Capcom's Profits Take a Downturn Despite Strong Performances From Resident Evil 6, DmC and Dragon's Dogma
Written Wednesday, May 08, 2013 By Richard WalkerView author's profile
Capcom has today reported that its profits are down for the last fiscal year, which is apparently in part down to the publisher's efforts to restructure. Despite strong performances from DmC, Resident Evil 6 and Dragon's Dogma, which Capcom notes sold better than expected, Capcom's profits have failed to live up to forecasts for the fiscal year.
Restructuring costs have had a detrimental effect on Capcom's profits, but it's a re-evaluation of games the publisher currently has in development that have skewed profit forecasts. Notably, Capcom is rethinking its overseas outsourcing strategies for its franchises in the future.
Capcom has stated that there has been a "decline in quality of titles outsourced to overseas developers," which could mean less franchises get farmed out to western developers going forward. Nonetheless, it's hoped that high-profile titles like Spark's Lost Planet 3 and Monster Hunter 4, as well as mobile and PC titles could aid in boosting Capcom's profits.
For the fiscal year ending March 31st, 2013, Capcom posted revenues of ¥94.1 billion ($951.7 million), which is actually an increase of 14.6% over last year. However, profits are at ¥3.0 billion ($30.1 million), which is down 55.8% year-over-year. Revenues of ¥97 billion ($981.3 million) are offset by Capcom's operating income of ¥12 billion ($121.4 million) for the year ending March 31st, 2014.