Capcom's 'decline in quality' blamed on 'excessive outsourcing'

Publisher will spend 7.2 billion Yen on restructuring as it slashes expectations for Resident Evil 6 and Devil May Cry.

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Capcom has announced it is revising sales forecasts downwards for its current crop of big-name titles, attributing part of the failure on "excessive outsourcing."

The publisher now expects Resident Evil 6 to shift 4.9 million copies, down from five million. Capcom's original sales estimation for Resident Evil 6 was seven million copies.

Ninja Theory's reboot of DmC: Devil May Cry is now expected to sell 1.15 million copies, also down from its original forecast of two million.

Capcom also highlighted a "delayed response to the expanding digital contents market" and "insufficient coordination between the marketing and game development divisions in overseas markets" as reasons for its disappointing sales.

The publisher now plans to more heavily promote its DLC strategies and focus more on internal development.

As a result, the Japanese publisher has warned of a "special loss" in its business as part of a 7.2 billion Yen (£48 million/$73 million) restructuring. Capcom warns that, because of this process, it has "strictly re-evaluated" some currently unannounced games in production.

The results of poor sales and restructuring is that the company has slashed its expected net income for the financial year ended March 31, 2013 by over half: 2.9 million Yen, down from 6.5 million Yen.

Capcom recently announced a two-month delay of Lost Planet 3, which it has outsourced to Spark Unlimited.

Rival Japanese publisher Square Enix has also recently announced a costly bout of restructuring.

Discussion

407 comments
RebeccachuClark
RebeccachuClark

According to the tile of the article, that is true. The huge drop in high quality came from the fact that Capcom decided to hand over some of their IPs (Devil May Cry and Lost Planet) to crappy and stupid Western developers (Ninja Theroy, Spark Unlimited) is just depressing, considering that many gamers were born and grown in the time of Capcom's Golden Age, or even before its Golden Years began.

Plus, Capcom killing off their mascot, Mega Man, and the departure of Keiji Inafune was a very painful kick to an ailing groin.

I mean, Mega Man, the mascot of Capcom, helped the company become one of the biggest game developers in Japan! And I say that Keiji Inafune was, to me, the most important person who worked at Capcom.

The release of Mega Man in 1987 kick-started Capcom's Golden Age. The company's Golden Age was all about creating innovative, unique, and customer-satisfying video games, for many different kinds of platforms, from console to handheld.

Capcom's Golden Age came to an end when its first Xbox 360 game, Dead Rising, came out in Japan on September 28 of 2006.

And, from September 29, 2006 to December 31, 2009, Capcom began winding down. Even though it was, it still managed to deliver great games, such as the first Lost Planet, Devil May Cry 4, Zack and Wiki, Mega Man ZX Advent, Mega Man 9, and others.

I think 2010 was when Capcom began to take a turn for the worst... And, today, ever since Inafune departed from the company, it is nothing but a shell of its former self.

Inafune helped start the company's Golden Age back in 1987 with the creation of the company's mascot, Mega Man. And 1987 was the year that he joined the company.

Many of the company's popular and iconic franchises were created during the 19 years of the company's Golden Age - from Mega Man to Final Fight to Resident Evil to Devil May Cry to Dead Rising to Okami to Breath of Fire to Rival Schools to Power Stone to Viewiful Joe to Dino Crisis to Phoenix Wright to the Disney games to Onimusha...ahhh, the Golden Age was the best one Capcom has ever had in its history.

The Golden Age is what helped Capcom get to the top of their game and it was also the time that a huge fanbase for the company was created. And, at the time of its release, the first Dead Rising was one of the most unique and enjoyable titles on the Xbox 360, and Okami was a great swan song for the Playstation 2. These two games helped make Capcom's Golden Age go out with a bang in 2006.

But, now...I feel utterly sad that Capcom has killed off Mega Man, and is constantly abusing DLC, and milking many different versions of Street Fighter IV.

I'm hoping that it would go back to its old ways soon, like it did in its Golden Age and Winding Down years. I don't want to see it die like THQ did earlier this year...

I miss Capcom's Glory Years...it's a good thing I was born in 1992, when the company was still in its Golden Age.

And with the Devil May Cry reboot, I miss the DMC Universe that Capcom created with the first four games...especially the 4th one. I have the 4th game for my Xbox 360. I am so glad that I didn't bother to buy Ninja Theory's reboot.

The company was founded in 1983, and so, I have created a timeline of the rise and fall of Capcom's Golden Glory.

1983 - November 1987: The Early Years of Capcom (The early years were before Capcom's Golden Age)

December 17, 1987 - September 28, 2006: The Golden Age (This was the company's best-ever era. It began with the very first game in the Mega Man series on the NES in 1987, and it ended with the release of the first Dead Rising title in Japan on 9-28-2006)

September 29, 2006 - December 31, 2009: The Winding Down Period (Although not as much as Capcom's Golden Age, the company still managed to deliver some good games)

2010 - 2011: The Downhill Era (Things began to take a turn for the worse, the Devil May Cry series reboot is announced, and Keiji Inafune leaves the company)

2011: The Death of Mega Man (2 Mega Man games cancelled)

2011 - Present: Complete and Utter Crap Era (The company is no longer the same as it used to be)

I apologize for the long comment, but I had to explain how Capcom went from good to the disappointing and sucky company it has become today. Hope you didn't mind, though! :D

angelbless
angelbless

promote its DLC strategies?... see, now that is where the problem resides... focus

Altis
Altis

hmm They have been conducting mass interviews for designer, programmer and sound designer recently.

I actually liked DmC. DLCs are not my thing though. Vergil's Downfall was ok... but I wished they stuck to the normal 3d cutscenes (or they could have used the colored graffiti wall style + narration)

brucies_bubbles
brucies_bubbles

Maybe it's because of DLC that some people stop buying your games.

I personal wait a few months after release these days or wait for a GOTY edition.

I've got three version of SF4, two of MvC3 and sick of playing games designed purely with multiplayer in mind with no decent single player

edinko
edinko

I guess heavy DLC strategy is exactly what gamers want..or not?

91210user
91210user

Capcom enjoys playing the blame game alot! 'Blame Megaman fans for the Legends 3 cancellation', blame other teams for making bad games and etc. Blame the internet for 'unsupportive behaviour'.

Capcom should make a game about Blaming people!

hinedorf
hinedorf

I bought street fighter 4, within 6 months, there was a new street fighter 4 with more characters. I bought Marvel vs Capcom 3......not long later they brought out a new marvel vs capcom 3 with more characters.

I would appreciate Capcom not making me pay to beta their games at full retail price. But maybe that's why I no longer buy Capcom games

chuchupika
chuchupika

Capcom's game quality really went downhill.  RE franchise really should be stopped around RE4.  They just kept milking it.  They kept milking the DMC franchise.  Not to mention the DLC stunt they pulled earlier with on disc DLCs.  That is why the decision making should be given to the head developers instead of the lousy board executives.  People who don't play games themselves has no business being in this business.  Of course we can say the same crap about game developers not knowing about finance, but that is only a rare case "example from the Duke Nukem guys".  Capcom is no match for companies who produced games like "bioshock infinite" and other leaders of the industries.  Blizzard is also going down that hole, only the SC tournaments are keeping them alive.  Long live for creativity and $ going to the companies that produce quality games.  Anyone can name Japanese developers/publishers not going down the tube?  

si_dn_2010
si_dn_2010

ITS TIME TO MAKE DEVIL MAY CRY 5

Shanks_D_Chop
Shanks_D_Chop

Yeah, DLC strategies... That'll make you popular with the consumer market in general...

majema007
majema007

Y'know Capcom... Playing the victim isn't going to net you milestone sales. Fantastic products usually do the trick for that.

sensei_hEnRY
sensei_hEnRY

i'm a fan of DMC series and i must say DMC: Devil May Cry is pretty good. It still have the same awesome gameplay and humor plus, it actually have a good story and great art direction. Yes, the new Dante looks and act like a jerk but it doesn't bother me much. Of all outsourcing that Capcom has done, Ninja Theory is certainly the best.

About Resident Evil 6 (and 5) which is developed in-house Capcom, let's be honest Capcom, your decision to change the direction of a zombie survival horror franchise into a stupid monster hunter action game is incredibly stupid.

Apastron
Apastron

Breaking News: Capcom realise what gamers and journalists have been telling them for years is true.

RafaDX
RafaDX

Buy Hadouken $1

that's the strategy

Lionheart199020
Lionheart199020

You mean to say that the the people YOU outsourced your franchises to are the ones to blame, Capcom, and not YOURSELVES for outsourcing those franchises? Maybe I should hire the cheapest person I can get to undertake a project of tremendous magnitude and risk, then blame them when the project bombs. Case in point, you get what you pay for. Man the eff up Capcom, quit making excuses, and quit exploiting the less informed with your ripoff DLC practices. YOU are to blame for a lot of the corruption going on in the video game industry, and also to blame for one of my favorite franchises going to absolute shit. Don't you dare milk Mega Man Capcom, just stay the fuck away from it.

J-007
J-007

Capcom needs a reboot. I've come to realize how poor entertainment has become especially after all the years that technology has put in front of us. The real deal is hard to come by..

franzito
franzito

As much as I enjoyed RE 6, Capcom prefers to stay in denial and keep blaming anyone else besides themselves. Like this is going to change the average sales, the hit-and-miss games and, ultimately, their capacity to take responsability.

redness19
redness19

If Capcom had any sense they'd make Duck Tales the first in a long list of NES and SNES classics that get a HD remaster.

usmannaseer
usmannaseer

Firstly DMC: The original Devil May Cry on the Ps2 was easily the best in the series with over the top combat system both guns and swords gameplay, but what stood out for me was the focus on Dante's Demonic powers, Dante in Devil mode was simply Awesome and truly powerful, if u guys remember at all. If capcom wants to reboot DMC they should go back to Devil may cry 1 on ps2 for creativity. The new ninja theory reboot of DMC was lack luster.Capcom needs to be really creative with Dante's Devil powers if they want  to make another DMC. As for the Resident Evil series Well the first was awesome, 2nd was cool then code veronica was simply amazing then they rebooted the gameplay with Resident evil 4 which by the way was Awesome too. after that they kind of lost survival horror concept with Re5 and Re6.  

DigitalBushido
DigitalBushido

They didnt listen when fans told them they dont want this new DMC. And so they got what they wanted. I supported my statement by not purchasing a copy as I know many others have.

Sandro7
Sandro7

Thank god DmC failed hard. If i hear that piece of poo get sequel, im gonna snap. Start killing spree and will proudly go jail for it

sillycatsteven
sillycatsteven

They just need to stop focusing so much on trying to make money and just start focusing on making good games....
i seriously hope by digital content, they mean full games stream/downloaded from internet and not DLC's.

Vodoo
Vodoo

Obviously the Asians have lost their way. They seem to be stuck in the 80's and early 90's. They need to pull their head out of their ass if they don't want to close up shop. Square-Enix actually made some of the best games of the year, with Tomb Raider, Hitman Absolution, and Sleeping Dogs, with Tomb Raider having one of the best single-player campaigns I've EVER played in all my 30 years of gaming. 

Too bad their marketing dept. did a terrible job getting the word out. For a company to lose money on any one of those games is just wrong, nevermind losing out on all three. I only hope we see sequels to all 3 of those ip's sometime in the near future. It wasn't your fault Square, it was our fault as gamers to not collectively support awesome games when they were smacking us in the face. Personally, I bought Tomb Raider and Hitman, but most gamers didn't.

JustArtificial
JustArtificial

DmC did terrible because Ninja Theory have had ****s stuck in their earholes, because they couldn't hear the outcry that the reboot was receiving before and after it's release.

RE has been terrible because it's moved away from horror, and is just a hollywood action movie directed by Michael Bay. The game controlled horribly, the camera view was obscured, the HUD atrocious, and everyone just dived around the screen.

Megaman hasn't seen daylight in ages, has had terrible iterations and hasn't been handled well.

MvC3 was going to fail from Day 1 because it was just the bare minimum. You can't get away with that, especially when you're releasing another game that is in the same genre and has more content. UMvC3 was going to fail harder, because it left many MvC3 fans out of the loop, had the same DLC characters for purchase, still offered DLC skins and was STILL missing content.

SF has been a bit of a mess, every version since 2 receiving an "Ultimate" version. SF4 receiving 3 versions, with SFxT acting as a massive scam and disappointment.

Dragon's Dogma, even with disc locked content, is the only game worth a damn. HOWEVER, you've ********ed you're way into reselling the game, trying to convince us "it was made without DLC in mind".

Awful DLC practice, and flat out stupidity is what's killing you.

MaestroFilipe
MaestroFilipe

Well, what can i say ?! I´ll try to be the most fair and honest possible because, sometimes, i come to this chat´s and all i see is people complaining about everything. So, first, why has Capcom sold so "Few" copies of it´s ip´s? I don´t know. Most say "They should make Resident evil like it once was" but i´ll tell u right now, i´ve become more interested in RE after turned the franchise more action oriented, but hey, that´s me. In the other hand, a lot of people loved Dmc:Devil may cry but i was like "What, creating a whole new beginning for the franchise? "Hell no. If they made it a prequel, i would support them, even ignoring the fact of Dante´s appearance, but a reboot? So, to end, when it comes to fighting games...Capcom along with Namco and a few other companies should learn something from NetherRealm studios. Mortal Kombat was amazing i was never a MK fan, but after 9, they made me a believer. Fighting games need story too, and much. Anyway, in conclusion, i think it´s just a matter of time until Capcom gets on their feet again and pay attention to the fans, even if that means RE will become more horror again but discard DMC and return to original Devil may cry. Cheers

tightwad34
tightwad34

Why don't you just say the people you put in charge, or maybe it's you yourself, are to blame. Quit trying to find a scapegoat and be men and fess up. It appears that it still happened on your watch(and $$).

FallenOneX
FallenOneX

Don't blame outsourcing, it's still your property.

It's like blaming the kid for knocking over the vase when you sat there and watched them do it.

xeoneex66
xeoneex66

Capcom's failure stems from many bad choices, many bad games, the god damn heresy of letting Infune get away, and the bad bad BAD decision to can Mega Man.  No, they are crap, and will always be Crapcom in my eyes.  Fuck you for ruining the one thing you had going for you, Mega Man.

horizonwriter
horizonwriter

Wow.  Buckling down with even more DLC... Are they trying to draw out the pitchforks and torches?

ethanm1834
ethanm1834

Resident Evil was honestly designed to get to the point of failure. The scope got bigger more of the world got taken over and the virus itself changed. As much as we may have liked Resident Evil 4, when you have the infected having weapons, it progresses and then you have zombies with guns. RE4 was my favorite resident evil with the original being second. However it set a few things up, the changing of the virus, the infected area growing, and infected with weapons. When you continue the story all you're doing is ramping it up. As you ramp it up, we get to this point. Or you go the other way and reboot.


Which leads to DMC. Now DMC backlash was apparently the character appearance changing. Which I guess is a legit argument. If you rebooted Mario and he didn't look like Mario people would be upset. So when you reboot, reboot with care.

snaketus
snaketus

Just reboot Resident Evil. Not story but the gameplay. Stop making games that play like movies with stupid QTEs. Pay attention to PC controls, let people bind them the way they want. Less movie, no quicktime events and original Resident Evil gameplay modernized and I'll buy your future Resident Evil games. If it has to be like it is 4-6 then atleast better controls are required (I'm gonna dash now! No I didn't want to jump over the car there and die! No don't span camera away when I'm playing, died because of that).

The bottom line is: No quick time events on next generation of games, please.

sunyatanada76
sunyatanada76

Only when they lose money do they give the gamer population any respect.

xolivierx
xolivierx

@chuchupika agreed. they could have tried to release something similar as Resident Evil in terms of gameplay, with a very different story of course ad maybe even more a little rpgesque. another company trying to milk the customers to death without any major improvment. How I miss new interesting titles.

96augment
96augment

@usmannaseer I prefer DMC 3. There were way more weapons and bosses. In my opinion, Dante and Vergil were way cooler in DMC 3.

xolivierx
xolivierx

@DigitalBushido And that's how we change things. So many hypocrits out there saying CAPcom sucks and yet they still buy their games. kudo

ravenkiller
ravenkiller

@Vodoo your absoluty right tomb raider from start to finish was a blast just wish I didn't have multiplayer. the multiplayer isn't that good but the singleplayer is legendary and Iv'e been gaming for 30 yr's as well

RebeccachuClark
RebeccachuClark

So true. Heck, even "Free" DLC (You know, DLC in which you can get for free without paying money) is better than Locked On-Disc DLC!

MaestroFilipe
MaestroFilipe

By the way, Rival scools was f u c k i n g amazing. Bring it back...maybe lol


Redrivar
Redrivar

@xeoneex66 Inafune himself said old guard, outdated executives are runing capcom and japanese game development in general. 100% agree

Fastphase1
Fastphase1

@snaketus Resident Evil Revelations has everything you want. A great 3DS game and now it comes out on the home consoles as well.

Redrivar
Redrivar

@sunyatanada76 If they won't listen to what their consumers want, then the consumers have no choice but to speak with their wallets...

arc_salvo
arc_salvo

@sunyatanada76 Yeah a lot of game companies and companies in general are unfortunately like that.  They're not smart enough to realize that they're losing the money BECAUSE they're not respecting their customers, and that they made it in the first place because they did.

usmannaseer
usmannaseer

@96augment @usmannaseer i completely agree dude but Dante's Devil powers were the best in DMC 1 on Ps2, and whats cool about Dante is that he is a half Demon and capcom can be a lot more creative with his demon abilities. They should take the best from DMC 1 & DMC 3 and make a new game, and hope they do it themselves instead of sourcing out!

96augment
96augment

@usmannaseer   I barely remember Devil may Cry 1. If you say the devil powers were better in DMC 1, then I believe you. Well, it will be years before a new DMC comes out. Who knows what will happen to it? As long as it's fun, I'm happy.