Bionic Commando stalls, Capcom profits sink

Capcom's revitalization of 8-bit classic will arrive on PS3, 360 in May, PC later in '09; holiday earnings see net profit plummet 95 percent.

The good news for Capcom is that it is on the verge of releasing a number of new installments in some of its best-selling franchises, such as Resident Evil 5. Unfortunately, one of those games will arrive later than what was previously expected. As part of its painful third-quarter financial results today, Capcom said that the GRIN-developed Bionic Commando for the Xbox 360 and PlayStation 3 has been bumped beyond its current fiscal year to May, with the PC edition to follow several months later.

Clear skies on the horizon?

The delay typifies what can only be called an atrocious October-December quarter for the Japanese publisher. For the holiday quarter, Capcom saw sales decline 8.6 percent to ¥47.2 billion ($519.5 million), off from last year's haul of ¥51.6 billion ($568 million). Profits for the quarter were another story altogether, plummeting 95 percent to ¥179 million ($1.96 million), down from ¥3.57 billion ($39.3 million) a year prior.

"This is attributable to the slacking performance of Arcade Operations and Contents Expansion Business, the sharp rise of the yen's exchange rate, and not having the release of flagship titles until the fourth quarter in the Home Video Games Business," the publisher said in a statement.

As for that fourth quarter, it is shaping up to a strong one for the publisher. Headline releases include the aforementioned Resident Evil 5 for the Xbox 360 and PlayStation 3. Capcom expects the game to sell 3.25 million units by the end of its current fiscal year, which ends March 31. Capcom also expects Street Fighter IV to achieve platinum status after its launch on the Xbox 360 and PS3 in February, projecting 1.7 million in sales. The publisher laid out more modest expectations for Dead Rising: Chop Til You Drop, saying that it expects 500,000 units of the Wii port to sell worldwide.

Despite the weak holiday performance, Capcom does not expect to see any significant change to its full-year outlook. All said, the publisher expects revenues to grow 14.7 percent to ¥95.3 billion ($1.04 billion) for the full year, with net income seeing a 10.1 percent uptick to ¥8.6 billion ($94.6 million). However, Capcom did caution that these numbers heavily hinge on the outcome of its aforementioned fourth-quarter slate.

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Discussion

106 comments
RM84x
RM84x

SF4, RE 5, Bionic Commando, Lost Planet 2, Dead Rising 2, etc. They will be fine.

Musashi920
Musashi920

It has nothing to do with "investors" or a company porting over non-AAA games. No major titles came out from capcom last year. At least non that I can think of besides maybe Monster Hunter 2G. Even then that was for the psp, a system which has rampant piracy. The problem with capcom and many other companies is technology itself. Games are more detailed, the music is more indepth to the game, gameplay, marketing, etc. Basically it is taking more time to make a hit game than it did in the last gen or the ones before. It's been taking them about 2years to develop and release RE5 and SF4. Same thing can be said about square. All they did to stay afloat last year was release a bunch of remakes of the Dragon Quest series and some lame new IPs that sold just on the SE name alone. Game companies need to spread out the release of their games to they have a steady income through out the year or years i should say now. SF4, RE5, Bionic Command, and Monster Hunter 3 are big games from capcom all coming out this year. It will be at least another 2 years before any of these games get another sequel if they even sell well enough to get another. What will they come out with in the mean time?

AlexLJ
AlexLJ

Make Devil May Cry 5 and all of their problems should wash away.

Cahallmxj
Cahallmxj

The problem that these game companies are running into is that as they got more successful they started to attract the attention of those who wanted a piece of the pie without having to do anything (investors). When times are good investors throw money at them and tell them to do their thing, they don't care what they put out because they are making money. They could port all the games I've seen mentioned in these posts and nobody would care because some AAA game would be covering the cost of them. But, when times get lean (now) the investors start poking their nose into the financial reports and say "well, why don't you make one of those resident street monster thingy's cause that's what made me money last year" Capcom (according to gamespot in the article) said that they expect things to turn around during this year and until they do and the rest of the economic mess stops making the financial people paranoid I really doubt any game company is going to take much of a risk. The people who only know a company by its stock abbreviation are calling the shots and I really doubt a big company is going to bite the hand that feeds it.

MYTMOE
MYTMOE

Well I think that Capcom is getting what they deserve... Low Sales, profits down. After all wasn't it Capcom who said Monster Hunter 2 was coming out for the PS2, ( For Japan only ) What about your other Monster Hunter Fan's in other counties? Then there was the PS3 Version of Monster Hunter 3, ( EXCLUSIVE TO THE PS3 ) What a FARCE that was. Just how many of your fans can you, or should you, let down before your company feels the loss? You turned your backs on too many of your once loyal fans, now reap your just REWARDS... Crapcom. You lost a lot of Grace when you fell flat on your face, due to the fact that you turned your back on PS2 and PS3 owners. Now it's time to pay the PIPER.... I hope your sales PLUMMET, and you go bankrupt as well. Suffer as we ( Meaning all PS2 and PS3 owners ) have suffered due to your lies

MR-BIZ
MR-BIZ

who gives a crap

DemiNite
DemiNite

If they stopped working on remakes maybe they'll be more succesful... you cant expect remakes to sell lots.. games for the wii for RE4 and Okami for example..i mean sure the new control schemes might be great but meh.. Rather than remakes maybe try making sequels? Lost Planet 2 and Marvel vs Capcom 3? Also i think Monster Hunter 3 would be benefitial as well? its unfortunate that it wont be coming out for the ps3 though, that would've helped Sony.

maxgil2
maxgil2

Where's Tatsunoko vs Capcom?...outside of Japan..eh?

Telekenesis123
Telekenesis123

Well from what I gather from playing the demo they got a sure fire hit on their hands with RE5. I not only think its going to sell very well on its launch but its one of those types of games that will see strong sales even after launch due to the word getting out to people who generally don't read gaming news every day. The co-op is fantastic, that will probably spread it through word of mouth more after launch. Oh don't worry Capcom, it will get better :) I'm really pleased with what Capcom is doing with their IP's lately like SF4, Bionic Commando (remake as well), Mega Man 9, RE5, and they just relased that video for Dead Rising 2 today (go to Kotaku). Overall I don't think anyone is being as smart with their IP's as Capcom is right now.

greenhillscone
greenhillscone

[This message was deleted at the request of a moderator or administrator]

raahsnavj
raahsnavj

You know ever since developers tried releasing on both the X360 and the PS3 together we have been seeing a lot of delays... I wish they would go back to putting it on the X360 and then porting it over to the PS3 6 months later... This whole do both thing just messes up the X360 release schedules.

Hvac0120
Hvac0120

@SalarianChemist I think your right about underestimating RE5 sales. RE4 was sold on the Gamecube, then sold again for PS2 and then more recently for the Wii. I would expect that to amount to a lot more sales for RE5 just on the brand alone. We might be wrong, but it seems to me that enough of the general public is now aware of the RE brand and the quality that is tied to it.

daveneonfarrell
daveneonfarrell

@ NarcMonkey I was thinking the exact same thing. You nailed it. It seems like every other news article on gamespot is about some game company losing millions. It gets old after awhile. Leave the fiance reporting to the pros and get back to the games.

SalarianChemist
SalarianChemist

Co-Op is an amazing feature that makes every game significantly more fun. The fact that Resident Evil 5 lives up to the standards of 2009 and includes a Co-Op mode is awesome. I honestly think Capcom is being a little bit reserved with their predictions for sales of Resident Evil 5--I think it will sell even better than Capcom predicts. Street Fighter 4 is going to be awesome, too! No doubt about it, Capcom has the two best games in the first quarter of the year! We waited a long time for these games, but they live up to every standard we ever expected.

AzelKosMos
AzelKosMos

Already have RE5 and SFIV pre ordered, i'm doing my part for Capcom! :D

thegamemonkey
thegamemonkey

If capcom wants any real profit, they better release monster hunter 3 in the U.S!

cajunstrike
cajunstrike

Agreed. Street Fighter IV and Resident Evil 5 console releases will certainly help increase revenues.

EddyG0RD0
EddyG0RD0

how come? will all their porting these days

DaFrop
DaFrop

Where is Power Stone 3?

FLEEBS
FLEEBS

Bummer. I was hoping to play Bionic Commando sooner than May.

mrzero1982pt2
mrzero1982pt2

JACKAL1883 im sorry but mvc3? not gonna happen. mvc2 as a downloadable game? possible, pending capcom pays marvel and the OTHER companies who hold the rights to marvel characters(mainly activision). remember how long it took for tmnt arcade to come out on xbox live? my friends who had the ORIGINAL XBOX were craving it when the orignal xbla was out! it just came out what, in 07? its licensing. if you download tmnt, you will see ubisoft's logo. it will be the same for mvc2. it will have who's name... activision blizzard, i think warner brothers or whatever, sega, i could go down the line. and capcom would not reap any benefits. just like they did snk with capcom vs. snk 1 and 2.

Gamingcucumber
Gamingcucumber

Capcom is responsible for some of the best games in the industry. But they got two monster guns comming out soon Street Fighter 4 and Resident Evil 5. Not to mention all the other un-announced and still in the works titles.

2bitSmOkEy
2bitSmOkEy

@KartoTolmex I know many of you don't even want to hear or believe this, but that is pretty much what has been going on since this generation started. With the cost of game development going through the roof (compared to previous generations anyways) and also due to the industry imploding with popularity, it has easily turned into the most stagnant entertainment form on the planet....easily easily easily. Name 5 truly revolutionary games a year. gogogogogogo. you might be able to come up with 2-3 maybe even less. Every fps is about aliens taking over the world, every 3rd person shooter is about...aliens taking over the world while you have to use cover based gameplay. every jrpg is about melodramatic tweeners saving the world anime style. every mmo is a wow clone. the list goes on and on, its ultra pathetic how boring and stale this industry has become now that there is so much money floating around in it. I can't WAIT to see how bad it gets now that the economy will drive this trend home even worse (for those that don't read sarcasm, that was it). ps: ohhh portal creators how we miss your intelligence. please sneak off another brilliant title that we haven't already played 5 thousands times.

Henninger
Henninger

I gotta agree with u JACKAL 1883; bring back Marvel vs. Capcom series!!! & yea i wanna play that Tatsunoko vs. Capcom game 2 so yea Capcom bring that overseas also! & dont get me wrong I like the new style of Resident Evil but Capcom u gotta make another Resident Evil game based on the old school controls or @ least somehow make the old school style better (dont have any ideas but im sure that yall can come up with something). I miss my hunters & room full of zombies. & bring back Nemesis! By far the best infected character in the Resident Evil series.

enoslives7
enoslives7

quick Capcom, bring out "Street Fighter 2 :Super Tournament Hyper Extreme Ultra Edition" ! Oh wait, thats already been done.

JACKAL1883
JACKAL1883

Go CAPCOM!!!.....Ohhhh BTW If you want to be rolling in the dough capcom release a marvel vs capcom 3. and bring the Tatsunoko vs Capcom to the USA

KartoTolmex
KartoTolmex

@NarcMonkey The reason why GameSpot report things like this is to open your eyes to things you wouldn't necessarily be aware of. Secondly it answers questions as to why companies make certain choices, especially in the times that we are walking in (economic crisis). No matter what your hobby it will be affected, we will see less original titles and more franchise rebirths, remakes etc. Not immediately, but the games that are beginning their development cycle now won't have the same "freedoms" that say Mirror's Edge had. Companies will begin to make "safer" choices, and we'll begin to get more and more generic titles like FPS types, because they are guaranteed to sale.

secretnoob
secretnoob

i feel like capcom has forgotten about what made resident evil awesome. the freakin scariness. its a horror game. just becaue there are zombies, doesnt mean scary. the environments are so bright, this doesnt look foreboding at all, which is sad :( plus its co op, even if a real person is playin, you still dont have the sense of aloneness with the chick there

NarcMonkey
NarcMonkey

Gamespot should really stop reporting on finances, and start writing decent Previews, so we can buy more games, and get the quality publishers out of their financial debacles without ever having to know they were in one. I don't ever remember once giving a crap about how much money Nintendo grossed on a game, or that Capcom lost money during the holidays. The topic of money cheapens the hobby of playing games, tell us more about Resident Evil 5, instead of regurgitating Financial Press Releases that belong in the Wall Street Journal or some other filthy financial smut rag.

kemar7856
kemar7856

lets see their numbers at the end of the quarter after RE5 and SF4 is released

Amir29
Amir29

Capcom seems to be underestimating it's projections for ALL of those upcoming games. That's a good thing though. Next year should be a very strong one for Capcom.

NarcMonkey
NarcMonkey

Capcom is one of the greatest game developers ever, msharki. Their demise would likely spell the downfall of gaming standards. Not that I think they are going to tank, I mean, Resident Evil 5 is coming out next month, likely to sell a million copies quite fast between the PS3 and the suxbox360. Holiday sales dive could have a lot to do with the fact that they put out nothing for the holidays... think about it.

ResidentialEvil
ResidentialEvil

What do you mean listen to what people want? They made it simliar to RE4, which is a huge hit.

msharki
msharki

Capcom could go under for all I care. The new Street Fighter looks stupid, and the Resident Evil demo proved they are not willing to change with the times or listen to what people want.

shabulia
shabulia

As long as this doesn't happen to Street Fighter IV, I'm good.

bluedevil64
bluedevil64

Rearmed was pretty awesome, maybe they should have expanded that game more and charged full price for it rather than try to reinvent a classic that many of us hold dear. It's got a lot to live up to, the original BC was one of the 8 bit era's best games.

bluedevil64
bluedevil64

WapoStyle, it was more of a rhetorical question than anything. :)

Hvac0120
Hvac0120

This sounds like one of two things is going on with Bionic Commando... (1) The game has such bad quality at the moment that they need the extra time to polish the game before it comes out. If this is the case I hope that the extra polish actually makes it a good game. I was hoping this would beat expectations. (2) Capcom doesn't want Bionic Commando to go unnoticed with Street Fighter IV and Resident Evil 5 coming out. If this is the case, I hope that the plan doesn't backfire and then the game go unnoticed because it goes up against well-known IP's later in the year.

FrankTheFrank
FrankTheFrank

Yay wii versions. Let's do this! Just start porting crap to the Wii and we'll buy it. Stop making these useless games for the 360 and PS3 that don't sell and toss us some good games.

Hillsy_
Hillsy_

:) Marvel Vs Capcom 2 was good fun. The PC versions will always be released later due to mainly piracy and optimisations etc. It is a shame about the Arcade Operations, I use to love going into the Arcades. Funny how times change. I hope Capcom do pick up, probably my favourite developer of all time.

chex81
chex81

cant wait for BC...very excited

bishopphoto
bishopphoto

Make another Marvel VS Capcom, and port it for the Wii. I would buy that (and so would about ten of my gamer friends) in a HOT MINUTE. Or just give us that same M V C 2 ported to Wii, maybe some rare unlockable Nintendo character????

Supabul
Supabul

Did any publishers make money last year

tupac-makaveli
tupac-makaveli

that's what capcom gets for closing clover studios and destroying a chance of okami 2.

Senor_Kami
Senor_Kami

Dropping sales are bad, but in all honesty I don't remember any game coming out from Capcom in a long time.