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New releases and digital sales are driving growth at Capcom, which just published its financials for the first quarter ended June 30, 2020.

Chris Kerr, News Editor

August 3, 2020

1 Min Read

New releases and digital sales are driving growth at Capcom, which just published its financials for the first quarter ended June 30, 2020. 

According to the fiscal report, consolidated net sales rose by 32.2 percent year-on-year to 23.7 billion yen ($222.8 million), while profits increased by 44.2 percent to 7.8 billion yen ($73.3 million) over the same period.

It's a similar story in the company's digital contents segment, which houses its video game operations, with net sales rising by 53.7 percent to 21.4 billion yen ($201.1 million) and operating income increasing by 52.6 percent to 11.8 billion yen ($110.9 million). 

Capcom explained that upswing was due to solid sales in the Resident Evil franchise, and "high-margin catalog sales" of titles like Monster Hunter World: Iceborne and Resident Evil 2

Discussing the impact of the COVID-19 pandemic on its business, Capcom explained the virus had "created a challenging environment" for its arcade operations segment, but noted that its digital contents arm had continued to perform.

"The core digital contents business drove business results through digital sales growth of major new titles and catalog titles, backed by successfully promoting stronger digital sales in recent years," reads the fiscal report. "As a result, Capcom achieved its highest net sales as well as highest levels of all profit items for a first quarter."

Looking ahead, the company's fiscal forecast remains unchanged, and Capcom is still predicting conflated net sales of 85 billion yen ($799.1 million) and profits of 18 billion yen ($169.2 million) by the end of the fiscal year on March 31, 2021.

About the Author(s)

Chris Kerr

News Editor, GameDeveloper.com

Game Developer news editor Chris Kerr is an award-winning journalist and reporter with over a decade of experience in the game industry. His byline has appeared in notable print and digital publications including Edge, Stuff, Wireframe, International Business Times, and PocketGamer.biz. Throughout his career, Chris has covered major industry events including GDC, PAX Australia, Gamescom, Paris Games Week, and Develop Brighton. He has featured on the judging panel at The Develop Star Awards on multiple occasions and appeared on BBC Radio 5 Live to discuss breaking news.

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