informa
2 min read
article

Capcom Raises Forecasts Despite Profit Drop

Japanese publisher Capcom has released details of its third quarter financial results, with strong home video game sales dragged down by poor performances by the company’s arcade business. As a result, sales were up to $484.5m but profits down.
Officials from Japanese publisher and developer Capcom have announced details of the company’s financial third quarter, with net sales rising by 4.8 percent to ¥51.66 billion ($484.5m) but net income dropping by 17.8 percent to ¥3.57 billion ($33.5m). The company’s mixed results were blamed on a still unsettled Japanese and world economy, but helped by a video games business which was still experiencing smooth growth “accelerated by the expanded user base with an increase in novice users including seniors and females.” Resident Evil: The Umbrella Chronicles for the Wii was noted as a strong seller in the West, while Monster Hunter Freedom 2 was one of the company’s biggest sellers in Japan, with sales of over 1.5 million units. The success of the ongoing Resident Evil movie franchise also helped the company, but its overall results were adversely affected by its arcade operations and coin-op divisions, the business environment for which was described as “stagnant”. Capcom’s home video games business outperformed the company as a whole, with net sales up by 23.3 percent to ¥30.85 billion ($289.5m) and operating income up 38.2 percent on the previous year to ¥6,039 billion ($56.7m). Sales for Zack & Wiki: Quest for Barbaros’ Treasure on Wii and Sengoku Basara 2 Heroes on PlayStation 2 and Wii were described as growing “steadily”, while the growth for We Love Golf! on Wii and Mega Man: Star Force 2 on Nintendo DS was described as “sluggish”. With cumulative sales of the recently released Devil May Cry 4 estimated to reach 1.9 million by March 31st, the company predicates that its full year results will see an operating profit increase of 20 percent to ¥11.5 billion ($107.9m) – up 15 percent on previous forecasts. Revenue expectations were also raised to 9.5 percent and ¥78 billion ($731.9m) while net income forecasts remain steady at an increase of 5.9 percent to ¥6.2 billion ($58.2m).

Latest Jobs

Disbelief

Chicago, Illinois
05.10.22
Producer

Build a Rocket Boy Games

Edinburgh, Scotland
05.12.22
Lead Animation Programmer

Windwalk Games

Austin, Texas
05.16.22
Game Designer

Sucker Punch Productions

Bellevue, Washington
05.10.22
Campaign Director
More Jobs   

CONNECT WITH US

Register for a
Subscribe to
Follow us

Game Developer Account

Game Developer Newsletter

@gamedevdotcom

Register for a

Game Developer Account

Gain full access to resources (events, white paper, webinars, reports, etc)
Single sign-on to all Informa products

Register
Subscribe to

Game Developer Newsletter

Get daily Game Developer top stories every morning straight into your inbox

Subscribe
Follow us

@gamedevdotcom

Follow us @gamedevdotcom to stay up-to-date with the latest news & insider information about events & more