Capcom Profits Drop by Half, Resident Evil 6 Sales Fall Short - NewsWilliam D'Angelo, posted on 08 May 2013 / 5,884 Views
Capcom has released its financial statement for its fiscal year which ended March 31, 2013. Revenue for the year increased by 15 percent year-over-year to ¥94.08 billion ($952 million). Despite the increased revenue profits dropped by more than half to ¥2.97 billion ($30 million), from ¥6.72 billion ($68 million) last year.
Resident Evil 6 managed to sell 4.9 million units during the fiscal year. This figure falls far below the seven million in sales Capcom had originally forecasted. While DmC had only sold 1.15 million units, sales have managed to remain stable in overseas markets. Monster Hunter 3 retail sales for the Wii U were called soft.
Dragon's Dogma was a bright spot for the company. The game has sold more than one million units, which Capcom is happy with since it is for a new IP. Two mobile games, Resident Evil: Outbreak Survive and Minna to Monhan Master, have each managed to sell more than two million units.
"As a result, [Resident Evil 6] did not meet with our projection and thus was not able to play a role in leading the segment’s sales growth," said Capcom in a statement. "In contrast, Dragon’s Dogma became a greater-than-expected hit product in the domestic market, which has high profitability, and became an unprecedented million seller in the recent years as an original title. In addition, DmC Devil May Cry enjoyed stable popularity in overseas markets and posted solid sales."
In order, to increase the quality of its games, Capcom will be changing its focus from outsourcing its games to other developers, to developing more games in-house. The entire company will be streamlining.
Capcom expects new game releases in the near future to be lower than usual, due waiting for the release of the PlayStation 4 and next Xbox. Development costs for next generation titles are expected to soar and the number of companies working together is expected to increase. Capcom did state that they won't leave the home video game market for social and smartphone gaming.
Capcom released its forecast for its next fiscal year , which ends on March 31, 2014. The company expects high profit, due to the development of online games for the PC and mobile markets. Also the release of Monster Hunter 4 and Lost Planet 3 will help its bottom line.
Revenue for the next fiscal year is expected to increase to ¥97.00 billion ($980 million), while profits are expected to more than double to ¥6.80 ($69 million).