As Capcom Plays It Safe, Sales Fall and Profits Climb

Cost-cutting Street Fighter 5 publisher announces profit increase.

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A risk-averse financial year for Capcom has resulted in a 36 percent decrease in sales, but its cost-cutting measures has ensured its profits are up year-on-year.

For the nine-month period between April and December, the corporation made about $407 million in revenue, which represents a 36 percent decrease compared to its 2013 performance.

However, due to its company-wide cost cutting, net profits climbed 10 percent, up to about $56 million. This result is emblematic of the modern-day publishing industry, with corporations looking to limit the level of risk in triple-A games development.

It also means fewer games, and fewer major investments, as Capcom attempts to reduce the volatility of its business. Recently, the publisher announced it was partnering with Sony to develop Street Fighter V, with the PlayStation manufacturer believed to be contributing a significant portion of development costs of the next-gen fighter.

In terms of games, Capcom wouldn't go into specifics but said Monster Hunter 4 Ultimate performed in line with expectations. It added that sales of Ultra Street Fighter IV were "solid, reflecting its strong popularity in the Digital Contents business."

Sales of legacy titles on digital platforms such as Steam also contributed to profits, Capcom added.

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