Capcom lowers profit forecast

Publisher drops annual profit forecast due to 1.7 billion yen in back taxes and poor overseas sales.

TOKYO--Today, Capcom has made last-minute downward adjustments to its annual forecast for the fiscal year ending March 31, 2006. The company has lowered expectations of its consolidated gross income from its earlier forecast of 7.4 billion yen ($63 million) down to 6.4 billion yen ($51 million). As a result, its consolidated net income has also taken a plunge from 8.9 billion yen ($75 million) to 6.5 billion yen ($55 million).

In a statement made to investors, Capcom explained that the revisions are mostly due to a 1.7 billion yen ($14 million) tax audit based on transfer pricing adjustments from the Osaka regional tax bureau. The bureau ruled that Capcom failed to report 5.1 billion yen ($43 million) in earnings for March 2000 to March 2005. Capcom disagrees with the assessment and plans to file an appeal to the regional tax authorities.

However, Capcom stated that poor performance in the North American console game market and weak game sales in Europe have also affected its net income for the fiscal year.

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45 comments
Impostorzim
Impostorzim

Capcom has it tough. I really don't want this company to die on me, or even worse...*Looks at Microsoft*

vasquezinus
vasquezinus

this industry is hard - not really their fault... and knowing capcom, RE4 for PC won't just be an exact port :) the'd never let that happen - so lets just sit tight

Razzi65
Razzi65

we love ur games...... thats not coolll

Hillsy_
Hillsy_

Give Capcom the respect they deserve, they have been producing some of the best titles long before some of you were even born. For me, they are one of the best software developers in the industry. Resident Evil 4, U.N Squadron, Final Fight, Ghouls & Ghosts, Devil May Cry, Street Fighter, they have produced some of the finest games and one who deserve respect. Capcom will be fine because they produce original concepts when required and they tackle situations well when the need arises. Resident Evil 4 was a good move, brave considering the original concept for the game. Also was Viewiful Joe, Devil May Cry and the original Onimusha. Has anyone seen Okami yet? I truly hope the above statement is untrue, because without Capcom the games industry would be a much sadder place.

ChargeMan1991
ChargeMan1991

Did someone just leave a comment earliar that MegaMan is old?

beldugo
beldugo

i want marvel vs capcom 3 , capcom vs snk 3, street fighter 4, NO MORE MEGA MANS THEY ALL SUCK SINCE X4!!!.. and of course some new stuff.. i love how lost planet looks and plays. all these anthology , trilogy and blah are worthless most of us who buys fighting games already have them in our collection. if it brings online? then i use a pc/emulator its free. btw ps2 controller suck for fighting games i'm sorry. the D-pad buttons are apart you cant throw a shoryuken right. forward down forward part is hard to do.

hitman187x
hitman187x

Everyone goes through a slump now and then. Just ride it out. This is a vicious industry. Capcom isn't done yet by a long shot.

Drevan
Drevan

one other thing, if Capcom supported the Xbox better they'd have much better sales. RE4 on Xbox would of sold tremendously.

Drevan
Drevan

I have a feeling Dead Rising will sell well when it's released in June. And everyone I know that has a x360 is going to buy Lost Planet, unfortunately that doesn't hit the US till spring of 07.

Revelade
Revelade

What's this about new IPs? They give Killer 7, a game that blows all others out of the water, yet nobody buys it... People obviously like playing "SHOOT GAME SEQUEL 23423423", rather than try something new and support innovation.

VGamePlayer-91
VGamePlayer-91

Capcom should bring some old classics. They should make the SF Anniversary for ps2 online with like some adapter. Because Xbox controllers is horrible for fighting games, i dont why did they make that sf:a version online. So, thats a tip. Another tip would to make a compliation of final fight. Final Fight 3 was the best final fight out there. They need to stick to roots. ONE good move they made was the SF: Alpha Anthology thats comin out for ps2. Hopefully that would be online. Also, back to what i was sayin about stickin to roots. For example look at the new final fight for ps2. That game is horrible. It only has a slight similarity with the original story line. They should've made a compliation or at least make it a 2d with 3d background or sumtin like that. Capcom is and always will be my favorite game company. I've loved the company since Street Fighter 1 on the Arcades. If capcom Sticks to their roots, They will be back on track !

VGamePlayer-91
VGamePlayer-91

Capcom should bring some old classics. They should make the SF Anniversary for ps2 online with like some adapter. Because Xbox controllers is horrible for fighting games, i dont why did they make that sf:a version online. So, thats a tip. Another tip would to make a compliation of final fight. Final Fight 3 was the best final fight out there. They need to stick to roots. ONE good move they made was the SF: Alpha Anthology thats comin out for ps2. Hopefully that would be online. Also, back to what i was sayin about stickin to roots. For example look at the new final fight for ps2. That game is horrible. It only has a slight similarity with the original story line. They should've made a compliation or at least make it a 2d with 3d background or sumtin like that. Capcom is and always will be my favorite game company. I've loved the company since Street Fighter 1 on the Arcades. If capcom Sticks to their roots, They will be back on track !

blackIceJoe
blackIceJoe

If Capcom could bring the other Phoenix games over to the US it would be doing a lot better. Megaman is getting old they need new games and Phoenix Wright can be it. though it could be better if some one read the text other then me having to read the whole thing.

Vash67
Vash67

I'd say it's an April Fools joke but it was it's yesterday's date. I mean.... they recently released a bunch of games on the PSP but all are remakes. They need new stuff. Bring back Dead Pheonix!

Magtiger
Magtiger

THIS IS AN APRIL FOOLS JOKE. CAPCOM'S PROFITS WERE ON A DRAMTIC RISE NO LITTLE THAN A MONTH AGO.

MysticGenie
MysticGenie

QUOTE=n64nut Capcom needs to create some solid new IP's and stop relying on RE. As much as I love RE, they really need to take their time with RE5 and fix the many problems that plagued RE4. ___________________________________________________________ Fix many problems that plagued RE4? What the hell are you talking about?! RE4 is one of the most polished games I've ever played, and I don't see anything wrong with it.

Jxy
Jxy

QUOTE - Blazer88 QUOTE - Jxy Of course their games aren't selling that well in the North American market -- most people here are idiots. ___________________________________________________________ No actually we are smart,..well except for you I guess and your rather unintelligent statement backs that up.Only a idiot,.or a mainstreamer buys Capcoms,.or any other publishers games when all they do is give more of the same year after year.For real gamers that only works,.and satisfies them for maybe the first sequal or two,..after that,..Capcom has always been one of the worst offenders in this department. ___________________________________________________________ Right.... while they do rehash games once in awhile, they make more than enough original titles unless you want to tell me that the entire Onimusha, Devil May Cry, and Viewtiful Joe series were all rehashes of older games and that Resident Evil 4 offered nothing new. And most of Capcom's games aren't aimed at the mainstream... I seriously doubt that people will look at something like Devil May Cry the same way they'd look at a GTA, Halo, or other crap game. And based on the fact that your collection consists almost entirely of PC games, it's clear you really have no idea when it comes to Capcom.

pilouuuu2004
pilouuuu2004

There is a simple solution for that: Street Fighter IV!

Magtiger
Magtiger

......Guys, this is an obvious april fools joke. Capcom's profits have been on the rise for a long while now.

966305
966305

capcom, needs new blood to rebuild the franchises and company

WeeWeeJumbo
WeeWeeJumbo

Capcom was golden during the eighties, where it built its gaming credentials. During the nineties, it hit this weird, sickening Street Fighter/Mega Man rut that caused no end of sighing and heartbreak among real gamers. But in the last few years, Capcom has been busily reinventing itself with stunning updates to flagging franchises (Mega Man and RE4) and great new IPs (Viewtiful Joe, Killer 7) along with the PS2 mainstay, DMC. I think DMC3 would have been the mega-hit it should have been in the States if it didn't have such flashy, accessible competition. It was simply overshadowed by that game we will not name, because there is no need to name it. I was a big-time Capcom fanboy when I was a kid, and it's exciting to see them returning slowly to their former greatness. It's disappointing to see their noble (and skillful) maneuvers being rewarded by gamer apathy. For my part, I bought DMC3: SE and both Viewtiful Joes new (a friend gave me his copy of RE4. What was I supposed to do? Say no?) and I haven't regretted any of these purchases for even a second, as each one is a testament to Capcom's comeback. Yeah, there's still Capcom dreck out there; there are still too many Mega Mans, and we all knew FF: Streetwise was going to be bad when it was still in development. Of course, Final Fight was always a bad game. However pretty the graphics, doing the same three moves plus a jumpkick for seven or eight levels sucks; and it sucks hard. But it's far too early to begin counting Capcom out. It takes years of consistent suckitude to take down a company like this.

Kayrod29
Kayrod29

I'm not surprised, they haven't released a good game in a while.

ANewChallenger
ANewChallenger

For those who claim Capcom put out worthless garbage and rehashes last year: Harman Smith and Wright & Co. Law Office beg to differ.

Robio_basic
Robio_basic

Well despite not meeting their goals, I think everyone is taking Capcom to task a little too easily here. They still made 55 million dollars in profit. 55 MILLION DOLLARS. It's pretty hard to say that a company that made that much money in net profts did something wrong.

Blazer88
Blazer88

QUOTE - Jxy Of course their games aren't selling that well in the North American market -- most people here are idiots. ___________________________________________________________ No actually we are smart,..well except for you I guess and your rather unintelligent statement backs that up.Only a idiot,.or a mainstreamer buys Capcoms,.or any other publishers games when all they do is give more of the same year after year.For real gamers that only works,.and satisfies them for maybe the first sequal or two,..after that,..Capcom has always been one of the worst offenders in this department.

drangel_jam
drangel_jam

Capcom and Sega are sometimes very strategically lackluster. If they would make triple release of all of its best titles in a timely fashion (within 4 or 6 months), Resident Evil series, Onimusha, and Devil May Cry, (Sega's Shenmue, Sega Rally, Panzer Dragoon, Sonic, Phantasy Star Online, Virtua Tennis,) etc... they all have potential to be platinum best sellers on every every system as long as they truly take advantage of the system capabilities (graphics, power, XBox-Live, custom soundtracks, EyeToy, whatever...). Learn from Ubi-Soft for god's sake! Look around, see what the successful competition is doing right that you might not be doing as well. Tom Clancy games are different on different systems for example. They try to explore the capabilities of every console. Ultimately, Capcom and Sega exclusives are what kills them. They have so many great franchises. It's such a SHAME! (...and for the reccord, I'm tired of seeing Street Fighter reharshes! It's my favorite game of all time. I was waiting for the PSP game to be a new entree in the series, but no! Capcom had to go back in time and bring back one of the best 2D games of all time for once again. How about moving on!? Most people who would justify a PSP acquisition had probably already owned at one system that had Street Fighter Alpha 3 (PSone, Dreamcast, game boys...) New property please!)

sigma8
sigma8

I don't think one off year is enough to write off Capcom. They're still one of the stronger companies out there. They should make a street fighter MMO. Where everyone meets in Fight Club'esque joints in a virtual world and beats the crap out of one another online. We've got MMORPG's, and kinda-sorta MMOFPS (planetside).. Where are the MMO3DFightingG's?

mhder
mhder

I'd take the kiddy Megaman over that "realsitic" looking final fight. It's funny how graphics are "required to look realistic" by some people yet they think it's perfectly fine for someone to be continuously be beaten over the head with a metal object and not die... very realistic.

DiscGuru101
DiscGuru101

Just wait until 'Dead Rising' and 'Lost Planet' comes out. Those babies are gonna sell like hot cakes.

NeoJedi
NeoJedi

And down we go... that is really too bad for Capcom.

PrincKassad
PrincKassad

Capcom needs to do something they should have done from the 80's. Release a new Bionic Commando :-) Where are you bionic joe???

MiKaNoH
MiKaNoH

i hope this change, Capcom deserves better...

Jxy
Jxy

Oh, and F1sTDaCuffS, Capcom hasn't been riding Street Fighters Back. There's been a couple rereleases, but Capcom's put out far more original games and hasn't released a new SF since 2000... that's hardly riding the game's back.

Jxy
Jxy

Of course their games aren't selling that well in the North American market -- most people here are idiots.

Phazevariance
Phazevariance

Once again, because it costs so much to make games now a days ,companies are affraid to make a new genre or type of game because if it flops, they will lose a lot of money and possibly over a short period of time, go under. Someone such as Nintendo with the Revolution, and having it able to use the gamecube code, allows games to be created without having to learn how to program for new API's making the cost of games cheaper.

Cheaper development costs = less of a loss to developers = more chance of new concepts = more fun for all.

As far as I see it, sony and microsoft should be preaising Nuntendo for allowing their company to take a fall at the chance of bringing new life into the gaming indusrty. Once a game takes off on Revo, it "may" make it over to the other two systems eventually and draw more money for M$ and $ony also.

n64nut
n64nut

Capcom needs to create some solid new IP's and stop relying on RE. As much as I love RE, they really need to take their time with RE5 and fix the many problems that plauged RE4. I agree that Onimusha should have ended with the third one; I played Dawn of Dreams and didn't like it much at all.

F1sTDaCuffS
F1sTDaCuffS

well, how long can you ride street fighters back, they've had plenty chances to change there game. they've made there own bed. im sure its only a matter of time before we say bye bye campcom.

YukoAsho
YukoAsho

Megaman Powered Up is probably one of the bright spots on their portfolio of late. The fact is, Capcom's not been a very good publisher of late, with the exception of the PSP Megamans and of course RE4. They published a lot of trash last year. If they adjusted the signal to noise ratio of their games, they'd do better in the West I think. And "kiddy" games are desperately needed to bring new people into the fandom. This industry can't continue to grow if it only caters to 15-28 year old boys.

chrisdojo
chrisdojo

maybe they shouldn't have release teh kidday graphics mega man game on psp. i'd like to see sales #'s on that.

Donkeljohn
Donkeljohn

That is a significant downward adjustment.

Archive2000K
Archive2000K

this might have happened because Capcom needs to stop thinking Resident Evil, (even though it's a great game) and Onimusha (which should have stopped at 3 personally) and reinvent some of their old franchises or even continue them. Maybe if SNK does good then they will get back into their rivalry with them.

pedjan
pedjan

And the point is... ?