Capcom profits on the rise

Zombies and monsters mean money as publisher posts improved results for the holiday quarter.

by

Capcom today announced its financial results for the quarter ended December 31, 2005, and the results were looking up over last year's numbers. Revenue was up almost 13 percent to 47.9 billion yen ($404 million), with net profits of 7.4 billion yen ($62 million), more than four times what the company posted for the same quarter last year.

The company cited strong sales of Resident Evil 4 on the PlayStation 2 and Monster Hunter Portable on the PSP (to be released as Monster Hunter Freedom in the US) as main drivers of its game revenue. Capcom went so far as to issue a pair of separate statements touting that it has shipped 3 million copies of its latest zombie shooter for the PS2 and GameCube and 500,000 copies of Monster Hunter Portable. While it didn't divulge any numbers, the company also said Mega Man Battle Network 6 for the Game Boy Advance was selling well.

However, the biggest impact on the company's profits over the same quarter last year was made not by game sales, but by taxes. Instead of paying out 1.7 billion yen ($14 million) in corporate, local, and enterprise taxes, as it did for the previous holiday quarter, this year the company actually added 2.1 billion yen ($17.7 million) to its bottom line in apparent tax breaks. Before taxes are figured in, the company's profits increased a more modest 66 percent from 3.2 billion yen ($27 million) to 5.3 billion yen ($44.7 million).

As for the future, Capcom reiterated its previous projections for its current fiscal year (ending March 31, 2006) but said that its numbers might be affected by "the aggressive action of foreign game manufacturers," an especially severe winter, and even the Torino Olympics. In less-than-shocking news, Capcom also said it would continue its multiplatform strategy and streamline its development efforts to offset the rising cost of making games.

Discussion

41 comments
olthof
olthof

Good work, i never really have been a fan of Capcom till they had to balls to bring Resident Evil to gamecube. They deserve it.

brfan
brfan

Even though RE4 is the most overrated POS in years, I'm glad Capcom is doing well. I'm a huge RE fan, and really want to see them redeem themselves with RE5, and I can't wait to see DMC4 especially after how awesome DMC3 was.

19682685635022650119595314255397-kqlyn
19682685635022650119595314255397-kqlyn

3 million copies of RE 4 sold and the PC version hasn't even released yet. That means the franchise has a great future (in other words... more sequels, yes!!!). Too bad the Xbox fanboys will never get to play RE 4. Haha! TLHBO

Seraphim_24
Seraphim_24

"halvedlife I guess it payed to port Resident Evil 4 over to the Ps2. smart move" Actually if you look at the sales charts for the year of 2005 RE 4 debuted at # 1 on GameCube and stayed there through to February before dropping down a bit and was on the top ten through March where as the PS 2 version debuted at only at # 3 and dropped off teh top ten alltogether inside a month's time. Convienently you should be able to look up those sales charts here, provided this site keeps a back log of them. The GCN version sold better and the charts prove that.

chrisdojo
chrisdojo

yo capcom...... release a GOOD mega man game and you will see your profits rise even more!!!

fierro316
fierro316

I love CAPCOM. Bring Street Fighter 4!

Nick52B
Nick52B

It seems they are making enough money. Any chance of them releasing more Phoenix Wright games for DS? You never know, they might acually invest in some advetising for it.

AzureLivesOn
AzureLivesOn

Good job, Capcom! Lord knows you deserve it. RE4=brilliance.

azizrulez
azizrulez

that was bound to happen as RE4 did so well alone

gunner2200
gunner2200

now that they have so much money they can finally retire the old megaman games and make more that are like Megaman Legends 1 & 2. Those were awesome.

Poochie0709
Poochie0709

I wonder what the separate sales data is between RE4(GCN) and RE4(PS2)

owner211
owner211

I love Zombies!!!! and capcom!!!andTOAST!!!! if you kill a piece of toast it comes back as zOmBiE tOaSt!!!! hooray for zombie toast and capcom and stuff!!!!!

Game13a13y
Game13a13y

good job Capcom, make more games like RE 4 !!

FuguNabe
FuguNabe

Where's the game that popularised Capcom in the early 90's, Street Fighter. Please no more slapped together collections. Bring on Street Fighters 4 for the arcade followed by a port a year later on all system.... aaaaaargh. How about a fully realised 3D STRIDER that plays similarly to Ninja Gaiden. It would make an awesome game. I want also a 2D GBA or DS remake of Bionic Commando. All I see these days are rushed Megaman and Zero games and well... Resident Evil. As much as I respected Capcom in the 90's the've certainly no longer the same Capcom I grew up with. DMC is okay but the have so much more recognisable characters under their belt. Why make the DWish Sengoku Basara series when they can do something more creative?... leave Koei to do the DW series as they actually do it right. While Resident Evil 4 was a success and had better gameplay mechanics it didn't feel like the Survival Horror of what Resident Evil originally was about (story felt almost unrelated too). Capcom has lost much creative juice and is milking what they deemed as cash cows. They can easily get some old face back into new games if they so choose. C'mon Capcom. Getting the $$$ is good and I congratulate Capcom for it. I however which they would earn it with more effort into new original games and resurrecting some of their old greats in all new games as well.

TacoJelly
TacoJelly

I bet if capcom kept Resident Evil 4 as a gamecube exclusive it would have moved more gamecubes... but I guess money is the overall deciding factor.

AlexWills
AlexWills

even though they signed with XBOX I still think they're the best team out making games. ( and if there's anybody at Capcom reading this you can send me some free games for this free publisity...jj ^.^ )

neoand12
neoand12

capcom could still do better

Orasion_Seiz
Orasion_Seiz

i know Capcom will do well from the start when they release RE4

cyprus646
cyprus646

Better then Ea's finances LOL.

MeTaL-HeaD
MeTaL-HeaD

Well Duh, with games like Devil May Cry 3 + The Special Edtion and Resident Evil 4 out on the Gamecube and on PS2 who couldnt guess it. Capcom Keep Rockin Baby!!!

frankeyser
frankeyser

they are in my top five developer list.

Donkeljohn
Donkeljohn

Resident Evil and Street Fighter to the rescue.

Sturm08
Sturm08

I wouldn't call capcom a sleeping giant.

TargetDog
TargetDog

What the hell do winter and olympics have to do with anything?

LordAndrew
LordAndrew

A game company actually making money? Oh, but not from games. Um, okay.

frankeyser
frankeyser

i dont think that capcom is really in microsofts corner all that much...

redxwarriorxxx
redxwarriorxxx

Capcom is going in a good direction hopefully the sleeping giant will awaken.

automaticsnake
automaticsnake

Good cuz i love capcom, im a big fan of their Resident Evil and Onimusha games.

danharrison
danharrison

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

danharrison
danharrison

Good for them. They were easily the most impressive developer during '05 and they fully deserve the profits they are now making.

StealthyBurrito
StealthyBurrito

I'm glad the Xbox finally has Capcom in their corner. They make some excellent games!!!!!!!!!!!!!!!!!

mythrol
mythrol

Good for Capcom. It's nice to see a gamecompany that does something other than make football games end the year with strong profits.

DargusLacroix
DargusLacroix

uuuuhhhhh meischris.........rocket knight adventures is made by konaim, not capcom, and also, i own that game..ROCKET KNIGHT FOR XBLA PLZ!!!!

meischris39
meischris39

That means more re to fund so woooooo capcom bring back rocket knight adventures

halvedlife
halvedlife

I guess it payed to port Resident Evil 4 over to the Ps2. smart move.