Business vs Idealism: Who has to Win? (case: Konami vs Hideo Kojima)
Hideo Kojima is a Maestro of games who successfully catapulted the name "Konami" a company where he worked at that time. For nearly three decades the Metal Gear Solid Game series designed and directed by Kojima has been a lucrative cash machine for Konami. Then, in 2015 Konami shockingly fired Kojima ruthlessly. Konami even removed Kojima's name from his works. What really happened at that time? and What is the impact of the ban on Konami and Kojima at this time?. It turns out that there are many business lessons that we can take from their stories. For those of you who feel that you are a maestro in a company, you should read this short paper.
Who is Hideo Kojima? How can he shine and the story of his banishment by Konami? Then, what is the reason and mystery behind his banishment? Let's see, the fate of Kojima after Konami and vice versa Konami after Kojima, as well as important lessons that we need to reflect on.
Hideo Kojima was born on August 24, 1963 in Tokyo, Japan. As the youngest of three siblings. As a child, the Kojima family had a tradition of watching movies at night. The father shows European, Western and Horror films and does not allow Kojima to sleep before finishing the film. That experience sparked Kojima to aspire to become a film director. Unfortunately, Kojima's father died when Kojima was 13 years old. Since then, the Kojima family has been going through tough times. Kojima did not have the support to pursue his goals.
While in college, he was inspired by his Super Mario Brothers video game. He sees video games as a medium that can combine the power of a film's story with exciting interactive games. Kojima then decided to work at Konami. The first game he worked on at Konami was Penguin Adventure where he acted as assistant director.
Kojima's first appearance was by developing his own game when he was asked to take over an action game project called Metal Gear. The limited computing power of the MSX2 console used at the time prompted Kojima to innovate. Kojima also changed the game play of Metal Gear from a fighting game to a story of a prisoner who tried to save himself secretly.
Out of that was born the staff game genre and when it was launched metal gear got a very positive response in the Market. Three years later, in 1960, Kojima released Metal Gear II Solid Snake which was very commercially successful. Thus, Metal Gear Solid became a franchise that made Konami's name soar not only in Japan, but throughout the world. Konami's profit coffers also skyrocketed so that there were more than 20 Metal Gear game titles released by Konami.
The uniqueness of the games made by Kojima is not only the geomechanics that are often beyond its time. All Kojima games also have a strong story aspect and stunning visual beauty. Critics refer to Kojima as an Auteur in the game world. Auteur is the name usually given to filmmakers whose personal style and complete control over all aspects of production make their films unique and personal. Some even equate Hideo Kojima with Francis Ford Coppola.
It's 2015 when Metal Gear Solid 5 Phantom Pain will be released. Rumors arose regarding the internal conflict that occurred between Konami officials and Kojima. Suspicion is growing with the cancellation of the release of the Silent Hills game which is being produced by Kojima with renowned director Guillermo Del Toro. Moreover, Kojima himself said that "Phantom Pain was the last Metal Gear Solid series he made". In March 2015, information emerged from an anonymous employee that "Konami's management had changed the status of Kojima and the team from permanent employees to contract employees". Which contract will expire once the Metal Gear Solid 5 game is released. The fans' concerns were evident when Konami removed Hideo Kojima's name from all Metal Gear Solid product packaging from its official website and from all marketing materials.
Kojima's studio in the US, Kojima Productions Los Angeles, was renamed Konami Los Angeles Studio. On December 3, 2015 Metal Gear Solid: The Phantom Pain won the game awards as the best action adventure game. Kojima, who was supposed to receive the award, could not attend because Konami had forbidden him. Konami has officially fired the legendary Hideo Kojima who has made his name.
But, why Konami fired the best talent who popularized his name?. The answer is in the shift in business strategy from Konami. Konami president Hideki Hayakawa said that "mobile is where the future of gaming lies". This decision has a reason, in 2010 Konami released Dragon Collection a card collection game that ran on social media and later on mobile phones. The game has RPG Elements and uses card-based mechanics. So that makes it very easy to play by anyone.
Dragon collection became a sensation in Japan with millions of people playing it. Since then, gaming cars have continued to be a profit driver for Konami. In addition, the contribution value of game consoles, PCs to the company's bottom-line continues to decline. Konami officials realized that they didn't need to make a Triple A Game to make a profit. It's enough to make a simple mobile game that is cheap, fast, and money flows to the company in a big way. Making a triple a game like Metal Gear Solid takes a long time and costs a lot of money. The Phantom Pain cost up to 80 million US dollars to produce and it was suspected by some as one of the originators of the conflict between Kojima and Konami.
And this is what makes Konami determined to shift its focus to mobile gaming and to strengthen the execution of that strategy Konami restructured the organization from what was previously studio-based where each game developer was responsible for each project to become centralized where the head office controlled everything. Automatically, Kojima Productions as a Studio under Konami was removed and Kojima also lost his position as executive content officer. Kojima's hopes of making another Triple A Game at Konami have also been lost. And in Konami's eyes, Hideo Kojima was no longer needed.
Changes in the direction and strategy of the company followed by restructuring are commonplace. However, the story of Konami versus Kojima is unique and even strange. Actually, instead of firing Kojima and his team, Konami could just do a Spin Off on Kojima Production Studio, making it a subsidiary. Because Kojima has proven to be able to produce profitable games. That way, the money will still go to Konami. But that's how Konami chose to fire Kojima and his team ruthlessly.
It's true that Konami is famous for treating its employees like prisoners. Employee movements are monitored. If an employee is late coming back to the office after lunch, management will publicly humiliate him. If someone talks badly about Konami on social media, Konami's lawyers immediately attack with full force. But it's all nothing compared to Konami's treatment of me Kojima. During the last six months of his stay at Konami, Kojima has been confined to a separate room from his team which is on a different floor. Communication between them must go through a proxy or intermediary. There are reports that Konami is not paying Kojima as agreed and Konami is actively warning other companies not to employ Kojima and his team members at their companies.
Of course, no one knows for sure the truth behind these stories because all the actors are bound by a Non-Disclosure Agreement. In a different perspective, it could be that Kojima also played a role in the breakdown of his relationship with Konami. In an interview with the composer of Metal Gear Solid, Rika Muranaka revealed that "Kojima is not easy to work with". Kojima often asked Rika to make him a song which in the end was rejected and not used at all.
Kojima is also very perfectionist in making his games. He spent a lot of money on extra features which resulted in the game's release schedule being delayed. Kojima doesn't have a problem with any of that. Because he works on a salary basis, right. But for Konami, Kojima's behavior has clearly eroded the company's bottom line.
When Konami fired him, Kojima was devastated “I thought I had lost it all” he said at a press conference. "I've been creating games for 30 years and now I have nothing to start with, no office, no staff, no materials to work with." Then, Kojima realized that he was not alone. He has friends in Hollywood and also a good relationship with Sony Computer Entertainment. Kojima moved quickly. In December 2015 Kojima announced the re-establishment of Kojima Productions in Tokyo, Japan. Kojima's team when Konami joined it. Kojima also announced a partnership with Sony to produce and distribute a new game franchise for the Sony PlayStation. And at the 2016 IFA event, Kojima announced his first game outside of Konami entitled Death Stranding which was released in November 2016. In December 2016 Kojima was again invited to the Game Awards which exactly one year earlier could not attend because it was banned by Konami. Well, at that event, Kojima received an Award at the Icon Awards Industry for his work in the gaming industry.
Next, what about the Death Stranding game? Within its first week of sales, Death Stranding became the Best Selling Physical Game in Japan and 6 months after its release sales of Death Stranding had covered its manufacturing costs and made a profit for the new game studio. In general, Death Stranding received positive reviews. Some reviewers complain that the gameplay is considered boring. However, some other reviewers think that Kojima has started a new genre in gaming.
After Kojima was fired, Konami made a console game called Metal Gear Survive. A Metal Gear spin-off whose content is to kill zombies. There is no style element at all. Both reviewers and gamers hate the game. The sales results were also down. This game is considered a failure. Maybe the poor quality of this game is because the top game designers and developers at Konami have left a lot, leaving the company since the tempest of 2015. However, from a business perspective, Konami's choice to move from console games to mobile gaming paid off in September 2017 Konami reported a 27% increase in revenue, with profits up 46% year-on-year. The growth was not driven by sales of console games, but rather the result of mobile games such as yu-gi-oh! and the mobile spin-off of Pro Evolution Soccer. Then, in March 2021, Konami announced that revenue increased again by 3.7% and profit rose 800% from the previous year. This increase in financial performance is still driven by mobile gaming sales and if you look at the results, it seems that Konami's management decision to focus on mobile gaming is the right decision from a business perspective.
In essence, Konami's clash with Kojima was the result of a clash of ideologies. Kojima is a visionary perfectionist who ignores the business aspects of the games he makes versus Konami as a business entity that is shifting its focus to mobile gaming and maximizing profits. Then it's natural! if Kojima and Konami split up. What's immoral is Konami's treatment of Kojima and the team, but that's a different discussion, isn't it. A hope for this separation actually paved the way for Kojima to produce other great works without the shadow and pressure of company officials who only think about profit. At the same time, I hope Kojima learns from this bitter experience that ultimately great artists also need business support to realize their masterpieces. Previously, Kojima said that "he is not interested in the business aspect of the games". In the future, it is time for him to accept and welcome this business aspect. Kojima was standing on his own feet now. He is no longer under the auspices of a big corporation that owns everything. Kojima had no other choice but to think as a businessman, not just as an artist.
Lastly, I hope Kojima can prove that idealism doesn't have to be against business interests. That there will always be a lucrative market for a masterpiece. Masterpieces that can make us discover the meaning of life, encourage us to strive to achieve more than we are today and move us to create a better civilization for mankind.
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