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Resident Evil 5, Street Fighter IV Drive Capcom Growth

Osaka, Japan-based Capcom has posted an increase in sales and profits for the fiscal year ended in March, driven by Resident Evil, Street Fighter and Monster Hunter; more growth in the year ahead expected.
Osaka, Japan-based Capcom has posted an increase in sales and profits for the fiscal year ended in March, with more growth expected in the year ahead thanks in part to a strong home video game business. The publisher said the release of Resident Evil 5 and Street Fighter IV on Xbox 360 and PlayStation 3, as well as Monster Hunter Freedom 2G for PSP, helped drive overall sales to ¥91.9 billion ($926.67 million), a 10.6 percent increase from the prior year. Capcom said sales were the highest they've been over the past three consecutive fiscal years. Operating income was ¥14.6 billion ($147.4 million), up 11.4 percent, and net income was ¥8 billion ($80.77 million), up 3.3 percent. Resident Evil 5 and Street Fighter IV both launched in Capcom's fiscal Q4 following the crowded holiday season. Capcom described Resident Evil 5 as a "mega hit," as the game's initial shipment was four million units. Street Fighter IV has shipped over two million worldwide. Continuing strong sales from late in the previous fiscal year was Monster Hunter Freedom 2G for PSP. Released in March 2008, the game has sold 2.55 million units to date. The publisher also noted other strong performers, including Grand Theft Auto IV for PS3 and Xbox 360 and Mega Man Star Force 3 for Nintendo DS. Net sales for the home video game segment specifically were ¥63 billion ($636.14 million), a rise of 21.7 percent. Operating income for the segment was ¥16.39 billion ($165.47 million), a year-on-year rise of 41.2 percent. Capcom also noted a "softening" arcade market: "Under the influence of this sluggish market, existing arcades struggled with a decreased number of visitors. This was due partially to the lack of sales-inducing games, and to the fact that the difference between home video games and arcade games has become negligible." Arcade operations of the company's "Plaza Capcom" locations posted flat sales and a decrease in profits, although actual arcade game sales and profits, driven by Street Fighter IV, were up. For the year ahead, Capcom expects to beat this year's results. The company projected net sales to increase to ¥95 billion ($958.87 million) and operating income to rise to ¥15.5 billion ($156.49 million), driven again in part by a growing home video game business.

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