Konami is working on new games, but it’s resulted in a 10% drop in operating profits in its third-quarter financial report.

Ever since Metal Gear Survive flopped like a dead duck, Konami seems to be struggling to remain relevant in the video game world. They still generate plenty of cash from various mobile titles, but Konami is in danger of no longer being a name we recognize once the next console generation arrives.

However, it looks like Konami has a plan. They’re working on something, according to their latest financial disclosures, as they quote research, development, and production costs as the reason their profits fell during the third quarter.

According to Gamasutra, Konami’s biggest earner was Yu-Gi-Oh! Duel Links, a 2016 mobile release. Other notable titles include eFootball PES 2020, Professional Baseball Spirits A, and Beatmania IIDX Ultimate Mobile. These titles helped raise Konami’s revenue roughly 2.7% compared to the same time period last year, up to ¥108.7 billion (roughly $999.5 million USD) from ¥105.8 billion (around $972.8 million).

After noting that they still have a solid income from mobile and sports-related titles, Konami then admits that overall profits fell to ¥29.1 billion (or $267.6 million), which is roughly a 10% drop from last year.

“With the spread of entertainment offered through networks, the available means of providing games continue to diversify,” Konami said in a statement. “Opportunities to reach an even greater audience for games are increasing. Against this background, we intend to develop ways of playing games that match the characteristics of each device.”

The last game that Konami released was Contra Rogue Corps, a run-and-gun shooter that fell flat with most reviewers. Metacritic rates Contra at just 40%, while the PS4 and Xbox One reviews hover in the low 50s. We were a little more charitable to Rogue Corps, giving it a 3.5 out 5, but then again, dumb run-and-gun games are a favorite around the office.

So what could Konami be up to? The latest rumors point to a new Silent Hill game currently in development. The classic horror franchise used to be a big seller for Konami, but then they shelved the games when the series became a little too predictable which reduced its scare factor.

Source: Gamasutra