Capcom cuts profit forecast in half due to "rapid changes" in the games market

Dead Rising, Resident Evil publisher halves earnings forecast and now expects to post a "special loss" for the year.

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Dead Rising and Resident Evil publisher Capcom announced today that it had slashed its profit forecast for the year ending March 31 (today) by a whopping 51.5 percent due to "rapid changes" in the games market. The Japanese publisher previously expected to post a profit of ¥6.8 billion yen ($66 million) but is now anticipating net income of ¥3.3 billion ($31.9 million), a dropoff of ¥3.5 billion ($33.9 million).

Capcom's expectation to post a "special loss" for the year primarily came down to the company's struggles in the mobile business, the publisher said.

"Due to rapid changes taking place in the market for games, Capcom is building a sound base for earnings by reorganizing the product development framework and improving development processes. These are two core elements of the company's operations. The objective of these activities is to earn consistent earnings in each fiscal year. However, these initiatives have not yet started to produce benefits mainly in the Mobile Contents."

At the same time, Capcom raised its net sales (revenue) forecast for the year from ¥97 billion ($939 million) to ¥101.5 billion ($983 million), an increase of 4.6 percent. Capcom attributed the uptick in its sales forecast mainly to "strong sales" of Monster Hunter 4, as well as the "highly successful" slot-machine game Monster Hunter Gekka Raimei.

"Sales are expected to be higher than one year earlier due in part to the launch of major titles," Capcom said. "However, Capcom anticipates declines in operating income, ordinary income, and net income because of increases in the cost of sales and selling, general, and administrative expenses."

One of Capcom's latest major titles was Dead Rising 3 for the Xbox One. That game has shipped over 1 million copies to date.

Eddie Makuch is a news editor at GameSpot, and you can follow him on Twitter @EddieMakuch
Got a news tip or want to contact us directly? Email news@gamespot.com

Discussion

167 comments
akuma12345
akuma12345

This is what greed get them, They ignore the Fans and their core gamers. They wanna target their games with the "C.O.D" Group or more causual ... LOL

DMC, Crap DLC, Cancel MegaMan, Low Quality games with overpriced.

Karma Bitches ;)

Algearond
Algearond

Maybe they should get back to RE type games and this would correct their issues?

nicecall
nicecall

hey capcom, bring us a next gen Contra, UN Squadron game please.  No more crappy zombie games or endless street fighter re-releases.  Nice job on Ducktales also capcom, that was a failure in so many ways.  Keeping broken dated gameplay in games leaves us all with a semi retarded remake.

Nepti
Nepti

Please God don't let this stall or cancel a Dragon's Dogma sequel.

mr_nee
mr_nee

So DR3 is such a great game that despite bone platform vacuum noone is buying it? what a shame!

mlp071
mlp071

I guess when going for casuals , dumbing down games, ignoring your core population and producing sub par games doesn't work , you call it change in the market...


THQ has something to say about it...

Dragerdeifrit
Dragerdeifrit

square-enix learned the hard way and now they are going back to their core market, now its capcom turn.

playstationzone
playstationzone

I think capcom should cut all there dlc and put in disc on there future games and maybe put ghost N cobilns in HD because i think will sale a lot with the online leaderboards.

playstationzone
playstationzone

capcom will face bankrupht and we got know who pick up res evil   or dead riseing or street fighter series.

lim30041982
lim30041982

Damn DR3 not sell well ? , what do you expect by make it exclusive to xb1 ur own fault capcom.

Shipped 1 Million copy ? very embarassing hell even indie like state of decay sales number are about the same (sales not shipped) but with far more less development cost.

Thanatos2k
Thanatos2k

Rush Capcom into a coffin.  They deserve it.

chev9341
chev9341

I blame this whole "Westernization" strategy that big name Japanese gaming companies have utilized for over half a decade now. Lack of communication between Western fans and Capcom made the company only listening to sales numbers as oppose to the reception itself. Which lead to Capcom going from bad to worse with RE5 to RE6. Capcom was also under the impression that Westerners love DLCs and that caused Capcom to preform a bunch of crap Day 1 DLCs because they think that it would make their games more appealing to us Western fans. Fun fact about DmC: Capcom only rebooted DMC because they wanted to make the game more appealing to Westerners. . .Oh and they wanted more money because the 2.4 million in sales that DMC 4 made wasn't greedy enough.

Capcom is by far the worse, but they're not the only Japanese companies that suffered. Square is second to Capcom in terms being on the shit list. Konami also followed suit by having Mercury Stream work on the Castlevania series. Those Lords of Shadows games aren't bad, but certainly not amazing. 


Japanese companies need to fucking stop with this. No progression has been made with this new approach to Japanese gaming, all it's been doing is bringing everything down. Turn back now before it's too late.

pound-u
pound-u

This is what happens when you drown your games in DLC.

FallenOneX
FallenOneX

You mean the new Strider game that couldn't be made for the Wii U (a system with almost no 3rd part competition) wasn't enough??????

Nope, not bitter at all about that one.....

teller76567
teller76567

Well resident evil 6 was just trash when will they ever make a better resident evil game?  It goes to show how many people they ticked off. How come they just won't bring back the original zombie? i would recommend things but a Japanese person will not listen  to a Westerner. Yet alone a gamer that grew up on their original IP's

King_Wii
King_Wii

Their latest releases haven't appealed to me. Now if they release a Breath of Fire game or Dragon's Dogma 2 they'll get my money for sure.

eva02langley
eva02langley

Too much zombies... I guess that Ultra Street Fighter is really going to make a change...

CriticalCritic
CriticalCritic

The "rapid change" is that people have access to the Internet for reviews so they won't buy every piece of shit game you throw out (Resident Evil 6, Raccoon City, and every thousandth version of fighting game you release). The plethora of day 1 disc-locked content will doesn't help either.

krystyla
krystyla

Time for MS to pull out their wallet...

NikBZero
NikBZero

I for one won't shed a tear when Capcom goes the way of THQ having to sell their IP's off to better companies.

atopp399
atopp399

They do nothing with the Megaman franchise and they sit on Monster Hunter 4 for years before releasing outside of Japan.  Add to that they basically ruined Resident Evil.  They really need to be sold to a company who can make them great again.

TenraiSenshi
TenraiSenshi

Company changes the way in which they approach game development by focussing more on money making and less on quality. Games fail to sell because of a lack of said quality. Company blames the market.

Seems legit.

dnmt
dnmt

Maybe they shouldn't release their best games on shit platforms only.

Hurvl
Hurvl

Dead Rising, but not Revenue Rising, huh? I don't know what these "rapid changes" mean or if it's just a way to say that their games aren't as good as they used to be, without fully admitting that.

Richie_Kotzev
Richie_Kotzev

the reason capcom is losing it is due to their disrespect for their customers, trying to sell the same game over and over with super ultra mega and hyper editions. in fact, they do it since the 80's, just look at how many street fighter II versions were released.  it worked for over 20 years, but no more. customers are fed up with it, as I am. I don't support capcom anymore and I would simply download their stuff for free without feeling any remorse.  we need quality and price. if you are daring to release a dlc, release a consistent one. not some small stuff that won't add anything significant to the games and just rape our wallets.

Chr0noid
Chr0noid

I love when good news gets reported on GameSpot.

HowlPendragon
HowlPendragon

Hate to break it to ya Capcom, but it isn't the industry's fault. Its yours.

Hillsy_
Hillsy_

Thanks for Dragon Dogma Dark Arisen Capcom, one of the three best RPGs of last gen.  Demon's Souls & Dark Souls being the other two, all Japanese RPGs.

sanchango
sanchango

@nicecall  DUCKTALES COMPLETE EDITION CONFIRMED! ULTRA STREET FIGHTER IV TURBO ARCADE HD REMIX EDITION CONFIRMED!!

chev9341
chev9341

@FallenOneX That game didn't even offer d-pad support. How fucking stupid is Double Helix.

chev9341
chev9341

@King_Wii I take it that you are now aware of the latest Breath of Fire game. . .Which is a mobile game. 

TheGreatGhoul
TheGreatGhoul

@eva02langley

Indeed, that what I was about to say.

They are not in trouble at all.

They will create another Street Fighter Ultra Giga Omega IV that will be the exact same thing than the standard Street Fighter IV and the retarded Capcom fans will buy it anyway...

chev9341
chev9341

@NikBZero As long as the ENTIRE company gets sold to a good company like 2K, I will be happy.

RossRichard
RossRichard

@NikBZero It boggles my mind how a company that has IPs like Ghosts and Goblins, Breath of Fire and Mega Man yet put out turds like Remember Me. What they turned Resident Evil into is heartbreaking, as well.

b1gt0ne
b1gt0ne

@NikBZero  Nintendo better buy Megaman, Monster Hunter, Resi, and Street Fighter

importguy
importguy

@HowlPendragon Indeed... They need to clean up their act. The whole industry, in fact, has to. Call me an old-school gamer, but gaming ain't what it use to be.

FallenOneX
FallenOneX

@Thanatos2k Because I'm the type of person that would like to at least be allowed to say "no thank you", rather than not even having a choice. Especially if there is not technical reason the game couldn't be on the console in the first place.

HowlPendragon
HowlPendragon

@importguy It really isn't. Companies are focusing too much on trying to reel in the more casual market and completely ignore the fanbase they already have. And Capcom seems to be the worst culprit of this practice since they announced their bigger focus on mobile games a few months ago.

I'm glad to see Square Enix is finally realizing ignoring your core audience is a dumb thing to do.

boston_brawler
boston_brawler

@FallenOneX @Thanatos2k  Strider did not suck, and @ a $15 price tag it was well worth the money.  This game was reminiscent of the 2d platform glory days (think Super Metroid & Castlevania: SOTN)  Boss fights could have been better, but overall the game definitely did NOT suck.