the ninth installment of the Silent Hill series, was abruptly cancelled without explanation. P.T., a playable teaser, had received critical acclaim prior to the decision. Hours after the announcement, Konami delisted itself from the New York Stock Exchange.

    Guillermo del Toro publicly criticized the cancellation. He questioned what he described as a scorched earth approach to removing the trailer. Del Toro stated that he would never work on another video game following the experience. Hideki Hayakawa, CEO of Konami Digital Entertainment, announced a shift toward mobile gaming platforms.

    Kojima Productions faced dissolution shortly thereafter. Internal sources claimed clashes between Hideo Kojima and Konami leadership drove the change. References to Kojima disappeared from marketing materials. His position as executive vice president vanished from official listings. The Game Awards 2015 saw audience booing when Kojima could not accept an award for Metal Gear Solid V: The Phantom Pain. Geoff Keighley expressed disappointment during the event. Kiefer Sutherland accepted the award instead while a choir sang Quiet's Theme.

  • Konami delisted from the New York Stock Exchange in April 2015. Hideki Hayakawa declared that mobile is where the future of gaming lies. Production teams established in 2004 consolidated into headquarters that year. Pawapuro Production, BEMANI Production, Virtual Kiss Production, Loveplus Production, and Kojima Productions merged under one roof.

    The company moved its headquarters to the Ginza district of Tokyo in early 2020. A facility for holding esports events opened alongside a school for esports players. Major restructuring occurred on the 25th of January 2021. Product Divisions 1, 2, and 3 dissolved to form a new structure announced later.

    Corporate name changed again on the 1st of July 2022, becoming Konami Group Corporation. An Osaka studio opened in April 2023 within the Umeda Sky Building south building. Plans included sustainable growth over the next 50 years. Konami Animation launched in February 2024 as an anime production arm. Its first work was a PV for Yu-Gi-Oh! 25th anniversary.

  • Konami operates from multiple locations worldwide. Headquarters remain in Tokyo while digital entertainment business runs from Hawthorne, California. Casino gaming operations manage from Paradise, Nevada. Australian gaming activities center in Sydney.

    As of March 2019, the company owned 22 consolidated subsidiaries globally. Konami Digital Entertainment handles planning, production, publishing, development, sales of mobile games, home games, card games, music software, and merchandise. Konami Sports manages fitness clubs and sports classes including swimming, gymnastics, dance, soccer, tennis, and golf.

    Konami Amusement produces pachinko and pachislot machines. Konami Arcade Games focuses on arcade machine manufacturing. Gaming Technology Co., Ltd. distributes casino management systems. Regional branches exist across Europe, Asia, and North America. Hong Kong division established in September 1994 became Konami Marketing (Asia) Ltd before renaming to Konami Digital Entertainment Limited in March 2006.

Common questions

When did Kagemasa Kozuki open Konami?

Kagemasa Kozuki opened Konami on the 21st of March 1969 in Toyonaka, Osaka. He initially rented and repaired jukeboxes for local bars and restaurants before expanding into video games.

What year did Konami release its first coin-operated video game?

Konami released its first coin-operated video game by 1978 to begin arcade manufacturing. This shift marked the start of their journey from repairing jukeboxes to creating arcade titles like Scramble and Frogger.

Where is Konami headquarters located as of 2024?

Konami moved its headquarters to the Ginza district of Tokyo in early 2020. The company operates from multiple locations worldwide including Hawthorne, California, Paradise, Nevada, and Sydney, Australia.

Why was Silent Hills cancelled in April 2015?

Silent Hills was abruptly cancelled without explanation in April 2015 following a decision by Hideki Hayakawa. Internal sources claimed clashes between Hideo Kojima and Konami leadership drove the change that led to the dissolution of Kojima Productions.

When did Konami become Konami Group Corporation?

The corporate name changed again on the 1st of July 2022 to become Konami Group Corporation. Plans included sustainable growth over the next 50 years with an Osaka studio opening in April 2023.