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News  1, Apr 2014

Capcom slashes profit forecast due to “rapid changes” in the market

Capcom has slashed profit forecast for fiscal year that ended on Mar 31 by 51.5%; anticipates net income to be US$31.9M, as opposed to US$66M

Image credit: Capcom

Capcom, the publisher known for Mega Man, Street Fighter, Resident Evil and Dead Rising, is revisiting its profit predictions.

The company announced recently that it has slashed its profit forecast for fiscal year that ended on March 31 by 51.5 per cent. This significant calculation means that it will anticipate its net income to be US$31.9 million. Previously, it expected a profit of US$66 million.

This huge drop of US$33.9 million is due to “rapid changes” in the games market and its struggle in the mobile gaming industry.

It said, “[Because of this], Capcom is building a sound base for earnings by reorganising the product development framework and improving development processes. These are two core elements of the company’s operations. The objective of these activities is to earn consistent earnings in each fiscal year. However, these initiatives have not yet started to produce benefits mainly in the mobile content.”

Read Also: The future of Puzzle & Dragons’ studio? Free-to-play on consoles

Capcom raised its net revenue forecast for 2014 from US$939 million to US$938 million, because it’s confident about the ever-going sales of Monster Hunter 4 and its slot-machine series spin-off, Monster Hunter Gekka Raimei. If you’ve read our past Japan Watch columns, this should not come off as too much of a surprise as anything that resembles or feel like a Monster Hunter game will attract local gamers like bees to honey.

The company mentioned that its software sale is expected to be higher than the previous year due to the launch of particular major titles in its stable. However, its operating, ordinary and net income is expected to decrease due to rising cost of sales, general and administrative expenses.

In related news, there hasn’t been any buzz about its highly-touted next-gen free-to-play title Deep Down apart from the game’s lack of female characters.

Jonathan Toyad

Jonathan Toyad

If you want an elaborate answer on who would win in a fight between Ultraman and Godzilla, Jonathan Toyad is your man. A six-year veteran in the game journalism industry, he did words and videos for outlets such as GameSpot, GameAxis, IGN and Stuff.TV. Fears coyotes and scorched earths.

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