The fans of Silent Hill — a long running video game series — felt let down after the Tokyo, Japan-based gaming company, Konami Corporation KNM confirmed that it has canceled the next chapter of the game. The company was developing the new chapter with Guillermo del Toro, the director of films like Pacific Rim and Hellboy, featuring Norman Reedus, the hero of Walking Dead.
The game first hit a speed bump last month when Konami announced that Hideo Kojima will leave the company once his work for the upcoming game – Metal Gear Solid 5: The Phantom Pain — is over. Kojima is a very successful video game developer who specializes in designing, writing and producing video games.
We believe that the recent developments depict a power struggle between the company’s chairman Kagemasa Kozuki and Kojima. Moreover, according to Gamespot, some senior staffs, including Kojima, are more interested in working as contractors and not as employees.
Though Konami has revealed that it is committed to launch new Silent Hill titles, we do not expect it to be anytime soon.
Separately, Konami, in a Securities Exchange Commission (SEC) filing, yesterday revealed that it has willingly delisted itself from NYSE, effective Apr 24. In November last year, the company had notified investors about its decision and filed a notice with the SEC on Apr 1, 2015 to this effect.
According to the latest filing, the company notified that over the last one year, nearly 99.71% of the trading took place in Japan and London and the remaining in the U.S. The company has to bear a cost of approximately $5 million annually to meet the U.S. regulatory compliance. Therefore, with the recent move the company is likely to cut costs.
Key Picks in the Broader Technology Sector
Investors interested in the technology sector may consider stocks like Cirrus Logic Inc. CRUS, Semiconductor Manufacturing International Corp. SMI and Silicon Motion Technology Corp. SIMO. All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment