Capcom lowers profit forecast

By Tor Thorsen, GameSpotPosted Mar 31, 2006 6:48 am PT

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.

45 Comments

  • Impostorzim

    Posted Feb 14, 2007 5:37 am PT

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

  • vasquezinus

    Posted Feb 10, 2007 11:16 am PT

    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

    Posted Feb 6, 2007 8:07 pm PT

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

  • Hillsy_

    Posted Nov 27, 2006 5:59 pm PT

    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

    Posted Aug 28, 2006 8:33 am PT

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

  • beldugo

    Posted Jun 15, 2006 10:29 pm PT

    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.

  • Mohandas_Gandhi

    Posted Jun 14, 2006 7:36 pm PT

    I agree with the person who said: Street Fighter IV

  • hitman187x

    Posted Apr 3, 2006 1:11 am PT

    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

    Posted Apr 2, 2006 1:59 pm PT

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

  • Drevan

    Posted Apr 2, 2006 1:58 pm PT

    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

    Posted Apr 2, 2006 12:44 am PT

    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

    Posted Apr 1, 2006 9:17 pm PT

    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

    Posted Apr 1, 2006 9:16 pm PT

    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

    Posted Apr 1, 2006 6:40 pm PT

    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

    Posted Apr 1, 2006 4:27 pm PT

    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

    Posted Apr 1, 2006 11:40 am PT

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

  • MysticGenie

    Posted Apr 1, 2006 10:24 am PT

    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

    Posted Apr 1, 2006 8:40 am PT

    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

    Posted Apr 1, 2006 6:14 am PT

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

  • Magtiger

    Posted Apr 1, 2006 12:29 am PT

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

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