Revising its forecasts for the fiscal year (ending March 31st, 2011), Japanese-headquartered console and arcade game creator Capcom slashed its profit predictions by 18.8 percent due to the strong yen, Dead Rising 2
's delayed release, and disappointing Lost Planet 2
The publisher expects to generate only ¥6.5 billion ($78 million) in profit during the full fiscal year, compared to the ¥8 billion ($96 million) it previously forecasted. It managed ¥2.17 billion ($26 million) in profit during the previous fiscal year.
Capcom also dropped its sales estimates by 4.2 percent from ¥95 billion ($1.14 billion) to ¥91 billion ($1.09 billion). During FY2010, the Osaka-headquartered firm earned only ¥66.8 billion ($801.5 million) in revenue.
The company attributed the lowered forecasts to the one-month delay of Dead Rising 2
earlier this year, as well as its inability to "offset the large shortfall in sales" relative to previous estimates for for Lost Planet 2
. Capcom also blamed the rapid increase in the yen's value to the euro and U.S. dollar.
As for its predictions for the first half of the fiscal year (April 1st to September 31st 2010), the company has near-final predictions of 41.4 percent less profit at ¥1.7 billion ($20.3 million), and 10.6 percent less sales at ¥2.9 billion ($34.8 million).
"Due to foreign exchange losses associated with foreign currency-denominated assets and liabilities, first half [profits] are expected to be far below the previous forecast," the company explained in its report.