Capcom annual profits fall 73.1%

Weak Dark Void and Bionic Commando sales, flagging arcade division create unfavorable year-over-year comparison for Japanese publisher--which still posts $23.8 million in net income.

The fiscal year ending March 31, 2009, was a good one for Capcom. Two megahits--Street Fighter IV and Resident Evil 5--sent the Japanese publisher's revenues soaring. The critically acclaimed games sold over 2 million and 4 million units, respectively, helping the company reap over $1 billion in annual sales.

Once pegged as a sure-fire hit, Dark Void was a critical and commercial disappointment for Capcom.

Unfortunately, the 12 months ending March 31, 2010, were a different story. For that period, Capcom reported annual revenues fell 27.3 percent to ¥66.84 billion ($734 million, £500 million), with operating income dropping 61.8 percent and net income plummeting 73.1 percent to ¥2.17 billion ($23.8 million, £16.2 million). The publisher's Home Video Game division saw net sales fall 30 percent from ¥62.9 billion ($690 million, £470 million) to ¥44 billion ($482 million, £329 million) and operating income sink 52.1 percent from ¥16.4 billion ($180 million, £122 million) to ¥7.9 billion ($87 million, £59 million).

Though it had predicted big sales for Dark Void, Capcom didn't prevaricate about what went wrong with its self-described "sluggish financial results." In a statement, the company said "three software titles that were released in the overseas markets, namely Bionic Commando (for the PlayStation 3, Xbox 360), Resident Evil: The Darkside Chronicles (for the Wii), and Dark Void (for the PlayStation 3, Xbox 360), underperformed their sales and remained weak." However, Monster Hunter Tri, Resident Evil 5: Alternative Edition, and Sengoku Basara Battle Heroes "performed satisfactorily," according to the company.

Capcom's arcade department saw an "extraordinary loss," which it blamed on overall decline in consumer spending and consumers pushing into "alternative at-home entertainment." Revenue in its Arcade Operations division fell 11.3 percent from ¥13.5 billion ($148 million, £100 million) to ¥11.9 billion ($131 million, £89 million), but operating income shot up 162.9 percent to ¥590 million ($6.48 million, £4.4 million). Arcade Games Sales revenue fell 71.6 percent from ¥8 billion ($86 million, £59 million) to ¥2.3 billion ($24 million, £17 million), with the division losing ¥203 million ($2.23 million, £1.5 million).

Mixed financials aside, Capcom is bullish about its current financial year, which ends on March 31, 2011. The company predicts sales of Super Street Fighter IV, which has already shipped 1 million units, and next week's Lost Planet 2 will boost annual net sales to ¥95 billion ($1.03 billion, £710 million). The company expects operating income to increase to ¥15 billion ($163 million, £112 million) and ¥8 billion ($163 million, £112 million) in profits for the 12-month period.

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Discussion

214 comments
SIickster
SIickster

Capcom is known to me for their work on GBA Zeldas. I want more of those classics.

PumpkinBoogie
PumpkinBoogie

Hate to say it (I know I'm gonna get downed for this), but the only thing I wanna see from Capcom would be if they revived the freakin' Onimusha series (or a new DMC)....anything else from them is 2nd fiddle in my mind (SFIV or the like not withstanding). Maybe if Capcom actually invested in making things that the fans want to see they'd actually see their revenue bounce back.

Ninjiz
Ninjiz

Wow.. some of you people can be such lemmings I swear... How Is Lost Planet 2 a flop?? Most of you have never played the game, and youre already jumping on the GS bandwagon. Why did you choose this particular review to believe in?? The Original LP got the SAME basic scoring.... 6s, 7s, and 8.5s. LP2 is getting 6s, 7s, and 8.5s.. Im not concerned about GS' 5 given the whining from the reviewer. THe things he moaned about where pretty much in LP1. The long stun animations from being knocked down.. he goes on and on about it, yet doesnt mention that YOU CAN ROLL TO AVOID IT!!! A big akrid claw is coming at him, and he doesnt roll, then moans the penalty is too high. And Seriously?? He thinks you should be invincible when throwing grenades?? Oh sorry, your machine gun fire to my face shouldnt prevent me from throwing grenades.... Anyways... my point being, if you liked LP1, youll like LP2... if you didnt like LP1, you wont like LP2. LP1 got mixed reviews, and so is LP2.. who is surprised??? Why all of you are spelling doom and gloom for LP2, when A) you havnt played it, and B) You focus on the worse review..is beyond me. LP1 Average score was: 78% LP2 Average early score is: 73% How that is abysmal is something i dont understand.

justhat1
justhat1

when you keep repeating the same medicore game designs and uninspired game play, thats what happens also someone said they need to clean house, well maybe some new blood is needed in the company plus better management decisions also i understand the need of new ip's but stop rushing out these games before they are beta tested and jerking the gamers with dlc ripoffs.

devilscry
devilscry

from what i understand SSF4 is doing fine, and hopefully DR2 isn't too little, too late. Still looking forward to MvC3 though,

meateater79
meateater79

Oh, crap! I forgot about Dead Rising 2. I hope the mediocre Lost Planet 2 isn't a herald for DR2. It was one of my favorite games when I first got my 360, and I'm very much looking forward to it.

CHADbomb
CHADbomb

Can the main character of Dark Void be in Marvel vs. Capcom 3?

Sins-of-Mosin
Sins-of-Mosin

They need to clean house and get rid of the people who are making these awful game design choices. I have little faith in Dead Rising 2 at this point.

BK-Sleeper
BK-Sleeper

So that means no more rehashed sequels?

thenephariouson
thenephariouson

Just a demonstration that people expect more than mindless,shallow, linear shooters.

freema
freema

Holy crap! And Lost Planet 2 hasn't even bombed ... yet. A LOT of bad decisions on the part of Capcom lately. Obviously the multiplatform thing just ain't working. SO why don't you guys make another Devil May Cry game? BUT make it exclusive to Sony, for old times sake :) .

diggyman
diggyman

Yeah. the new Bionic Commando was sketchy (the new side-scroller was okay though), and so was Dark Void. I'm still in support of the company. Cant wait for that MARVEL vs CAPCOM 3.

ffviiifreak
ffviiifreak

Capcom is still on my good list as well they just made some bad investments lately.

Trogeton
Trogeton

capcom is still on my good list

McNeelyJ39
McNeelyJ39

They have a few good games coming out, I think Dead Rising 2 may perform well. Granted I thought the same of Lost Planet 2 until reading the reviews... I did like Bionic Commando though, but it should have been sold as a $40 game instead of a $60 game. I may have bought it then instead of waiting for it to hit $20.

McNeelyJ39
McNeelyJ39

Well given the reviews of Lost Planet 2 I wouldn't hope too hard for it to push income

cajunstrike
cajunstrike

Agreed. Original Resident Evil installments instead of rail shooters would also be welcomed...

TheKungFool
TheKungFool

rightfully so, Bionic Commando and Dark Void were terrible.

Masta_Rix
Masta_Rix

Oh yea one more thing before you guys stop making games. Please make a wii version of shadow of rome part 2, where we control the swinging of the weapons in wii motion plus and leave in all the gore. thanks.

varunvikram1
varunvikram1

they should have made a new devil may cry game.Profit guaranteed

green_dominator
green_dominator

With games like Dark Void, Bionic Commando and Lost Planet in their stable of games It's no wonder that Capcom is losing money. Dark Void was one of those games that could have been special but somehow they botched just like Lost Planet... Lost Planet, the original absolutely sucked, my friends told me it was better online but I hated the core mechanics enough that I sold it back to Gamestop. Now that the sequel is out I bet it won't be long before we hear Capcom squeal over that games failure..... I'm not a Capcom hater, I know they can make games, Resident Evil, Marvel vs Capcom and Street Fighter series are all massively successful with millions of fans all over the world but their latest trend of bad games needs to stop. I think Capcom should go back to what they do best, Survival horror and Fighting Games......

hunter8man
hunter8man

They shouldn't have put all that money into advertising a game that wasn't very good. In fact, Dark Void was rather boring and BC was flat-out terrible.

omegazx100
omegazx100

who cares about multiplayer its to much work waste of time about that & the other problem's on the is trust ok i agree with that but still love this game dispite of what your saying about how bad it is i support it just need more work to be done with

Trainz2006_fan
Trainz2006_fan

I think everyone is allowed to have an opinion but i thought Dark void and Bionic commando were terrible games.

jarule88
jarule88

OFC they won't succeed if they only make games for consoles.. PC gaming is still best, and I think it will stay that way for a long long time

organbank
organbank

Time for Capcom to make Monster Hunter for PS3. I would really like to know the genius who canceled it in the first place. I sure do hope he or she does not work for Capcom anymore!

5h1nj1
5h1nj1

Release SSFIV on PC and I'll help you with income, Capcom. :p

grimm201
grimm201

The only ones who've given Lost Planet a good review were GI. And they are owned by Gamestop, so not really reliable. Wasn't gonna buy it anyways, the first one was meh. Oh well. Hope they didn't screw up the Dead Rising sequel too.

gamer082009
gamer082009

Thir really gonna be through when Lost Planet 2 tanks in sales. 5.0 game with a high budget to make I believe..not a good thing.

BoogieManZero
BoogieManZero

I would feel a lot more sorry for Capcom if they'd put out a single good game this generation. To be honest a lot more worth while studios have gone under for me to shed a tear for somebody who is still making loads of money on games that just aren't that fun to play.

Doolum
Doolum

Tough luck Capcom!hate to see them not making profit and hate them for cancelling the PS3 Monster Hunter. Was looking forward to Lost Planet 2 but looking at the review and comments around,doesn't seem to be a good idea to have it now.

Adam_the_Nerd
Adam_the_Nerd

Well I guess when you think about it, they really had no major titles in this fiscal year. And all the franchises they continued or tried to start were major disappointments. Lost Planet 2 is not nearly as good as Lost Planet, Dark Void wasn't what it was supposed to be, and the countless lame Wii titles didn't help either.

MetallicFPSNut
MetallicFPSNut

I somehow doubt that Lost Planet 2 is going to help them meet expectations, since it's getting slammed for basically being no fun.

2bitSmOkEy
2bitSmOkEy

Nice to see a company get what they deserve for selling out. Anyways I just want an actual survival horror resi game and then I will be happy :)

jhcho2
jhcho2

Capcom isn't a developer like Blizzard. The quality of their games can swing anywhere from bad to good. Bad - *cough cough* Lost Planet 2. Good - SFIV & Resident Evil. I would expect their monthly or annual profits to exhibit this pattern. But as long as they are not continuously losing money, i think they are alright.

hotfiree
hotfiree

Thats what you get for not putting monster hunter on ps3 so im glad this is happening. And also for doing stupid things like punishing the ps3 version of a game because the xbox version cant fit everything.

Tso11
Tso11

Marvel vs Capcom 3 won't save them, i'm sure its gonna be just as broken as the 2nd. What I want to see is Capcom Vs. SNK 3 for crying out loud. At least a XBLA remake of the 2nd one.

TheoleDominion
TheoleDominion

thank goodness Marvel vs. Capcom 3 is on the way...lol. Of course that won't single handedly save the day, it's real shame that Lost Planet 2 got such bad reviews. Let's hope Dead Rising 2 does better.

mightycloud
mightycloud

A new Strider game would boost sales :) well for me at least. They've shown that re-making/imagining of old titles can be a bit hit or miss though (but it does depend on if they do it in-house or outsource it). That said Dark Void was at least an attempt to try using new IP to start building new franchises on, and sometimes it can pay off like Dead Space for EA, so at least they're not just churning out sequels constantly year after year (I'm looking at you Bobby).

jtthegame316
jtthegame316

i quite liked dark viod when i played the demo

Darkmoone1
Darkmoone1

And here I thought they were doing great!

BRBaracus
BRBaracus

Yea. Dark Void was HUGE disappointment !

Quietpower09
Quietpower09

[This message was deleted at the request of the original poster]

expatriat
expatriat

they should make a new maximo, if they made maximo 3 ill buy 2 copies, that will boost their profit by 0.1%, i think.....

HerbalVideogame
HerbalVideogame

Anyone ever play Duck Tales on the NES? That game was SWEEEET!

HerbalVideogame
HerbalVideogame

I'd like to see a new Breath of Fire, not like Dragon Quarter either. Something new and kick butt from Shinji Mikami would be nice as well. And they definately shouldn't have let go the Grasshopper Unit, or Clover. They are victims of their own demise. I think they should really give a 3D Megaman another shot with a bit more quality this time, and a faster pace.

gvenom628
gvenom628

Well IMO that's what they get for releasing lack-luster titles like dark void and Lost Planet 2, they should just stick to the fighting games, n give us street fighter fans what we really want, Street fighter 5 and Marvel VS Capcom 3! I mean the last Resident Evil game was just terrible, n I used to love RE.